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Post by shanghaiscouse on Feb 13, 2020 8:43:21 GMT
Dear all, who has experience of transferring their ISA out of FC? I understand the FC ISA is an "Innovative Finance" type ISA. Is it possible to transfer it to a stocks and shares ISA with another provider? I was going to transfer it to my broker IG but they don't seem to accept Innovative Finance ISAs. So does this mean I have to transfer it to another Innovative Finance ISA? Is this allowance trapped forever in this category?
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Feb 13, 2020 9:05:17 GMT
now there's a thought, i'm fully subscribed for this year but if I could transfer mine out in April, obviously less the defaults etc, would release funds quicker than the current sales process
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Post by Ace on Feb 13, 2020 9:05:55 GMT
Dear all, who has experience of transferring their ISA out of FC? I understand the FC ISA is an "Innovative Finance" type ISA. Is it possible to transfer it to a stocks and shares ISA with another provider? I was going to transfer it to my broker IG but they don't seem to accept Innovative Finance ISAs. So does this mean I have to transfer it to another Innovative Finance ISA? Is this allowance trapped forever in this category? As long as the funds you want to transfer are held in cash within your FC account, rather than lent out, most firms allow you to transfer to them by ticking the cash ISA box on the transfer form. I haven't tried with IG, so might be worth checking with them first. If not then you can transfer to a cash ISA then transfer out to IG. I've used a nationwide cash ISA for a similar purpose with no issues.
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Post by carol167 on Feb 13, 2020 9:06:13 GMT
Dear all, who has experience of transferring their ISA out of FC? I understand the FC ISA is an "Innovative Finance" type ISA. Is it possible to transfer it to a stocks and shares ISA with another provider? I was going to transfer it to my broker IG but they don't seem to accept Innovative Finance ISAs. So does this mean I have to transfer it to another Innovative Finance ISA? Is this allowance trapped forever in this category?
I've successfully transferred my IFISA from p-2-p platforms to my share dealer which is share.com. So you should be able to transfer between any of the three - Cash, Shares, IFISA.
Maybe your particular share dealer doesn't accept (which would seem odd) but you can always transfer an IFISA to a cash ISA first - and then to the share dealer.
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Post by Ace on Feb 13, 2020 9:07:05 GMT
now there's a thought, i'm fully subscribed for this year but if I could transfer mine out in April, obviously less the defaults etc, would release funds quicker than the current sales process That won't work as you can only transfer funds held in cash.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,594
Likes: 2,624
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Post by keitha on Feb 13, 2020 9:10:11 GMT
now there's a thought, i'm fully subscribed for this year but if I could transfer mine out in April, obviously less the defaults etc, would release funds quicker than the current sales process That won't work as you can only transfer funds held in cash. Oh well back to drawing board
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pa
Posts: 40 
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Post by pa on Feb 13, 2020 9:18:46 GMT
I had the same thing with IG... Their transfer form is just out of date.
I transferred my IFISA to IG from Funding Secure without any problem after liquidating all loan parts that I could.
The IFISA at FS was kept open as I had £25 in a painting that is being discussed on another thread.
I assume similar with FC.
... There was one caveat the transfer was all from prior tax year contributions.
I think the situation is different if it is current year contributions but someone more informed than me would have to elaborate/correct me on the exact detail.
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corto
Member of DD Central
one-syllabistic
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Post by corto on Feb 13, 2020 9:20:14 GMT
Dear all, who has experience of transferring their ISA out of FC? I understand the FC ISA is an "Innovative Finance" type ISA. Is it possible to transfer it to a stocks and shares ISA with another provider? I was going to transfer it to my broker IG but they don't seem to accept Innovative Finance ISAs. So does this mean I have to transfer it to another Innovative Finance ISA? Is this allowance trapped forever in this category? Transferring out is one good thing about FC. I have done incremental transfers out to several other IFISA providers all within a month and had no problems; all happened very quick (one in 2 days, the slowest one was about 2 weeks and these were caused by the target provider being slow). I think FC would also transfer to S&S or cash ISA providers, but it is the latter that may not allow transfers from IFISAs as it can cause them more than the usual work. Just ask them. If you can tell them that it's a partial transfer and the transfer amount is sitting as cash in your FC account you may be able to convince them. They would not have to expect any future drizzles of late repayments or returns from locked in loans. It seemed to have been a common idea among non-IFISA providers that that could happen with full transfers. So, they thought they might get engaged into a potentially years-long process, which of course they wouldn't want. If you contact FC before transferring you can tell them if you want to keep the ISA account as an ISA or turn it into a standard account. They did ask me when I transferred the first part out; this was just about 15%; it was quite thoughtful of them to ask. I believe the default would have been to turn the ISA into a standard account. For a full transfer that still would be the default; I think I saw it in the T&Cs. My transfers have been a year ago; rules may have changed by now. Likewise, at that time transferring IFISAs was very new and many platforms did not have much of a clue how to do it. That has probably changed by now.
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corto
Member of DD Central
one-syllabistic
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Post by corto on Feb 13, 2020 9:21:12 GMT
now there's a thought, i'm fully subscribed for this year but if I could transfer mine out in April, obviously less the defaults etc, would release funds quicker than the current sales process It wouldn't. You have to sell before you transfer out. You can't transfer the loans.
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Post by shanghaiscouse on Feb 13, 2020 9:22:29 GMT
OK, s what I am hearing is that I first need to sell the loans in my FC IFISA (easier said than done!) then the cash can be transferred to a new ISA provider's cash ISA or stocks and shares ISA. This could take a LONG time and a lot of trouble constantly transferring small amounts.
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corto
Member of DD Central
one-syllabistic
Posts: 851
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Post by corto on Feb 13, 2020 9:25:54 GMT
OK, s what I am hearing is that I first need to sell the loans in my FC IFISA (easier said than done!) then the cash can be transferred to a new ISA provider's cash ISA or stocks and shares ISA. This could take a LONG time and a lot of trouble constantly transferring small amounts. Yes. That's how it is.
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Post by shanghaiscouse on Feb 13, 2020 9:29:24 GMT
considering I currently stand at 1.8% lifetime return after 5 years and plenty of trapped loans that will go bad and pull this down further, and the hassle of dealing with FC, I would never recommend this platform to anyone!
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corto
Member of DD Central
one-syllabistic
Posts: 851
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Post by corto on Feb 13, 2020 9:30:29 GMT
considering I currently stand at 1.8% lifetime return after 5 years and plenty of trapped loans that will go bad and pull this down further, and the hassle of dealing with FC, I would never recommend this platform to anyone! I'd not recommend them either anymore
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Post by carol167 on Feb 13, 2020 9:35:53 GMT
Perhaps we should have a Poll in General Polls for "Worst Platform" to warn people who might otherwise be tempted...
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ceejay
Posts: 975
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Post by ceejay on Feb 13, 2020 9:42:18 GMT
considering I currently stand at 1.8% lifetime return after 5 years and plenty of trapped loans that will go bad and pull this down further, and the hassle of dealing with FC, I would never recommend this platform to anyone! Well, indeed, and FC are particularly bad when it comes to liquidity at the moment. But to be fair (do we really want to be fair with respect to FC?? Well, maybe just the once) some of the issues you are describing are inherent risks in applying an ISA wrapper to an illiquid asset like a P2P investment. The ISA transfer rules are all very well and jolly, but they really only work well when you are invested in flexible cash, or fully liquid assets like most stocks and shares. As soon as you enter the world of P2P, where you invest in individual loans which have the capability of going bad and which may or may not be sellable on a secondary market, ISA transfers are a problem. Sure, once you've got back into cash, everything should be fine (even if you may have to work a bit harder than necessary with some ISA providers to accept an IFISA transfer in). But you can never be sure of being able to get back into cash whenever you want. Fully pooled products like the AC Access accounts have a reduced (but still not zero) risk in this regard.
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