Renewal Commission Cashback Service

Cavendish Online's unique Renewal Commission Service will rebate the renewal commission on ISAs, Peps, Units Trusts, OEICs, VCTs and investment bonds (both With Profits and offshore bonds included). For information on moving pensions to Cavendish to reduce the charges, click here.

For moving Peps, ISAs and OEICs to Cavendish Online there are a number of options depending on how and where you bought the funds:
If you currently have a Fidelity Fundsnetwork plan held via another broker or directly with Fidelity then you simply need to complete a Change Of Agency letter and send it to Cavendish Online along with our fee of £20.00 per plan. You will retain the same online access that you currently have and nothing will change apart from the reduced charges.
If you currently have your Peps, ISAs or OEICs direct with the fund manager (e.g. New Star – via an IFA or otherwise) then you can either simply complete a Change Of Agency letter to move this to Cavendish Online or you may wish to move into Fidelity Fundsnetwork to further reduce the charges if you have more than one fund manager. The reason is that we charge our annual fee per plan, and so if for example you have plans with M&G, New Star, Jupiter and Invesco then we would charge a £10.00 annual fee against each of them (4 x £10.00), whereas if you moved all of these into Fidelity Fundsnetwork (retaining exactly the same funds) then we would only charge one annual fee of £10.00. To do this you will need to complete a Reregistration form pertinent to your plan type (Pep & ISA or OEIC available on our FAQs page). There are no fund related charges resulting from a Reregistration (no buying and selling costs) simply our fee of £20.00.
If you are currently with another fund platform or supermarket (there are only two – Cofunds or Hargreaves Lansdown’s Vantage scheme) then you would need to do a Pep or ISA transfer (forms available on the FAQs page). This will involve the sale of your funds by them and the cash transferred across to Fidelity Fundsnetwork. This means that you will suffer the relevant initial charge for the fund that you are going into and this can range from nil to 2.5%. Contact Cavendish Online to discuss this option in more detail.

The renewal commission on most of these investments is 0.5% pa of the value of the plan (where applicable), which is paid to the agent or IFA. We will retain the first £10.00 per annum per plan, and rebate ALL of the remaining commission to the plan holder, once a year. Clients do not need to send us the fee each year.

All new investments that are taken out via Cavendish Online will automatically enter this scheme, and our usual application charges apply, as shown on the relevant pages.

All existing plans that were arranged via Cavendish Online will automatically qualify for the service. Our existing clients need do nothing in respect of these plans.

If you want your existing investments to be included in the service, all you have to do is complete our Change of Agency form (HTML or PDF) for each plan and our Client Declaration, and send them to Cavendish Online, along with our entry fee of £20.00 per plan. Clients will continue to receive their statements from the investment companies and their existing service will not be affected by the change of agency.

Fundsupermarket
Click HERE for more details about the service, or HERE for the pdf version. This document forms a part of our terms and conditions.

Fee Structure

Benefits
We have calculated that our service will be advantageous for investors with more than £2,000.00 in their plan. We offer better value than our competitors for clients who have more than £4,000.00 in their plan. (Our nearest competitors return one half of the renewal commission or 0.25% - but this is for ISAs and Peps ONLY). Clients with less than £2,000.00 in their plan will be no worse off, as we do not charge the difference between the commission received and the £10.00 annual charge if less than £10.00 is received.

Example of how the renewal commission service can improve your investment returns.
These figures compare Cavendish Online with our nearest competitors, who rebate one-half of the renewal commission. The figures are based on 5% pa growth and assume renewal commission of 0.5% pa.

Initial investment: £5,000.00

Initial investment: £10,000.00

Initial investment: £50,000.00

FAQs

How do we offer this deal?
Cavendish Online was set up as a Fixed Fee Discount Broker. We remain the UK's only broker to work on this basis. Our clients do not cross subsidise other aspects of our business. We do not have a massive marketing budget, and we do not send monthly newsletters or offers to all of our clients, whether such marketing is relevant to them or not. This means that all of these savings are reflected in our extremely competitive charges.

How will this affect the relationship with my existing financial adviser?
This will depend on how you currently pay for your service. Your existing adviser will no longer receive this renewal commission. If you pay by fees, then there should be no difference. If you pay by commission, then you should consider how the transfer of this commission would affect the service from that adviser. We do not intend to undermine good relationships that clients may have with their financial advisers, although we are happy that clients may be made aware of how they may be paying for their service.

* Many brokers set up investment bonds so that they will receive 0.5% renewal commission each year. You should check whether this is the case for your bonds, and you can do so by contacting the insurance company concerned (e.g. Prudential). We cannot ask the company to start paying renewal commission retrospectively. We cannot be held responsible for changing the agency of investments that do not pay renewal commission, and we will not rebate our change of agency fees where we have done so.