Last month Investors Chronicle reported that some investors are waiting up to five months to transfer their assets between brokers. During this period they are unable to trade stocks and shares, despite their investments still being exposed to the peaks and troughs of the market. Since then we have had a number of reader questions on the subject.
Q. Have I found a way to avoid the delays?
"I read the article on in-specie transfer delays with interest, however I think I have found a way to avoid the long waiting periods. I am going to move my assets from Brewin Dolphin to Hargreaves Lansdown and despite Brewin Dolphin advising me against it, I'm requesting all my own share certificates in paper so I can effectively become my own nominee. This way I can have my assets transferred in less than three weeks with no risk of delays. Why aren't other investors doing the same?"
Richard, 83, Aberdeen
A: You are right that holding your own certificates could mean avoiding delays. This is because one of the reasons for the long waiting periods is that each share and fund has to be transferred individually - and they are all held by different nominees. By holding the certificates yourself, you are effectively becoming your own nominee so you can bypass this process.
However, we strongly recommend investors do not request their own share certificates. There are several reasons for this. For a start, it's very expensive. Most brokers charge around £25 per share. Another downside is that if your money is held in an individual savings account (Isa) or a self-invested personal pension (Sipp) you will instantly lose your tax wrapper, meaning you'll have to pay tax on any future profits you make. Owning your own paper share certificates is also highly risky because if you lose them, or they go astray in the post, you are likely to have to spend a galling amount of time and money to replace them - and you also need to consider that because brokers are trying to phase them out, not all of them even accept paper certificates anymore. So, given all of these downsides which could cost you a lot of money, you should really think twice before requesting your own share certificates.
Q. What's the best way to complain about a delay?
"I am waiting to transfer from Hargreaves to Interactive Investor. Neither seems to be very helpful and they are both blaming each other, I have made an official complaint to Interactive Investor as to their confusion on my instruction and if the complaint is not followed through with compensation for my loss I shall complain via the Financial Conduct Authority. It is scandalous how long these companies are taking to complete transfers and not keeping customers informed. After all it is our money and investments. Any advice you have about whether this is the right thing to do would be much appreciated."
Dan in London
A: It is most important to get your complaint heard by the broker you are trying to move away from. This is because in the vast majority of cases they are the party that's stalling your transfer because its administration isn't up to scratch. We have spoken to several brokers waiting to receive transfer money who have confirmed this. They also say they don't get very far if they call up to complain on your behalf, and they recommend picking up the phone or writing in yourself. When you call make sure you escalate your complaint straight to a manager and take down their name so you can ask to speak to the same person every time, as you'll likely be making more than one phone call. If you don't get a satisfactory answer then you can take your complaint to the Financial Ombudsman Service.
My broker says my transfer request has been lost
Q. "I requested an Isa transfer from Bestinvest to Interactive Investor a month ago. Interactive Investor says it has sent the transfer request and two follow-up emails. Bestinvest denies having received any communications at all regarding the transfer. Meanwhile, Bestinvest has started charging me the new monthly Isa fee. What is the best way for me to proceed?"
Anon
A: You need to get copies of the transfer request to prove it was made and either post or email it to Bestinvest. Call Bestinvest and ask to speak to a manager and explain your situation, that you find it unacceptable, and that you have sent them proof that the transfer was requested a month ago. If you can prove that the transfer has been requested and was lost by Bestinvest, then it would not be unreasonable to request a refund for the difference in fees paid during the period in question.
