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Post by moonraker on Feb 11, 2024 13:10:38 GMT
Last night I had an email from Hargreaves Lansdown directing me to a PM on my account page. This advised me of an outstanding fee of £161.38 on my Fund & Share Account and saying that I need "to ensure a settled cash balance is available on your account to cover the outstanding fees", otherwise it would sell some of my shares to cover the sum. Yet my "amount available to invest" is much in excess of £161 and includes a minimum cash balance of £500 intended to cover fees. I'm puzzled as to why the £161.38 can't be taken from this.
In twenty years with HL, I've never had this type of message before and I can't see anything in my account settings that suggests that the fees can't be taken from cash already held in my account.
I've messaged HL acknowledging that I've probably missed something (ie I'm thick), and asking for guidance.
I'm not indignant, merely curious.
Any thoughts?
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james100
Member of DD Central
Posts: 1,084
Likes: 1,287
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Post by james100 on Feb 11, 2024 13:24:35 GMT
Last night I had an email from Hargreaves Lansdown directing me to a PM on my account page. This advised me of an outstanding fee of £161.38 on my Fund & Share Account and saying that I need "to ensure a settled cash balance is available on your account to cover the outstanding fees", otherwise it would sell some of my shares to cover the sum. Yet my "amount available to invest" is much in excess of £161 and includes a minimum cash balance of £500 intended to cover fees. I'm puzzled as to why the £161.38 can't be taken from this.
In twenty years with HL, I've never had this type of message before and I can't see anything in my account settings that suggests that the fees can't be taken from cash already held in my account.
I've messaged HL acknowledging that I've probably missed something (ie I'm thick), and asking for guidance.
I'm not indignant, merely curious.
Any thoughts?
You need to go into settings and check which fee option you're set to (and change your setting or top up relevant account accordingly). This HL link will give you more info: www.hl.co.uk/my-accounts/fee-collection-options. Yes, they are within rights to sell your holdings if there is zero cash available in the specific account designated for fee withdrawals. They will also probably change you their (overpriced) share dealing fee for the privilege too. Just go into the fee account, clear off the balance (move or add cash to enable yourself to do this) then amend the fee account settings to taste. EDIT: www.hl.co.uk/my-accounts/fee-collection-options is correct link
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Post by moonraker on Feb 11, 2024 14:19:32 GMT
Thanks for your prompt reply and links. I've checked my instructions, and they show that I've opted for "standard" fee collection:
"We will try to collect fees in this order:
The Loyalty Bonus Account
The income account of your Stocks & Shares ISA
The capital account of your Stocks & Shares ISA
Cash in your Fund & Share Account based on the collection option you have chosen for that account."
There's not much in my Loyalty Bonus Account, but more than enough in each of the other three.
Looking at my Fees history, a similar sum has been deducted each month for some time with no fuss, and I haven't tweaked my instructions for many years, so I'm wondering why yesterday's email. (Not that HL is infallible: I've had the occasional glitch in the past, with delayed notifications and one confirming a transaction carried out ten yearss earlier.)
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warn
Member of DD Central
Curmudgeon
Posts: 636 
Likes: 658
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Post by warn on Feb 11, 2024 15:58:18 GMT
Last night I had an email from Hargreaves Lansdown directing me to a PM on my account page. This advised me of an outstanding fee of £161.38 on my Fund & Share Account and saying that I need "to ensure a settled cash balance is available on your account to cover the outstanding fees", otherwise it would sell some of my shares to cover the sum. Yet my "amount available to invest" is much in excess of £161 and includes a minimum cash balance of £500 intended to cover fees. I'm puzzled as to why the £161.38 can't be taken from this.
In twenty years with HL, I've never had this type of message before and I can't see anything in my account settings that suggests that the fees can't be taken from cash already held in my account.
I've messaged HL acknowledging that I've probably missed something (ie I'm thick), and asking for guidance.
I'm not indignant, merely curious.
Any thoughts?
I got one of these too -- despite my fees having been duly collected on Feb 5, and plenty of dosh left in the Capital account for next month too. I messaged them, suggesting (politely) that their computer had thrown a wobbly. I expect they'll fix it tomorrow.
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Post by moonraker on Feb 11, 2024 16:17:35 GMT
That's reassuring - in that I may not be as thick as I'd thought.
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dead-money
Rocket to the Moon
Posts: 746
Likes: 654
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Post by dead-money on Feb 12, 2024 9:12:15 GMT
FYI, It's optimal to take ISA and LISA fees from the general fund and share account, rather than eat into your ISA account.
SIPP and SIPP drawdown fees are best taken from within those accounts.
The HL website fees tab suggests an appropriate minimum cash balance for each account based on your fee collection settings.
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Post by moonraker on Feb 12, 2024 15:57:20 GMT
I've conscientiously observed these cash balances for years. Just had the message from HL:
"The message you received was generated before we had collected the fees from the cash balance held within your account. As you had sufficient cash to cover the outstanding fees, no further action is required from you, and no investments on your account will be sold to cover fees."
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warn
Member of DD Central
Curmudgeon
Posts: 636
Likes: 658
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Post by warn on Feb 13, 2024 7:20:07 GMT
I've conscientiously observed these cash balances for years. Just had the message from HL:
"The message you received was generated before we had collected the fees from the cash balance held within your account. As you had sufficient cash to cover the outstanding fees, no further action is required from you, and no investments on your account will be sold to cover fees."
Identical response to me, and doubtless to many others. A hint of "oops, our bad, sorry" would have been nice.
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travolta
Member of DD Central
Posts: 1,506
Likes: 1,214
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Post by travolta on Feb 13, 2024 15:35:49 GMT
Me too.
I ignored it .
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Post by overthehill on Nov 15, 2024 14:29:01 GMT
Here's another stupid piece of regulation which benefits the investor in no way. Loyalty bonuses from funds can not be accessed until the total reaches £10. So an average of £5 x 500k investors = 2.5M earning interest for HL. Before 2014 you could transfer the cash from your income to capital account.
If the account is closed or no longer used like a SIPP account or a Stocks and Shares account then the money is lost but displayed just to annoy you.
"
Automatically reinvested (Largest Holding): Your loyalty bonus will be automatically reinvested into your largest holding when it reaches a minimum of £10.00. The automatic reinvestments take place monthly.
Reinvest when I choose: Your loyalty bonus will be held in your income account as cash pending a reinvestment instruction from you. Under the rules of our regulator, the Financial Conduct Authority (FCA), loyalty bonus payments must be reinvested back into a fund. We are unable to pay this money out to your bank account or use it to pay fees. When your loyalty bonus has reached a minimum of £10.00 (or more) you will then, at a time of your choosing, be able to invest the balance in any of the funds (unit trusts/OIECs) you hold at that time. The minimum investment is £10.00 per fund.
"
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