Guaranteed Investment Bonds

dunstonh

On the application, the adviser puts down the commission they want. If zero is put in the box then no charge is made against the investment.

I dont know how they are dealing with direct applications but I will repeat that this product does not pay a commission (which is recovered within an amc). It is an explicit charge. if the charge is not taken, then there is nothing to rebate.

darren72

dunstonh wrote: »

On the application, the adviser puts down the commission they want. If zero is put in the box then no charge is made against the investment.

I dont know how they are dealing with direct applications but I will repeat that this product does not pay a commission (which is recovered within an amc). It is an explicit charge. if the charge is not taken, then there is nothing to rebate.

It sounds like the companies are trying to confuse me to get my custom. They specifically say that my initial investment will NOT be reduced by any fees or charges.

To be on the safe side though, I presume there is definitely no charges whatsoever if I go direct with Premier themselves (if you can do that?).

Thanks

Mikeyorks

darren72 wrote: »

I presume there is definitely no charges whatsoever if I go direct with Premier themselves (if you can do that?).

Might have been easier if you'd earlier clarified it wasn't Premier 'offering' the rebate?

To the quote : Yes you can do that. No, they don't charge anything for going direct.

But look carefully at the application .. as the IFA would normally ID you. If you go direct you will need to provide certified ID (passport / driving licence / utility bill etc) yourself. If you look at the PLE37 page - there is an additional download to certify you understand the risks of the product and for you to give full detail of whoever certifies your ID.

But ... put the application + cheque in first - and they will advise the ID required?

darren72

Mikeyorks wrote: »

Might have been easier if you'd earlier clarified it wasn't Premier 'offering' the rebate?

To the quote : Yes you can do that. No, they don't charge anything for going direct.

But look carefully at the application .. as the IFA would normally ID you. If you go direct you will need to provide certified ID (passport / driving licence / utility bill etc) yourself. If you look at the PLE37 page - there is an additional download to certify you understand the risks of the product and for you to give full detail of whoever certifies your ID.

But ... put the application + cheque in first - and they will advise the ID required?

Thanks for the reply - Looks like the two IFA I have been in contact with are trying to confuse me (especially as they won't give me a definite reply).

Looks like I will be going direct then....

Thanks

dunstonh

I cant see any reason you would want to put it through an IFA if they accept direct applications. The IFAs you questioned may have been thinking fee basis (i.e. Cavendish style) where you pay £30 or whatever and your investment has no fee against it.

isofa

NS&I have just (or very recently) launched Issue 14 of their GEBs, info at:
http://www.nsandi.com/products/geb/index.jsp?ccd=NECGAA

So what are the comments on these, they market them like there will be a rush, so you must hurry etc. I quote, "But hurry – this Issue will close on 29 April 2008 or earlier if fully subscribed." I've not reviewed these in much detail, yet!

They are taxable too I notice.

Thanks all

darren72

dunstonh wrote: »

I cant see any reason you would want to put it through an IFA if they accept direct applications. The IFAs you questioned may have been thinking fee basis (i.e. Cavendish style) where you pay £30 or whatever and your investment has no fee against it.

Just had confirmation on this from one of the IFA's I had been asking:

"Further to your recent e-mails I have now looked into this in detail and I must apologies as I have given you incorrect information. All of Premier's previous investment plans have worked in the way I have described, your initial investment would be enhanced by our commission sacrifice. However they have decided on a new structure to this latest plan without informing us of this change. The terms of the plan are somewhat better than any previous editions but the broker commission directly reduces the amount invested."

Mikeyorks

darren72 wrote: »

.. but the broker commission directly reduces the amount invested.

But Darren ... it states that very clearly on both the application form and in numerous places in the brochure!

Entertainer

GEBs are absolute rubbish and should be considered by no one as an investment. I shudder to think the billions that has been invested in them thanks to the hard sell of financial institutions.

dunstonh

Entertainer wrote: »

GEBs are absolute rubbish and should be considered by no one as an investment. I shudder to think the billions that has been invested in them thanks to the hard sell of financial institutions.

Which matches the views of all the regulars here. However, this premier GEB does appear to be an exception.