Cavendish Online acquired by Fidelity

Albermarle

The platform fee is( was ) not the only difference . With Fidelity direct there is a low cap of £45 on exchange traded products ( ETF's ;shares and IT's ) Also I understand that you could not drawdown the pension if you were with Cavendish .
Considering the efforts Fidelity put in to acquire new customers - lots of advertising - generous cashbacks for transfer , I can not see them just easily letting go of their new Cavendish customers.
In light of fierce competition in this area , I could see maybe some fees restructuring . Although as they have a zero charge for almost everything else, this only really leaves the platform fee?

mike88 said:

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.

There is no fee for leaving the Fidelity personal investing platform , which is where the Cavendish customers are now and will be in future . 

Albermarle

From Citywire

Fidelity has bought Cavendish Online, pledging to maintain the small investment platform’s charging structure for the 30,000 new customers it is taking on for at least 12 months.

Cavendish Online’s £900m of customer assets will move to Fidelity’s £20bn Personal Investing platform following the deal, which concluded on Friday.

mike88

Albermarle said:

mike88 said:

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.

There is no fee for leaving the Fidelity personal investing platform , which is where the Cavendish customers are now and will be in future . 

I was thinking more in terms of transferring assets out of Fidelity to another provider such as HL or AJ Bell.

Thrugelmir

Consolidation in the sector. The old business model is no longer viable perhaps. 

Albermarle

mike88 said:

Albermarle said:

mike88 said:

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.

There is no fee for leaving the Fidelity personal investing platform , which is where the Cavendish customers are now and will be in future . 

I was thinking more in terms of transferring assets out of Fidelity to another provider such as HL or AJ Bell.

As I said no fee for transferring out .
If you transfer to HL the fees would be more expensive and to A J Bell about the same .

bill_on_line

Currently some good news of none Fidelity investments Cavendish say it will not be effecting them

Dear Mr x

 Thank you for your email.

This only affects your investments on the Fidelity FundsNetwork platform. We will continue to collect and pay the trail commission on your bonds as we do now.

 Kind regards,

Client Services Cavendish Online Ltd.

wizzards

I only got notified after the event via email.  Does this mean there are no cheap platforms left and in a years time I have to pay Fidelity the full rates for all my unit trusts in a previously a PEP and then ISA umbrella over many years ?  I was thinking previously of transferring what I had with Hargreaves Lansdown in a SIPP to Fidelity (Cavendish online).  Is there anyway of getting the fees I will pay in a years time somehow rebated somehow by using a solicitor or Financial advisor.

Cavendish must have got some fees off the Fidelity platform or there would have been no point in them offering the service they did for ISA's on the Fidelity platform.

talexuser

wizzards said:

Cavendish must have got some fees off the Fidelity platform or there would have been no point in them offering the service they did for ISA's on the Fidelity platform.

Obviously they got a bulk discount from Fidelity for all of the Cavendish customer base, and then ran a lower profit for a bare bones service enabling them to have a cheaper fee. It remains to see if it is worth it for Fidelity to have a cut down service at a cheaper fee in 12 months time. A balance between too many people moving to the cheaper no-frills fee lowering their profits, compared to too many leaving after 12 months affecting the bottom line. I guess for the size of Fidelity it doesn't matter, we will just go to 0.35% and rely on apathy for most to stay on.

Froggitt2

For large portfolios, there is still ii and iweb offering flat rate (or zero) rather than 0.35%. Any more?

Albermarle

wizzards said:

I only got notified after the event via email.  Does this mean there are no cheap platforms left and in a years time I have to pay Fidelity the full rates for all my unit trusts in a previously a PEP and then ISA umbrella over many years ?  I was thinking previously of transferring what I had with Hargreaves Lansdown in a SIPP to Fidelity (Cavendish online).  Is there anyway of getting the fees I will pay in a years time somehow rebated somehow by using a solicitor or Financial advisor.

Cavendish must have got some fees off the Fidelity platform or there would have been no point in them offering the service they did for ISA's on the Fidelity platform.

Compared to historical charges , what you are paying today and for the next 12 months ( 0.25%) and what you will pay later maybe (0.35% ) is still cheap , although more so for a SIPP than an ISA.
If you want to transfer to get even lower charges then there are other alternatives . Which one is cheapest/best depends on your needs as all the pricing structures are different so it is a bit horses for courses.
https://monevator.com/compare-uk-cheapest-online-brokers/