Well after being a customer of eTrade for over 10 years it looks like I will need to get used to a new execution only broker. Yes, Etrade have, as a result of a strategic review, decided to pull out of the UK execution only broking business. Presumably lower volumes due to the world-wide recession, coupled with volatile markets, have made their business unprofitable. I seem to recall stories about their parent company suffering as a result of the credit crunch so I guess they have taken the opportunity to free up some capital and get out!
Anyway, my SIPP (together with a couple of self-select ISAs) will be automatically transfered to TD Waterhouse “over the next few months”. All a bit vague at the moment but I guess I need to have faith that the transfer will go smoothly.
I have had a quick look at the TD Waterhouse website and, I must admit, it looks good! in fact the look and feel is nicer than the Etrade one.
The charge per trade depends upon your monthly transaction volumes but looks to be in line with eTrade. Hopefully the reduced competition will note allow an increase in charges to customers. Lets wait and see!
Power that corrupts
When it comes my investment decisions, the one big corporate no-no is corruption, or even the whiff of corruption. I will never invest in a company with weak moral standards. I once had shares in ICAP but I would never consider it again (at least not under current management).
For readers who are not aware, the largest single shareholder in ICAP ( a gentleman called Michael Spencer) managed to offload £45m of shares a month before ICAP announced a profit warning. Apparently Michael Spencer had no idea that profits would be down! C’mon Michael we are not idiots. I have spent the last 20 years working in finance departments of large City businesses. Forecasting is the key skill of these businesses. You knew what was happening.
Lets hope the FSA throw the book at him. Lets hope David Cameron throws the book at him (Michael also happens to be the Conservative Party Treasurer – a position that requires good numbers skills, no?). The moral standing of both these organisations will go down if they turn a blind eye. Lets wait and see if they have the cojones!
Anyway, those people that bought the shares from Mr Spencer (perhaps your pension fund) are down about a third of their investment. We should all be angry about this even if we are not shareholders in the company.
I read today that this is not the first time that Michael Spencer or ICAP have been implicated in wrong doings. They have got away with it in the past and probably will this time. But there is no smoke without fire. I for one will not be touching this company in the future or any others that Mr Spencer is involved in.
This episode has encouraged me to start reporting on corporate wrong doings. I have seen a few in my times and continue to see powerful people abusing their power – through expenses, self-serving corporate policies, dis-respect etc….
I would also love to have any stories from readers. Lets expose them and, at the same time, celebrate examples of good corporate behavior. Please join in!