How accessible is the Cofunds platform?

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dogfonos
dogfonos Posts: 76 Forumite
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in Savings & investments
Would appreciate advice from those in the know...

Is there any way for an individual investor to directly place (qualifying) investment funds onto the Cofunds platform? Or must placement onto the Cofunds platform always be done by/through a financial advisor or intermediary?

Some folk may have purchased funds directly from a fund investment group so wouldn't have an advisor or intermediary associated with those funds. Would the individual investor still have to go through an intermediary or advisor to place funds into Cofunds?

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  • Reaper
    Reaper Posts: 7,283 Forumite
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    edited 7 March 2018 at 6:13PM
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    I believe they won't deal with individual investors directly, but intermediary firms will happily take on existing investments if you want to use CoFunds.
  • dogfonos
    dogfonos Posts: 76 Forumite
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    Reaper wrote: »
    I believe they won't deal with individual investors directly, but intermediary firms will happily take on existing investments if you want to use CoFunds.

    Yes, I'm sure an intermediary would be only too happy to take an on-going regular cut. Assuming that's the case, I can't help but wonder what justification intermediaries would have for charging an on-going fee for an investment that they previously had nothing to do with. Presumably, the on-going charges would last the lifetime of the investment? What's that phrase - money for old rope?

    In this particular instance, I think a one-off charge by the intermediary, for placing the investment into Cofunds, would be far more appropriate. I'm just thankful my builder doesn't charge an on-going fee for a job he finished last year!

    Online fund platforms seem strange beasts. I think we'll see structural changes to their business model in the years ahead.
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    Is there any way for an individual investor to directly place (qualifying) investment funds onto the Cofunds platform? Or must placement onto the Cofunds platform always be done by/through a financial advisor or intermediary?

    Cofunds is an intermediary platform and they are about to move all Cofunds customers on to the new Aegon platform.

    For legacy business, Cofunds will take written instructions from the consumer directly.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Reaper
    Reaper Posts: 7,283 Forumite
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    dogfonos wrote: »
    Yes, I'm sure an intermediary would be only too happy to take an on-going regular cut. Assuming that's the case, I can't help but wonder what justification intermediaries would have for charging an on-going fee for an investment that they previously had nothing to do with. Presumably, the on-going charges would last the lifetime of the investment? What's that phrase - money for old rope?

    In this particular instance, I think a one-off charge by the intermediary, for placing the investment into Cofunds, would be far more appropriate. I'm just thankful my builder doesn't charge an on-going fee for a job he finished last year!
    My wife has some old CoFunds investments via intermediary Cavendish Online. I don't think Cavendish offer CoFunds any more for new clients but if I remember right they charged her a £25 one-off fee and nothing else.
  • dogfonos
    dogfonos Posts: 76 Forumite
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    Reaper wrote: »
    ...if I remember right they charged her a £25 one-off fee and nothing else.

    Now that seems very reasonable. I'll look into this.

    (Hmm, don't know how to place multiple quotes into the same post, so...)

    "Cofunds is an intermediary platform and they are about to move all Cofunds customers on to the new Aegon platform.

    For legacy business, Cofunds will take written instructions from the consumer directly."

    I vaguely remember being notified about the Aegon changes as my partner has some funds held in Cofunds. Will be interested to see if/how Aegon shakes things up.
  • dogfonos
    dogfonos Posts: 76 Forumite
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    dogfonos wrote: »
    Yes, I'm sure an intermediary would be only too happy to take an on-going regular cut. Assuming that's the case, I can't help but wonder what justification intermediaries would have for charging an on-going fee for an investment that they previously had nothing to do with. Presumably, the on-going charges would last the lifetime of the investment? What's that phrase - money for old rope?
    .

    I've just spoken to two different intermediaries and they both gave the same answer. They would happily place an investor's fund (originally purchased directly from the investment company without any financial advisor or intermediary involvement) onto the Cofunds platform without initial charge but would charge an ongoing monthly fee for the life of the investment.

    What I don't know though is if the Cofunds route (for funds not currently associated with an advisor or intermediary) would be any more expensive than continuing to hold the fund directly with the investment company.
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    I've just spoken to two different intermediaries and they both gave the same answer. They would happily place an investor's fund (originally purchased directly from the investment company without any financial advisor or intermediary involvement) onto the Cofunds platform without initial charge but would charge an ongoing monthly fee for the life of the investment.

    Ironically, a financial adviser cant charge ongoing for the life of the investment unless it is in the provision of services.
    What I don't know though is if the Cofunds route (for funds not currently associated with an advisor or intermediary) would be any more expensive than continuing to hold the fund directly with the investment company.

    It would be easier to not use Cofunds. It always gets messy when people who want to DIY dont use DIY providers but use intermediary providers.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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