Cavendish Online acquired by Fidelity

foofi22

Just had an email come through stating this happened on 2nd October.  Haven't seen anything on the forum
Details here: https://www.cavendishonline.co.uk/fidelitysale

Sea_Shell

I've just had the email too!

First place I look.... here.

Just getting my head round what it means.

Grenage

The good news is that for at least 12 months you will pay the same ongoing platform charges (0.25% per annum for accounts valued at less than £200,000 and 0.20% for accounts valued at more than £200,000)

I guess it means little for at least 12 months.

Froggitt2

The good news is that for at least 12 months you will pay the same ongoing platform charges 

ie The good news is that we are giving you 12 months to move your stuff elsewhere before we put the charges up.

greatkingrat

I never really understood the incentive for Fidelity to offer discounts via Cavendish anyway.

Grenage

Froggitt2 said:

The good news is that for at least 12 months you will pay the same ongoing platform charges 

ie The good news is that we are giving you 12 months to move your stuff elsewhere before we put the charges up.

Aye quite possibly; I was going to start using AJ Bell YouInvest in April anyhow, so I guess I'll transfer it when the rates are changed.

virenque

I guess this is why Fidelity have purchased Cavendish, they get the business and control of future fee structure. The Cavendish discount will disappear this time next year!

mike88

Something in the back of y mind suggests there is a penalty for moving your platform away from Funds Network. I could be wrong so will check later unless someone comes up with an answer first.

dunstonh

greatkingrat said:

I never really understood the incentive for Fidelity to offer discounts via Cavendish anyway.

Quite a few platforms offer intermediaries discounts over their standard terms.  We have three platforms that are on special terms.    What is possibly surprising is how little the discount Cavendish got considering the amounts they must have put their way.

Froggitt2

dunstonh said:

greatkingrat said:

I never really understood the incentive for Fidelity to offer discounts via Cavendish anyway.

Quite a few platforms offer intermediaries discounts over their standard terms.  We have three platforms that are on special terms.    What is possibly surprising is how little the discount Cavendish got considering the amounts they must have put their way.

Presumably because half went into the left (customers) pocket, and half into the right (their own) pocket?

Froggitt2

virenque said:

I guess this is why Fidelity have purchased Cavendish, they get the business and control of future fee structure. The Cavendish discount will disappear this time next year!

Presumably they've modelled how many people will leave a a result of a fee increase, and consider the remaining business (at a higher margin) to be worth the purchase price.
Anyone care to hazard a guess as to the percentage who will leave? 50%?