What is the pension migration?

FundsNetwork migrated the vast majority of our clients' FundsNetwork Pensions to their new platform over the weekend of June 22nd/23rd 2019. We have listed below some questions and answers, please do contact us if you require any additional information.


Frequently Asked Questions:

Was my pension migrated on the weekend of June 22nd/23rd 2019?

Some pensions were not migrated, we understand from FundsNetwork that generally this will have been if you had any ‘in-flight’ transactions. By this FundsNetwork mean that there is a transaction on your pension that has been placed in the last week or two and that has not yet fully settled. If this is the case then FundsNetwork will attempt to migrate your pension in the coming weekends. If there are ‘in-flight’ transactions on your pension every weekend, eg if you regularly place deals on your pension, FundsNetwork will between July 10th 2019 and July 21st 2019 place a block on your account so that the migration can proceed. FundsNetwork will remove the block on any affected accounts on July 22nd 2019.

How will I know if my pension has been migrated?

Prior to the migration FundsNetwork called all pensions 'FundsNetwork Pension Uncrystallised'. After migrating your pension to the new platform FundsNetwork will call your pension a 'Pension Savings Account', if you see this then you will know that your pension has been migrated.

What changes will I see after my pension has been migrated?

You should not see too much of a difference after the migration has completed. The login process will be identical and your existing pension account number will stay the same. You will still place any deals from the Cavendish Online website, ie FundsNetwork will not let you place any deals after logging in to your account, although we will continue to discuss this with them.

What about dealing fees?

Any deals in unit trusts or OEIC’s will continue to have no dealing fee. However FundsNetwork are introducing a change to dealing fees on Investment Trusts (IT’s) and Exchange Traded Funds (ETF’s).

Currently any ad-hoc deals (ie buy or sell) that you place on your pension in IT/ETF products incur a dealing charge of 0.1%. After your pension has been migrated this will change to a fixed fee of £3 for any new contributions or £1.50 for any switches into or out of an IT/ETF. If you requested to switch out of one IT/ETF in to another IT/ETF, you would be charged a total of £3, ie £1.50 to switch out of the IT/ETF and £1.50 to switch into the other IT/ETF.

If you have any regular investments into IT/ETF products in your pension these currently incur a dealing fee of 0.1% and this will change to £1.50 for migrated accounts. Regular investments are monthly savings plans, dividend reinvestments and tax relief.

At what time will IT/ETF deals be placed?

Pension deals in IT’s and ETF’s are aggregated and placed twice a day by FundsNetwork, generally at 9am and 3pm, they are not placed in real time.

What if I currently hold fractions of a share of an IT/ETF?

If prior to migration you held an IT/ETF this may have included a fraction of a share, as part of the migration to the new platform the fraction will be sold and the proceeds will be credited to your Pension cash balance. For example, if you held 100.6 units in an ETF, 0.6 of a unit would be sold as part of the migration and the sale proceeds will be added to your pension cash balance. FundsNetwork will not charge you a dealing fee for selling this fractional share.

Will I be able to buy individual company shares?

FundsNetwork will be making shares available in the pension in the near future, we will email you when we know more. These will incur the same dealing charges as for IT/ETF products, ie £3 for a buy/sell and £1.50 for switches and regular investments such as monthly savings plans, dividend reinvestments and tax relief.

New bank details for FundsNetwork

If you make any new ad-hoc contributions into your pension you will be prompted to pay these to FundsNetwork’s new bank account. If you already have FundsNetwork’s bank details saved then please do amend these as follows,

Bank: Barclays Bank
Sort Code: 20-93-32
Account Number: 33039005
Reference: Your National Insurance number

Investment Income options

Prior to migration any income from your pension holdings could only be held as cash in your pension . After your pension has been migrated you will have the option to request FundsNetwork to reinvest income back into the original investment. In order to do this please log in to your account and send a Secure Message to FundsNetwork requesting them to amend your pension so that income is reinvested. Alternatively you can contact Cavendish Online and request us to amend your pension so that all income is reinvested, please use the Contact Us form to request this.

FundsNetwork will be looking to enhance this in the future so that you can amend income settings when you log in to your account.  We were under the impression that this would be available immediately after migration but have now been informed by FundsNetwork that this is not the case.

Interest on cash balances

Prior to migration FundsNetwork paid interest of 0.25% per annum on any cash balances in the pension. Post-migration this will change to 0.00%. Please do be aware that FundsNetwork will no longer charge their Service Fee of 0.20% per annum on any cash balances held, although Cavendish Online will continue to receive 0.05% per annum on everything that you hold in the pension including cash balances.

Performance/Total Return figures

FundsNetwork will soon start to show performance/total return figures for Pension accounts. They will not be available immediately after migration but we have been informed that these should be shown by the end of July 2019.

Tax relief strategies

FundsNetwork will change the tax relief strategy so that post-migration this is invested into whichever investment generated the tax relief. This will be the case even if you have since sold that investment. Eg if you make a personal contribution into fund x and you sell fund x a few weeks later, when you receive the tax relief a couple of months later this will be credited to fund x.

Multiple regular contributions

Prior to migration you could have regular contributions into your pension from up to three sources, ie from your own personal bank account, from your employer and from a third party. These could go into different investments, eg your personal contributions could go into fund a & fund b and your employer contributions into funds y & z. Post-migration you will only have one selection for all, eg fund a & b for both your personal and employer contributions. We believe that FundsNetwork will already have contacted you if you are affected by this.

Automatic increase of regular contributions

You have previously been able to request that any regular contributions increase by a set percentage every year. This will not be possible with the migrated pension so if you wish to increase you will simply need to submit a new instruction from the Cavendish Online website that will replace your existing instruction.

How will I know what tax relief is due to me from HMRC?

On the old platform FundsNetwork showed any tax relief due (but not yet received) from HMRC within your cash balance and this could cause confusion as to how much 'cleared cash' you actually had available to invest. With the new platform any tax relief due to you will not be shown in the cash balance which should help to avoid this confusion. You will however still be able to view any tax relief due to you if you view your recent transactions. This will be shown with a status of 'Pending' while it is due from HMRC and 'Completed' when it has been recieved from HMRC. The tax relief will then be invested as per the original investment that generated the tax relief.

If you have any further questions then please don’t hesitate to Contact Us