Cavendish Renewal Commission Service

Joe9090

Has anybody else received a recent letter from Cavendish regarding the above? This is separate to the Fidelity Funds Network transfer which went through at the end of last year. 
It seems they are now also terminating their  RCS business  and are unable to offer any other intermediaries who could take their place.

Shirt321

I received the same letter. Seems pretty poor service that they don’t even have a suggestion as to where to even begin transferring the product. I called Interactive Investor today to see if they can take on my VCT portfolio and provide me the same service. I will report back when I have their response. 

dunstonh

Renewal commission on insurances is a pittance.  Usually small pennies.  It can actually cost more to administer it than you get.
Pensions rarely had renewal commission and investment funds have been clean share classes for nearly 8 years.

So, Fidelity probably don't see much of a future for it.

Joe9090

dunstonh said:

Renewal commission on insurances is a pittance.  Usually small pennies.  It can actually cost more to administer it than you get.

I have an insurance bond and got over £40 from Cavendish in rebate every year from them.
 Can anyone recommend me anyone who has the same status as Cavendish who would be willing to take this over?

dunstonh

Joe9090 said:

dunstonh said:

Renewal commission on insurances is a pittance.  Usually small pennies.  It can actually cost more to administer it than you get.

I have an insurance bond and got over £40 from Cavendish in rebate every year from them.
 Can anyone recommend me anyone who has the same status as Cavendish who would be willing to take this over?

That suggests it is quite a low value.  So, why are you still holding it in an investment bond and haven't done a bed&ISA or bed&Pension?   There could be a justifiable reason why you haven't but whilst you are focusing on the commission, you are missing out on the internal taxation of the bond that could be avoided.

I don't think anyone does now as the commission paying plans are a minority nowadays and the FCA require any commission to be turned off with agency transfers or only retained in exchange for offsetting fee based charging for provision of a service.

Joe9090

dunstonh said:

That suggests it is quite a low value.  

Not at all. I have had it for quite a few years and it has done better than most of my long term investments.