There’s no excuse for transfer delays and exit fees

STOCK MARKET investments are purchased through brokers who register them on financial platforms. This is vital for regulation, particularly when there are tax implications such as for Individual Savings Accounts and self-invested personal pensions.

In time, it should be possible to have all money holdings listed in the same way, from friendly society tax-exempt savings plans to building society accounts.

Providers vary greatly on the information they convey from client platforms, on their charges and on their efficiency. The helpful ones provide insights on the geographical and sector compositions and disclose comparative data on past purchases with performance.

Reminders of the remaining annual ISA allowance available are also usually given.

Charges have to be revealed but the print size may be a reminder your regular checkup with the optician is overdue. Some platforms discourage clients from moving by imposing an exit fee even though clerical work involved is minimal.

The regulator, the Financial Conduct Authority (FCA), issued a report in March, recommending providers do not make any such charge. Several platforms who specialise in private clients have ignored this, such as AJ Bell which charges £25 for each fund or stock and Charles Stanley with £10 for each holding.

Hargreaves Lansdown caved in and has cancelled exit fees. The Lloyds Bank subsidiary, Halifax, has removed the £90 charge if a SIPP investor wishes to move.

Not content with discouraging exiting by charges, some platforms are holding onto client money for far longer than necessary. Instead of transferring within seven days, some platforms are exceeding three months.

The FCA should impose penalties on such dilatory behaviour. This would be a wakeup call to certain providers who clearly have not put sufficient resources into staffing this key area.