In the UK, the current account switching service makes it really simple to switch current accounts in order to force banks to compete with each other and ensure customers aren’t put off from attaining a better service due to excessive administration. Nobody is locked in to a specific institution due to anti-competitive practices.
With that in mind, it truly baffles me how in-specie transfers aren’t treated in the same way as current accounts. It seems to me to be totally unjustifiable for a company to not allow customers to leave (or join for that matter) without first being forced in to performing a potentially disadvantageous financial decision in the form of closing stock positions, due to transfers being cash-only. It’s like a bank requiring you to empty your current account before you switch away from them. Why? Many would find it unnecessary and inconvenient at the least. I’ve heard the argument about brokers needing to identify share ownership etc etc but this is something that can easily be standardised across the industry if there was the political will.
Nobody loses in this scenario if in-specie transfers are allowed both in and out so with this in mind, I’d like to add my name to the already long list of people on this forum who have asked for in-specie transfers to be offered by T212. This surely must be one of the most important feature requests for customer choice, safety of investments and market competition.
My questions for the T212 team are; why do you currently allow cash transfers but not in-specie transfers? When can we expect to see in-specie transfers? I’ve seen many representatives on this forum say they might come one day but we don’t even get so much as a vague timeframe.
I honestly don’t see how improvements to trivial things such as the pies feature can be mentioned in the same breath as improvements to the transfers functionality.