MSE News: Blow for 60,000 F&C child trust fund holders

Reaper

jimjames wrote: »

Except that it isn't just CTF that this affects as per post #2. We can move elsewhere but if all providers do the same thing then we will have to think again about options. Saving £25 per month is not effective when the charge is £30 per year.

Yes, non-CTFs are affected too. Baille Gifford is a good alternative to switch to for them, but as you say there is no guarantee they won't impose charges too.

martinman3

Reaper wrote: »

Yes, non-CTFs are affected too. Baille Gifford is a good alternative to switch to for them, but as you say there is no guarantee they won't impose charges too.

If you ask B.G they will tell you that they have no plans to introduce a management charge on their Childrens Saving Plans.
http://forums.moneysavingexpert.com/showpost.php?p=59283791&postcount=62

Although F&C and B.G. have similar savings plans the two companies are very different. From my layman's perspective F&C is a ltd co. with shareholders to please, is going through a lot of change and is shrinking. B.G. is a partnership with no external shareholders and can do what is best for the company.
I hope that B.G. will see that such a charge would be bad for their business.

neet

Sadly this hasd been spread over 3 forums - but my suggestion elsewhere is top complain - standard contracts must be fair and in this context £30 is not.

neet

ps BG manage much very well but the law defines a partnership very clearly " a partnership consists of two or more persons carrying on business in common with a view to profit"

wishitwassimpler

Please please complain if you are affected. 60,000 account holders are not to be sniffed at if a good proportion do go ahead and complain or better still move their accounts. We have four affected accounts with multiple shares in each so will have to pay £12 +VAT for each pot of shares in each account to close it down despite the fact that the increase in charges for the Children's Investment Plan from 0.2% dealing price to £25 +VAT per year plus £12+ VAT for each lump sum will be a more than 400% increase in charges for us per account.

The most galling thing is vast amount of unsolicited shiny brochures, excess duplicate forms and free post envelopes they send us on a regular basis.... cut the volume of expensive junk mail and there would be no need to introduce admin charges!!!!

Better still we were sought advice over the phone for one of these accounts just a month before the change and the only found out about the changes 10 days after the cooling off period... MIS SOLD!

Please complain it is the only way us small investors will be heard!

dunstonh

cut the volume of expensive junk mail and there would be no need to introduce admin charges!!!!

So, where would they make their money post platform review and RDR?

Better still we were sought advice over the phone for one of these accounts just a month before the change and the only found out about the changes 10 days after the cooling off period... MIS SOLD!

F&C don't supply advice.

innovate

Surely F&C are missing a trick if they p*ss of a whole generation of potential investors?

dunstonh

innovate wrote: »

Surely F&C are missing a trick if they p*ss of a whole generation of potential investors?

The numbers are tiny in comparison to their market. Plus, the beneficiaries are children who will know no different.

(I am posting partly as devils advocate in my posts on this thread - although the issues of retail distribution, explicit charging and reduced cross subsidy is a known issue for smaller investors. F&C are altering their charges but others have pulled out altogether)

innovate

If F&C decimated my child's money by being obscenely greedy, I would make damn sure that my child will know the details when they are old enough to make their own investments.

I would agree, the numbers of the CTFs will be tiny in comparison to their other markets. Which makes it all the more obscene to lump such comparatively massive charges onto it.

If F&C had a shred of social responsibility, they would have joined forces with other providers and lobbied the Government to allow CTFs to be transferred into JISAs.

Growingmyown

My son's trust fund is with Witan (their Jump fund). They introduced a £36 annual charge in October 2012. I am trapped. I could transfer to a stakeholder fund, but I think I will sit tight and hope that the government listens to the howls of protest from parents. We have to be allowed to transfer to the junior ISAs.