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Hargreaves and ATS review exit charges

Hargreaves Lansdown expects to reduce exit charges from its Vantage platform while Alliance Trust Savings has said it will consider reducing exit fees if the regulator provides specific guidance.

Last week FCA director of long-term savings and pensions Nick Poyntz-Wright raised concerns around charges for the re-registration of platform assets.

He said: “We saw some firms introducing exit charges and we would not want those exit charges to get to a level where they might present a barrier to exit for the customer and inhibit competition in the market.”

Hargreaves annouced its clean pricing structure and the preferential funds deals on its Wealth 150 list in January.

It also revealed it would be introducing a £25 exit fee for investors who want to close their platform account, and has a £25 per line of stock to re-register to another platform provider. 

Hargreaves Lansdown head of financial planning Danny Cox says: “We expect transfer charges to reduce over time as processes improve and the amount of manual work reduces.

“The charges levied reflect the work done and therefore if the work required reduces then the charges should also reduce.”

Alliance Trust Savings increased its charges in December and applies a £100 fee to transfer assets away from the platform, although that fee is temporarily waived for clients that want to leave following the price increase. 

For new customers, it offers to reimburse clients for exit charges applied by a ceding platform.

ATS head of platform proposition Sara Wilson says: “We will consider our position if the FCA provides guidance on exit fees.”

AJ Bell applies a £25 per fund exit fee on D2C and advised platforms and says it has no plans to reduce this.

Ascentric, Novia, Skandia, Zurich, Aviva, Transact, Nucleus and Cofunds do not charge to re-reg in-specie assets.

Fidelity and 7IM did not respond to requests for comment.

Pilot Financial Planning managing director Ian Thomas says: “I do not think that the FCA is likely to have a problem with charges to cover costs. 

“The question is whether charges like £25 per fund are reasonable.”

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The question may be …. the answer is NO. I have 40 funds with one platform. £1,000 to move would be ridiculous. Even 10 funds – £250 –

    Although a fan of ATS – do think that even £100 is too much. Perhaps £50 max ?

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