F&C Childrens Investment Plans - New Charges

cloud_dog

For all those who don't want to pay the annual charge and invested in one or more of the F&C ITs you may want to look at transferring to Self Trade.

My DD CTF is with Self Trade and a while ago they started charging AMC on accounts but specifically excluded CTF accounts.

You'd need to contact them to see if they still accept transfers in but assuming they do you can either transfer the F&C IT holding across as is or as cash and pay the dealing charge of £12.50 per trade. There's no need to transfer as cash (assuming ST list the F&C IT you hold) but you may want to use it as a re-balancing exercise etc.

I know the dealing fee is relatively high but if you are just looking for a low cost home then this might be worth investigating.

snowcat53

Cloud dog -thanks for the info on selftrade.
I checked that they don't charge their inactvity fee for CTFs , so good.

But
How much do they charge for holding funds? -ie how much do they rebate of what they receive from the fund ?

If you hold ETFs or ITs do you have to pay the standard dealing fee to reinvest dividends? That would be very costly if done monthly

cloud_dog

snowcat53 wrote: »

But
How much do they charge for holding funds? -ie how much do they rebate of what they receive from the fund ?

To purchase a fund is free but their standard £12.50 dealing charge exists when selling funds. They discount purchases but I cannot find mention of any trail commission rebate.

So you may wish to consider the £12.50 selling fee and trail commission rebate (or lack of it). But, there isn't an AMC as with a number of others.

snowcat53 wrote: »

If you hold ETFs or ITs do you have to pay the standard dealing fee to reinvest dividends? That would be very costly if done monthly

Have a look at their dividend reinvestment plan, charges are £1.50. On the right hand side of the linked page there is a list of investments covered by the plan.

I'm not advocating Selftrade it was merely that depending on circumstances it might suit some people.

snowcat53

Yes it's a possibility but clearly cost depends on how often you would switch and trade. I think I will take the 40 pa F&C hit given ny son's CTF is over 15k now and I'm happy with the funds they offer.

Just heard Martin on 5 live berating the Govt for not getting on and amalgamatng CTFs and JISAs..

snowcat53

sterlingstash wrote: »

Great graph Snowcat. The question is whether outlook for global smaller companies remains strong, or whether the new charges may be a blessing in disguise by prompting a switch to lock in the recent gains...

Well that depends on how you see the world economy going.! It clearly is higher risk and more volatile but I'm going to stick with it, split with the Foreign & Colonial IT..

Biggles

sterlingstash wrote: »

Great graph Snowcat. The question is whether outlook for global smaller companies remains strong

Yes, it's nice to have your investment decision (I bought two tranches in July) borne out in such a nice graphical fashion :-)

I shall stick with it for the same reasons I bought it: well-chosen smaller companies will always do well, the global spread gives a little diversity and, what I like most, they can invest in private equity companies, which, of course, I can't do directly.

Biggles

cloud_dog wrote: »

For all those who don't want to pay the annual charge and invested in one or more of the F&C ITs you may want to look at transferring to Self Trade.

Selftrade still don't seem to be taking on any new customers. But the inactivity fee is £10.50 a quarter if it's not a CTF and dealing £12.50, so I wouldn't really be any better off than F&C.

I'm still pondering my options.

cloud_dog

Biggles wrote: »

Selftrade still don't seem to be taking on any new customers. But the inactivity fee is £10.50 a quarter if it's not a CTF and dealing £12.50, so I wouldn't really be any better off than F&C.

I'm still pondering my options.

True. Apologies, I was side-tracking for CTFs.

Tammer

malfesto wrote: »

Anyone who wants to leave the Savings Plan in response to changes in Terms & Conditions that F&C has made, the law (specifically the Unfair Terms in Consumer Contracts Regulations 1999) and the FSA's guidance on Unfair Contract Terms is perfectly clear on this. F&C will have to waive exit charges and allow reasonable time for anyone who wants to dissolve the contract in response to the unilateral changes in the T&Cs.

I have made a formal complaint to F&C pointing out this aspect of the law to them and am currently awaiting their reply. If they still want to impose exit charges, I'll be escalating the complaint to the Unfair Contract Terms Team at the FSA and the Financial Ombudsman Services.


I suggest that anyone who wants to leave without paying the exit charges, raise a formal complaint to F&C through the complaints process. Any rejection of the complaint by F&C can then be referred to the Ombudsman who will no doubt uphold the complaint on a point of law.

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What are the exit charges?

margaretclare

Just got the letter(s) informing me of this. Have asked to close both accounts forthwith. As they only have £25 in each account I may or may not get it back. Will think again.