Investors face extra costs due to consolidation flaw

By Ruth Alexander and James Phillipps Pep consolidation is costing investors up to 5% to 6% of their combined tax-free investments due to the need to encash their investments before moving them to be held under one banner. Many fund managers and fund supermarkets are unable to handle so-called in specie transfers, which is when a client moves assets directly from one investment fund to another. As of the 6 April investors have been able to consolidate their Pep and Isa holdings. However, because of administration difficulties in handling transfers, investors looking to consolidat...