Renewal Commission Rebating

sanjaymaz

I've just discovered a company called called Cavendish (www.cavendishonline.co.uk) which says that it will rebate the renewal commissions it receives on ISA, PEP, unit trust and investment trust holdings for a fee of £10 per year per fund and a one off set up of £20 per fund.

I want to know if anyone here has used this company and how they have found them to be.

Thanks,
Sanjay

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Aegis

Paul_Varjak wrote: »

I have used Cavendish to buy an Investment Bond. Cavendish refunded all the initial commission (less their 'fee').

The investment bond provider failed to send the policy documents and Cavendish were not really interested in getting hold of these for me. They claimed I should go to the provider direct.

Doesn't sound like great customer service... Is that typical of discount brokers?

dunstonh

Doesn't sound like great customer service... Is that typical of discount brokers?

Fairly. Remember, execution only means you are doing all the legwork and only using the IFA to get the discount. If you want servicing, you either pay for it or let the IFA keep some commission.

I have used Cavendish to buy an Investment Bond. Cavendish refunded all the initial commission (less their 'fee').

Not the best place to buy bonds. They dont appear to get very good terms so even with commission taken, it is possible to beat there commission free option.

I've just discovered a company called called Cavendish (www.cavendishonline.co.uk) which says that it will rebate the renewal commissions it receives on ISA, PEP, unit trust and investment trust holdings for a fee of £10 per year per fund and a one off set up of £20 per fund.

£10 per fund with average trail at 0.35% (maximum tends to be 0.5% but lower risk funds can drop as low as zero or more typically 0.15%). So, your minimum per fund has to be around £4k to save you any money.

EdInvestor

Customer service at discount brokers is normally streets ahead of insurance companies, which are the worst in the industry by far.

I can understand Cavendish refusing to try to extract docs out of the lifeco.After all, what do you expect for twenty quid? IFAs charge 200 quid an hour for doing this donkey work.

dunstonh

Customer service at discount brokers is normally streets ahead of insurance companies, which are the worst in the industry by far.

You are mixing up discount IFAs with an own product with discount IFAs arranging a product with a provider.

sanjaymaz

Ok. How about their service on unit trusts or ISAs? 1% is the normal commission - so this is about £40 per year saving (given their fee is £10) on a fund of £5k.

Are there any alternatives? Or can we as MSEs set up our own discount brokerage and get 100% back???

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david78

Cavendish are not the only discount broker: see Martin's article.

http://www.moneysavingexpert.com/savings/isa-discounts

You can generally get the discounts and rebates on offer on non-ISA accounts too. I use H-L and the service levels have been very good.

dunstonh

1% is the normal commission

No its not. 0.5% for equities is the norm. 0.35% on property and 0.15% on fixed interest. They are the typical amounts (although they vary and you can find funds with no trail, and some with lower and more).

Or can we as MSEs set up our own discount brokerage and get 100% back???

It costs millions to create a product and go to market.

JEB770

If you have ISAs or PEPs, companies like CommShare or Elson will share the renewal commission with you. Not sure if anyone else has used them but I'm about to sign up with Elson