D2C platforms under fire over 'punitive' exit fees

Investors wishing to move from direct-to-consumer to adviser platforms face "punitive" exit fees, according to analysis by the lang cat.

Close to half of the D2C platforms researched by the platform consultancy charged some form of exit fee for ISA transfers, while 87% did so for self-invested personal pensions (SIPPs). More than half also charged for stock transfers. By contrast, just 13% of adviser platforms levied exit fees for ISA transfers and stock transfers, and only a third charged for SIPPs. Lang cat research manager Steven Nelson said: "There is a lot of industry focus on things like super clean share classes and discounted fees. But, on average, that makes up a fraction of any portfolio, whereas the exit fee...