Fundsnetwork Investments Renewal Commission Cashback Service

Cavendish Online's unique Renewal Commission Service rebates the renewal commission on ISAs, OEICs and the SIPP. For information on moving your pension to Cavendish Online to reduce the Annual Management Charge, click here.

There are a number of options for moving ISAs and OEICs to Cavendish Online’s unique 100% commission rebate service, depending on how and where you bought the funds:

If you currently have a Fidelity Fundsnetwork investment, 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 one off application fee of £25.00 per plan. You will retain the same service and online access that you currently have with Fidelity and nothing about your investment will change. We will arrange for Fundsnetwork to send you a form to complete with your bank details and start to credit your account with your commission on a quarterly basis.

If you currently hold your ISAs or OEICs direct with the fund manager (e.g. Jupiter/Invesco – via an IFA or directly) then you may wish to Reregister the investment into Fidelity Fundsnetwork because we do not apply our £10 annual fee to commission paid out on investments within Fundsnetwork. You would receive 100% of the commission paid. To do this you will need to complete the correct Reregistration form for your plan type (ISA or OEIC, available at the bottom of our FAQ's page). There are no fund related charges resulting from a Reregistration (no buying and selling costs) simply one fee of £25.00 per reregistration. We will arrange for Fidelity to send you a form to complete with your bank details and start to credit your account with your commission on a quarterly basis.

If you are currently with another fund platform or supermarket (E.G. Skandia or Hargreaves Lansdown's Vantage scheme) then in order to move the plan into Fundsnetwork you would need to do an ISA transfer (forms available on the bottom of the FAQs page). Please contact Cavendish Online if you have a Cofunds plan. The funds will be sold and the cash transferred across to Fidelity Fundsnetwork to be reinvested. 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%. Details of these charges can be found on our Fund Discounts page. We charge a one off fee of £25.00 for each reregistration and we will arrange for Fundsnetwork to send you a form to complete with your bank details for your quarterly commission payments.

The renewal commission paid on most of these investments is 0.5% pa of the value of the plan (where applicable). This will be paid to you by Fidelity Fundsnetwork only if you are a Cavendish Online client. We are proud to be the first and only company in the UK offering a full 100% commission rebate on all Fidelity Fundsnetwork investments.

All new Fundsnetwork investments taken out via Cavendish Online will automatically enter this scheme. Our usual one off application charges of £25 or £50 (SIPP) apply.

Fee Structure

Benefits

Fundsnetwork clients will all be better off when buying through Cavendish Online, regardless of the size of their funds.

Non-Fundsnetwork investors with more than £2,000.00 in their plan would be better off using Cavendish Online. Non-Fundsnetwork investors who have more than £4,000.00 in their plan would be better off using Cavendish Online than our nearest competitor. (Our nearest competitors return one half of the renewal commission or 0.25% - but this is for ISAs and OEICs ONLY). Clients with less than £2,000.00 in their plan will be no worse off appointing Cavendish Online as their advisor, 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 both Cavendish Online commission rebate systems with our nearest competitors, who rebate only one-half of 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.