Moving money between fund platforms?

[bitchstewie]

Perhaps I'm being over-cautious even wondering about this but I've been bemused by a couple of threads recently where people were doing things that they felt might peak their banks interest.

I have an account with a major UK fund platform and I'd like to sell some funds on that platform and move the freed up cash to a different platform.

It's unwrapped so there's no tax/wrapper issues nor are there any capital gains issues.

I would be buying different investments on the other platform so I see no obvious benefit trying to do a platform to platform transfer.

The quickest thing seems to be to sell, withdraw the cash, then use it to fund the other platform.

Clearly there's nothing untoward going on just a bit of musical chairs via my bank account rather than transferring directly between platforms.

Is this likely to cause any issues?

[mikeiow]

bhstewie said:

Perhaps I'm being over-cautious even wondering about this but I've been bemused by a couple of threads recently where people were doing things that they felt might peak their banks interest.

I have an account with a major UK fund platform and I'd like to sell some funds on that platform and move the freed up cash to a different platform.

It's unwrapped so there's no tax/wrapper issues nor are there any capital gains issues.

I would be buying different investments on the other platform so I see no obvious benefit trying to do a platform to platform transfer.

The quickest thing seems to be to sell, withdraw the cash, then use it to fund the other platform.

Clearly there's nothing untoward going on just a bit of musical chairs via my bank account rather than transferring directly between platforms.

Is this likely to cause any issues?

I would doubt it very much.

Main bank for us is Santander: over the years, I’ve regularly had large sums shuffled in and out (mostly stock movements, also a large TFLS this year) with nothing more that a slip posting to inform me.

Now the challenger banks (Monzo and Starling, etc) who knows!
Monzo was in the press recently for freezing accounts, & because they do it for *their* security reasons, one never knows why...
Both recently made me chip&pin for payments, but that is basic security really...

[bitchstewie]

mikeiow said:

I would doubt it very much.

Main bank for us is Santander: over the years, I’ve regularly had large sums shuffled in and out (mostly stock movements, also a large TFLS this year) with nothing more that a slip posting to inform me.

Now the challenger banks (Monzo and Starling, etc) who knows!
Monzo was in the press recently for freezing accounts, & because they do it for *their* security reasons, one never knows why...
Both recently made me chip&pin for payments, but that is basic security really...

It's a major high street bank who I've been with a couple of decades and a major UK fund platform.

Absolutely nothing weird or dodgy it's literally sell on platform A, withdraw into bank, use cash to fund platform B or I might even use spare cash in the bank to fund platform B whilst I wait for the cash from the sale to clear.

I would assume that banks know when money is paid in if it's a well known bank account such as a fund platform?

I feel daft even asking as it seems so mundane but you read some horror stories

[Mr Pointy]

bhstewie said:

It's unwrapped so there's no tax/wrapper issues nor are there any capital gains issues.

Are the funds in a General Investment Account? If so, are you sure there aren't any CGT issues?

[bitchstewie]

Mr Pointy said:

Are the funds in a General Investment Account? If so, are you sure there aren't any CGT issues?

Short answer, yes and yes

[Mr Pointy]

bhstewie said:

Mr Pointy said:

Are the funds in a General Investment Account? If so, are you sure there aren't any CGT issues?

Short answer, yes and yes

OK. It's just that when I moved my funds out of a GIA it was a CGT triggering event.

[bitchstewie]

Mr Pointy said:

OK. It's just that when I moved my funds out of a GIA it was a CGT triggering event.

Fully understood, this is more a change of approach for some money from active to passive very shortly after it went in.

[JulianPH]

I am a tad confused here.

I am assuming that the new platform offers better pricing for the funds you are seeking to hold (otherwise you would be using the same platform for these holdings).

What I don't understand is why you consider transferring the money from one platform to your bank account and then transferring this money from your bank account to the other platform is more efficient than just instructing one transfer from platform A to platform B.

Incidentally, I can't see your bank having an issue with this.

[Simpo Two]

JulianPH said:

What I don't understand is why you consider transferring the money from one platform to your bank account and then transferring this money from your bank account to the other platform is more efficient than just instructing one transfer from platform A to platform B.

Me too. In specie transfer, then switch funds on Platform 2. Or the other way round. Two parties involved instead of three.

[bitchstewie]

Vanguard don't accept other funds so it would have to be sold and transferred as cash anyway.

That aside I don't know if you can do transfers between most platforms of some of an account anyway I always thought transfers were all or nothing?

[Simpo Two]

bhstewie said:

Vanguard don't accept other funds so it would have to be sold and transferred as cash anyway.

That aside I don't know if you can do transfers between most platforms of some of an account anyway I always thought transfers were all or nothing?

So the new platform is Vanguard and you can only hold Vanguard funds on it?

I moved platforms a year or two ago and both were very helpful; I could transfer whichever funds I wanted - but the new platform does have to offer the same fund/s if you want to do in specie.

[red_slr]

IME its getting to the point now where banks are not interested in online movement of money. So long as you pass their authentication process, what ever that may be - OTC or C&P reader etc then they just move the money and that's that.

Only thing to be aware of is some banks have limits of what you can send out online. We ran into this problem back in the new year and had to go to branch to do it.