F&C Childrens Investment Plans - New Charges

Cliffo

Tammer wrote: »

Hi Cliffo,

That doesn't matter though. Your application form, key features and terms and conditions you have from F&C form the basis of your contract with them. Do they allow f &c to introduce a new charge?

Tammer, although previous T&C booklet says nil annual charge for the Shares CTF (nb. also nil for the PIP, CIP accounts but £25+VAT for JISA, 0.7% for Stakeholder CTF and £60+VAT for ISA). However, it also says "F&C may for valid reasons, amend, alter or add to the T&C from time to time and will give 28 calendar days notice..."

RubyBish

Just got an email circular from F&C with the slogan:

"Thinking ISA. Think F&C."

I think not.

RaspberryFool

RubyBish wrote: »

Just got an email circular from F&C with the slogan:

"Thinking ISA. Think F&C."

I think not.

Well, it sounded a bit like "F&C" ;-)

Tammer

Cliffo wrote: »

Tammer, although previous T&C booklet says nil annual charge for the Shares CTF (nb. also nil for the PIP, CIP accounts but £25+VAT for JISA, 0.7% for Stakeholder CTF and £60+VAT for ISA). However, it also says "F&C may for valid reasons, amend, alter or add to the T&C from time to time and will give 28 calendar days notice..."

Hi Cliffo,
In my view, that last statement gives F&C a lot of power at the expense of the consumer and therefore does not comply with Unfair Contract terms regulations. I would think that would mean that you would be able to argue that the exercising of that term could be ignored and therefore the new charge is invalid.

I would suggest a complaint to F&C along those lines might be in order.
T.

Cliffo

Tammer wrote: »

Hi Cliffo,
In my view, that last statement gives F&C a lot of power at the expense of the consumer and therefore does not comply with Unfair Contract terms regulations. I would think that would mean that you would be able to argue that the exercising of that term could be ignored and therefore the new charge is invalid.

I would suggest a complaint to F&C along those lines might be in order.
T.

>>>from OFT...

5 March 2013

Dear Mr xxx

Unfair Terms in Consumer Contract Regulations 1999 (theRegulations)

F&C Child Trust Fund

Thank you for copying your email of 3 March 2013 to the Office of Fair Trading (OFT) regarding your complaint about new F&C Child Trust Fund annual charges. I believe the CTFis a regulated product so FSA for wider concerns.

By way of background the primary duties of the OFT include the enforcement of competition law, and the application of consumer protection legislation in respect of matters that adversely affect the collective interest of consumers. However, the OFT has no power to intervene in individual disputes or seek redress on behalf of consumers, and therefore we are unable to assist you directly in this matter.

You may wish to contact the Financial Services Authority (FSA) for individual dispute. The FSA is an independent and non-governmental body given statutory powers to regulate most financial services markets, exchanges and firms.

It can be contacted at the address below:

Unfair Contract Terms Team
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS

Please note that the FSA do not have the power under the Regulations to intervene in your individual dispute but you can ask the Financial Ombudsman Service to adjudicate if the company was unable to resolve matters to your satisfaction directly. Their address is:

Financial Ombudsman Service
South QuayPlaza
183 Marsh Wall
London E14 9SR
Tel: 0845 0801800
Website:www.financial-ombudsman.org.uk

Yours sincerely

Not_pleased

Surely the underlying companies being invested in, which are plcs in their own right, need to agree to these changes as F and C says they are currently bearing the costs in their letter to us?

In other words, F and C is passing a cost now on to us that is currently borne not by F and C but by independent companies that are what is actually being invested in, if that makes sense? Surely further grounds for them to reconsider?

atush

The underlying assets are F&C investment trusts. All from the same stable.

Not_pleased

Yes, true, but in theory independent companies who have appointed f&c to invest the money? And we're the shareholders, I believe. Have the companies formally agreed to these changes, were they consulted, are they even aware this issue has arisen? I don't recall seeing anything about this in the last shareholder comms and the companies are paying F&C a fee for admin services which should surely be reduced as a result of all this. I can think of two investment trusts who have changed their money managers in recent times.

Not sure if this line on enquiry is a goer or not but think I'll write to the boards to see if they were consulted.

Biggles

Not_pleased wrote: »

Yes, true, but in theory independent companies who have appointed f&c to invest the money? And we're the shareholders, I believe. Have the companies formally agreed to these changes, were they consulted, are they even aware this issue has arisen?

I'm afraid that's probably not relevant; using your own logic, it's like asking whether Vodafone has approved the charges of your independent stockbroker.

atush

I have investments in a trust, that did change the bank that oversaw the investor plan and that was changed. But it was handled amicably in house so makes me think it was undisputed?


So that bit, if enough shareholders rebel, can be changed I would think.