Cavendishonline move to clean share classes and explicit platform fee.

Rollinghome

westy22 wrote: »

I haven't yet found an easy way of making such a nomination on the website though! I suppose I will have to send a secure message nominating a specific fund if the Cash Park option doesn't work.

This gives more info (though not on nominating a fund) https://www.fidelity.co.uk/static/pdf/investor/advised-client/New-investment-options-and-simpler-charging.pdf

10. When and from where is the Service
Fee collected?
The Service Fee is collected from your account
via unit deductions on or around the 15th day
of each month. The deductions are made
from the same fund your adviser’s fee is
collected from. If you have not nominated a
fund for this purpose, the fee will be collected
from your largest fund holding.

8. How is the Investor Fee collected?
For accounts in your sole name, the Investor
Fee is collected from a CashManager
Account. If a CashManager Account is
unavailable, or there is insufficient money
within it, the full fee will be collected
from one of your funds. The fee collection
hierarchy is as follows:
• Largest non-ISA fund holding
• Largest ISA holding (single Unit Trust/
OEIC/SICAV, including ISA Cash Funds)
• Investment Trust ISA
• SICAV (non-ISA)
• FundsNetwork Pension
For joint accounts, the Investor Fee is
collected from the largest fund holding within
the largest of the joint accounts relating to
each different group of account holders.


Which sort of suggests that if you hold anything outside of an ISA then your ISA funds won't be touched but still leaves some room for confusion.

jimjames

Rollinghome wrote: »

Which sort of suggests that if you hold anything outside of an ISA then your ISA funds won't be touched.

Thanks for that.

It also suggests that if you have a cash account with them then the fees can be taken from that which would be great.

JohnRo

Jim

Charles Stanley allowed me to pay back in to the ISA with new money to reinstate the value the platform fees had taken away. It's not ideal of course, a bit of a faff, but wouldn't Cavendish be obliged to offer something similar?

Earlier this month we ran the half year platform and custody fees which you can see on your online account statement.

We would like to draw your attention to the fact that HMRC permits you to return funds to your ISA to cover your fees, over and above your annual ISA subscription allowance. Thus, should you wish to preserve the full value of your account, you may wish to re-credit the amount of fee which you have been charged.

Please note that the minimum debit card payment you can make through the site is £10. If your fee is less than this amount, you would instead be welcome to send us a personal cheque, made payable to “Charles Stanley Direct”.

The final date for receiving payments to cover the fee is Friday the 15th of November so if you are paying by personal cheque, please ensure that it reaches us prior this date.

Best Regards,
Charles Stanley Direct

Chickereeeee

So now there is no difference between going via Cavendish Online or direct via Fidelity to access the Fundsnetwork - apart from the £48 annual fee?

As Cavendish only 'front' the platform. I wonder how they now make their money?

dunstonh

As Cavendish only 'front' the platform. I wonder how they now make their money?

Maybe a cut of the platform charge. Although that could be classed as an undisclosed commission and probably fall foul of the principles of the review unless it white labels it to be its own platform.

The FCA has just started a review into the DIY offerings. It will probably find some deals that need changing just as it did on the advised side.

grizzly1911

Chickereeeee wrote: »

So now there is no difference between going via Cavendish Online or direct via Fidelity to access the Fundsnetwork - apart from the £48 annual fee?

As Cavendish only 'front' the platform. I wonder how they now make their money?

In the "old world" they took a small percentage of the fee, 0.05 with the remainder 0.20 going to FundsNetwork. No doubt somewhere in fine print they will disclose the separation going forward.

What will happen to the initial fees if you wanted to purchase direct with a fund manager? What would stop you dealing direct if they are removed apart from the hassle?

IronWolf

How can you tell if you are better off sticking with bundled or moving to unbundled? I hold 1 fund with Cavendish which isn't ISA wrapped.

Chickereeeee

dunstonh wrote: »

Maybe a cut of the platform charge. Although that could be classed as an undisclosed commission and probably fall foul of the principles of the review unless it white labels it to be its own platform.

The FCA has just started a review into the DIY offerings. It will probably find some deals that need changing just as it did on the advised side.

As you say, that does not look like the transparency the reform was looking for.

As I have a fair amount with Fundsnetwork, it is looking a bit like I might be better off moving back to Fidelity direct, as they have (had?) a 'Premium Service' or whatever they call it., which was not worth paying for, but if the charges are now the same...?

westy22

Chickereeeee wrote: »

which was not worth paying for, but if the charges are now the same...?

Well, that may be true for future purchases but any legacy funds remaining on the platform will still benefit from being rebated for the next 2 years.