Commfreefunds closure, RDR etc

anselld

Hi,
I have funds ISA currently on Cofunds platform with discount broker Commfreefunds.

As a result of RDR they are transferring all business to hunter Barrington Ltd.

I am totally confused about RDR, bundled/unbundled pricing and how this will affect trail commission discounts on existing investments.

The question is what is the best way to proceed? Sign the paperwork for the transfer to HB or use the opportunity to transfer elsewhere?

I just want the cheapest overall execution-only service.

Thanks.

xylophone

Have a look at Cavendish?

http://www.cavendishonline.co.uk/investments/move-your-investment/

dunstonh

I am totally confused about RDR, bundled/unbundled pricing and how this will affect trail commission discounts on existing investments.

There are two things happening. RDR and platform review. RDR in Jan 2013 and platform review is not set but running a year late (it was meant to be same time originally).

RDR stops trail on advised business but not non-advised. Platform review proposes removal of all other hidden commissions which get paid to the platform.

I just want the cheapest overall execution-only service.

For commission paying funds or non-commission funds?

anselld

xylophone wrote: »

Have a look at Cavendish?

http://www.cavendishonline.co.uk/investments/move-your-investment/

I like Cavendish, my wife is with them, but they have stopped accepting transfers on the Cofunds platform. I am not sure if it would be cost effective to switch platforms.

anselld

dunstonh wrote: »

There are two things happening. RDR and platform review. RDR in Jan 2013 and platform review is not set but running a year late (it was meant to be same time originally).

RDR stops trail on advised business but not non-advised. Platform review proposes removal of all other hidden commissions which get paid to the platform.

For commission paying funds or non-commission funds?

Thanks dunstonh. I guess they must be commission funds as I am currently getting trail rebates. They would have been non-advised when purchased as they were all purchased via cofunds/execution only discount broker.

xylophone

stopped accepting transfers

You can't transfer in specie (re-register) but could in cash and buy the same funds if you wish?

http://www.cavendishonline.co.uk/investments/move-your-investment/currently-not-with-fidelity/

If your funds are currently on another platform such as Skandia, Cofunds, Hargreaves Lansdown Vantage, Interactive Investor (iii) or Bestinvest or with another broker such as Chelsea or Chartwell using Cofunds then you will be able to carry out an ISA transfer from these schemes into the Cavendish Online FundSupermarket to reduce your annual charges. In the majority of cases you will not incur exit charges from your existing provider but click here if you'd like more details.

These other platforms / brokers are direct competitors to the Cavendish Online FundSupermaket and therefore do not currently offer the re-registration facility for ISAs.

anselld

xylophone wrote: »

You can't transfer in specie (re-register) but could in cash and buy the same funds if you wish?

http://www.cavendishonline.co.uk/investments/move-your-investment/currently-not-with-fidelity/

If your funds are currently on another platform such as Skandia, Cofunds, Hargreaves Lansdown Vantage, Interactive Investor (iii) or Bestinvest or with another broker such as Chelsea or Chartwell using Cofunds then you will be able to carry out an ISA transfer from these schemes into the Cavendish Online FundSupermarket to reduce your annual charges. In the majority of cases you will not incur exit charges from your existing provider but click here if you'd like more details.

These other platforms / brokers are direct competitors to the Cavendish Online FundSupermaket and therefore do not currently offer the re-registration facility for ISAs.

Thanks, yes I saw that. But would that be the most cost effective? ie I would be exiting the CoFunds platform if I did that so I would then have free choice of ...
platform / unbundled
existing / "commission-free" or "clean funds"

If I switch to Cavendish I would be just be ploughing everything back into a different fund platform (Fidelity) and I don't understand enough about the other options above to know what is best.

xylophone

http://www.cavendishonline.co.uk/investments/faqs/
http://www.cavendishonline.co.uk/investments/RDR
might help.

anselld

xylophone wrote: »

http://www.cavendishonline.co.uk/investments/faqs/
http://www.cavendishonline.co.uk/investments/RDR
might help.

Thanks. All adds to the mix of options!

Based on this ....
http://www.candidmoney.com/guides/3/guide-to-isa-discount-brokers

... my best option if I am prepared to come off Cofunds platform would be Interactive Investor, or if I want to stay with Cofunds it would be Clubfinance.

However, I cant work out how this will all change as a result of RDR and I don't really want to switch and then find I have jumped in the wrong direction.

grey_gym_sock

actually, interactive investor appear to use cofunds, too.

they rebate 100% the trail commission, and 100% of their share of the platform commission. cofunds keep the rest of the platform commission.

see
http://www.iii.co.uk/funds-rebate-explained
http://the-international-investor.com/comparison-tables/uk-fund-supermarket-comparison-table
http://the-international-investor.com/2012/unbundled-pricing-uk-fund-supermarkets

Michael_Nottingham

I thought III had their own platform now?