A question about : Cavendish Online & Fidelity FundsNetwork Ј45 Account Fee
Just in case anyone else comes across this confusing information from Cavendish Online and the Fidelity FundsNetwork platform where, when you login to your account, it states that your 'advisor' has opted you into the Account fee (when really is hasn't).
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Cavendish website states 1/10/13
cavendishonline.co.uk/investments/
“The Cavendish Online FundSupermarket (powered by FundsNetwork™) will have no other charges than the Annual Managment Charge (AMC) applied to the selected fund and all trail commission will be rebated. As a result of this new facility, Cavendish Online customers will now benefit from:
· NO initial charges on all funds
· NO switching fees
· NO Cavendish Online fee
· 100% rebate of natural trail commission
“
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Fidelity FundsNetwork states 1/10/13
fidelity.co.uk/investor/products-services/investment-options/account-fee-adv.page
· Annual fee of Ј45 per annum (Ј22.50 collected half-yearly)
· No initial charges on lump sum and Monthly Savings Plan investments submitted online
· No switching fees on all transactions submitted online
· Qualifying investments include ISAs (including paper transfer applications) and mutual funds held outside of an ISA
· One fee payment covers all of your accounts on which you receive advice (single and joint)
· Once your Adviser has informed us that you wish to pay the · Account Fee you will enter a cooling-off period during which you can change your mind.
· After the cooling-off period has ended you will not be able to switch out of the Account Fee and opt to pay our alternative Initial and Switch Charging pricing option.
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Cavendishes response 1/10/13 :
I am sorry for the confusion caused by the information on the Fidelity FundsNetwork website.
Cavendish Online have special terms with Fidelity FundsNetwork to other brokers which means all our clients get nil initial charges and the free switching without having to pay Fidelity FundsNetwork’s Ј45.00 annual fee.
The information on the Fidelity FundsNetwork website is only applicable to clients using a financial advisor other than ourselves but I can appreciate that this is confusion, but Fidelity FundsNetwork have not produced special information that just relates to our clients.
Best answers:
- Cavendish is the 'cheapest' atm because it has no overheads. It uses the Fidelity platform and has low number of staff. It receives the AMC, but only takes a very small percentage of that because it doesn't need it all to cover its costs/turn a small profit!
Things will most certainly change from April next year... - Seems the discount of the Ј45 investor fee has come to end.according to an online document received today.
- I received this online document from Cavendish online today as well saying the investor discount of Ј45 has come to an end. Does this mean that Fidelity will be taking the Ј45 per year charge from my portfolio then or Cavendish will? Does this mean that Cavendish is no longer one of the cheaper platforms?
- I had the same online document today. From FundsNetwork.
- The Cavendish website still says:
Quote: - Cavendish have responded to me to say that "We raised this as an urgent issue with Fidelity yesterday ..... we fully expect you to receive an apology from Fidelity soon".
So fingers crossed.... - Good news- Fidelity have also now confirmed that this was in error (via secure message to me).
- Phew! Glad this has come up. I was trying to find the message to post on here.
- I notice that the online document posted yesterday about the Ј45 investor fee has today been removed from my account.
- Today I've received 2 letters in the post from Fidelity.
One dated 17th Feb telling me I'd now be charged Ј45.
Second dated 19th Feb saying the first letter was wrong and I'd not be charged.
Nice to see RM are able to deliver in the correct order. - I received the same two letters today. Glad they acknowledged the mistake.
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