Cavendish Investments statements

homerhotspur

Does anyone know why their accounts are split into 2 categories ' Commision and fees'. There is absolutely no distinction in the way I bought the funds( all self selected) but they seem to have been split approx 60-40 and I have just had a letter from Fidelity using the 60 part as the figure on which annual charges will be levied. I can't see why it wouldn't be on the whole 100%.

Chickereeeee

Just guessing, but presumably you bought the holdings over a few years, and have a mix of dirty and clean funds (or had some dirty funds cleaned).

You will be paying explicit platform fees on the 60% (clean) funds, while the fees will be part of the annual charge in the 40% (dirty) funds.

The dirty funds have a higher stated annual charge than the clean ones.

C

homerhotspur

You may be right, although I did go through a transfer process a few months ago so that all funds are now in the ' clean' class so I would have though any such distinction would have ended. I will ask CI direct.

Chickereeeee

There are some funds (eg HSBC Index trackers) that are more expensive in their clean form than their dirty one. Fidelity would have left these as dirty for now.

C

homerhotspur

Well I got the official answer(see below). I still don't get it as I have never had advice as such, just used Cavendish as the platform so what is the distinction and , if it is the clean/dirty split, why is that ongoing after they were all converted together?

Following the Financial Conduct Authority's Retail Distribution Review (RDR), all ISA investments are now categorised as follows:

ISA Fees - If an investment is made through an adviser, with advice given, the holdings will be placed in this category. Financial advisers have the option to move the previous investments (known as 'Legacy Assets') into this category following agreement with their clients. Advisers may charge an initial fee for all new ISA purchases.
ISA Commission - If an investment is made through an adviser, but no advice is given, the holdings will be placed in this category. Financial advisers will continue to take commission on the investments.
ISA Direct - Any investment made directly with Fidelity, without an adviser, will be placed in this category.
All investments made prior to 6 April 2013 will be held in the plan years in which the money was invested. For example, 2012 ISA; 2011 ISA etc. If a switch is placed in the 'Legacy Assets', all the holdings will move from individual plan years into one of the categories mentioned above depending on whether the transaction was advised, not advised or direct.
For your account, the investments are partly held in the ISA Direct component and remaining holdings in the ISA Fees component.
All future investments will go in the above categories depending upon the way you choose to invest.

Chickereeeee

You previously said the statement was split between Commission and Fees headings, but your last post implies it is actually split between Direct and Fees headings.

If ALL investments were made via Cavendish, I believe they should all be under either Fees (if clean) or Commission (if dirty). See my previous reply as to why some funds may be still Dirty.

If you have some under Direct, I would guess these have not been done via Cavendish.

Give Cavendish a phone call, they are usually very helpful.

C

vectistim

Every now and then I end up with something in the Direct account rather than the Fees account, and I just send Fidelity a message to switch it into the Fees account.