Frequently Asked Questions

1. What do you do?

2. Is it not better to go direct to the product provider?

3. What rebates do you offer?

4. How can you offer such a large rebate of commissions?

5. What are the different types of commission?

6. I'm interested in getting back some commission each year on my existing investments but I want to keep my investments as they are

7. How do I contact Clubfinance?

8. How do I go about obtaining a product?

9. I haven't received any information on the product I requested?

10. I have not received any commission rebate?

11. What if I have a complaint?

12. Why can't I just get the commission back myself by being my own agent

13. How can I be sure that using Clubfinance is safe?

1. What do you do? 

We are a discount broker offering an execution-only arranging service for investments and insurance. You should only use our service if you do not require any advice or recommendations. If you need advice you must contact another appropriate firm that does give advice on investments or non-investment insurance as applicable (e.g. a financial adviser authorised and regulated by the Financial Conduct Authority).
We act as an intermediary between you, the customer, and the product provider. We do not hold client money. Any payments by you are made out to the product provider. All investments or policies are in your name. By offering an execution-only service we can return to you the majority of the commission for which we are eligible from the product provider.
Our role is to receive your application form, perform the relevant money laundering checks, take a record of your transaction and submit your application to the product provider.  For some existing products that you hold, where there is ongoing commission paid, you may be able to change your agent to Clubfinance, or appoint Clubfinance as your agent, so that we can return the majority of this ongoing commission.

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2. Is it not better to go direct to the product provider? 

In general, if you go direct to the product provider, the product provider will retain the commission it would have paid to a financial adviser or other intermediary. Using our service means that a large percentage of that commission can be returned to you. Some providers may offer a discount for going direct, so please compare. Also, some providers only sell direct, and some products may carry no commission.

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3. What rebates do you offer? 

For investments, we offer a minimum of 75% rebate of our initial commission and a 75% rebate of trail commission (this is limited to 75% of the first 0.5% per annum for VCTs). Please refer to our rebates by product category for further details. Commission is rebated either by reducing the product charges, increasing the amount invested, or by cheque. In all cases the commission must be more than £20 before we rebate it via cheque. If commissions in any one year are less than £20, we will carry the amount over to the following year.

HMRC have confirmed that rebates of trail commission paid to our clients from 6 April 2013 are to be treated as taxable income by the recipient. Clubfinance must deduct basic rate Income Tax from the payment and will provide a tax deduction certificate. HMRC has no system in place for the rebate to be paid gross to non-taxpayers. Non-taxpayers will need to claim the tax back from HMRC. As with other taxable income, for tax payers, the income will need to be included on your tax return.

Please note that we do not hold client money and any commission received by Clubfinance remains Clubfinance's property until it is paid into your account. Please see our terms of businessfor further details.

For non-investment insurance we rebate up to 90% of our initial commission. These rebates automatically reduce the quotes generated.

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4. How can you offer such a large rebate on commissions? 

Clubfinance focuses on offering a purely execution-only service. Our systems have been set up to efficiently and cost effectively provide this service to you. This means we pass savings such as not operating a call centre, to our customers.

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5. What are the different types of commission?  

The two basic types of commission are 'initial commission' and 'renewal' commission.

Initial commission is generally based on a percentage of each premium or amount invested. For some products such as an endowment, initial commission may only apply during an initial period (the 'Initial Earnings Period', for example the first 24 months premiums).

Renewal commission is divided into two types, although either type may be referred to as just 'renewal commission'.

Firstly, 'fund based renewal commission', also known as 'trail', 'servicing' or 'annual' commission. This is based on a percentage of the value of the investment and may be received annually or six-monthly for example.

Secondly, renewal commission may be based on a percentage of each premium or amount invested and applies to products such as endowments. The percentage is typically much lower than the initial commission and applies after the Initial Earnings Period has ended.

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 6. I'm interested in getting back some commission each year on my existing investments but I want to keep my investments as they are

If you change your Agent to Clubfinance or appoint Clubfinance as your agent, your investments are not bought or sold. Your investments stay with the product provider in your name and you still receive statements from the provider.

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7. How do I contact Clubfinance? 

Our preference is for you to email questions to:

 

Our postal address is P.O. Box 1036, Hemel Hempstead, Hertfordshire, HP1 2WU.
Please also feel free to call Clubfinance on 01442 217 287.

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8. How do I go about obtaining a product? 

Our service is largely run through the post and email, however increasingly more services can be undertaken online. Our Process details how to arrange a product through Clubfinance Ltd.

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9. I haven't received any information on the product I requested? 

We make every effort to formally respond to any request within 1 week. We receive many requests with incorrect or invalid e-mail addresses, please ensure the details you provided were correct. If you have not received a reply and believe you should have done, please e-mail us at the address shown on our contacts page and we will investigate this as a matter of urgency. Please include your contact details in this e-mail.

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10. I have not received any commission rebate? 

If you arranged a product through us, please check the commission statement which will detail the commissions on the product. You will only receive a cheque from Clubfinance Ltd if the commissions are not rebated directly into your product.

Under our terms of business, we can only rebate commissions by cheque after such time that cancellation of the policy or investment does not require the commission to be repaid to the product provider. Despite the fact that where possible, we opt not to receive commission on an 'indemnity' basis, a clawback period can apply. We also cannot pay out rebates until we have received the commission from the product provider.

For customers expecting rebates of 'renewal' commissions, these are sent out on an annual basis in January each year. You should also be aware that we do not issue any cheques for a value less than £20, but we will carry the value to the next year. Please refer to our Terms of Business for further details.
If you are still unsure as to whether you should have received any commission rebate, or wish to clarify any matters regarding your commission, please e-mail us or write to us. Our e-mail address and postal address can be found in the Contact Ussection of the website.

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11. What if I have a complaint? 

At Clubfinance we take complaints very seriously. Complaints should be either e-mailed to us at the e-mail address shown in our contacts page, or sent in writing to:

                  Complaints
                  Clubfinance Ltd
                  P.O. Box 1036
                  Hemel Hempstead
                  HP1 2WU

Complaints can also be faxed to us on 01442 241 045. We aim to resolve any complaint as quickly as possible. A copy of our complaints procedures can be obtained on request.

Should the matter not be resolved to your satisfaction, you can then contact the Financial Ombudsman Service, Exchange Tower, London E14 9SR (0800 023 4567 or www.financial-ombudsman.org.uk). The Financial Conduct Authority also provides advice to consumers wishing to make a complaint in their 'Money Advice Service' Website https://www.moneyadviceservice.org.uk/.

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12. Why can't I just get the commission back myself by being my own agent? 

Acting as a financial intermediary for investments and insurance is a regulated activity. This would usually require becoming authorised by the Financial Conduct Authority, and then meeting the necessary regulatory requirements including filing regulatory returns, holding Professional Indemnity Insurance, and paying annual fees to the Financial Conduct Authority, the Financial Ombudsman Service and the Financial Services Compensation Scheme.

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13. How can I be sure that using Clubfinance is safe? 

First, we are authorised and regulated by the Financial Conduct Authority. You can confirm our status in the Financial Services Register available on the Financial Conduct Authority website (http://www.fca.org.uk), or you can telephone the FCA Consumer Helpline on 0800 111 6768 from 8am to 6pm Monday to Friday or Saturday 9am to 1pm (freephone number).

Second, we only act as your intermediary. Your investment or insurance policy is with a product provider and is in your name. Clubfinance does not have its own products. You choose the product provider that you want to go with.

Third, we do not hold client money. This means that money you invest or premiums you pay are made out to the product provider, not us. If you cash in your investment or receive a claim from an insurance policy, the money will be paid direct to you.

Also, we are required to hold adequate financial resources and to have Professional Indemnity Insurance in place by the Financial Conduct Authority.

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Important Information

Clubfinance Ltd is authorised and regulated by the Financial Conduct Authority (firm reference no. 400139). Clubfinance offers an execution-only discount broker service; Clubfinance does not give advice or recommendations. If you have any doubt about the suitability of a particular product or service, or you require advice, you should seek a personal recommendation from an appropriate firm that does give advice. Clubfinance does not produce the products it arranges, or manage the underlying investments. Payments must not be made to Clubfinance, but to the relevant product provider. Contact details for Clubfinance can be found under 'contact'. Users of this website should be aware of the following:

The information on this website is intended solely for the use of those people who are United Kingdom residents for tax and investment purposes and is governed by our terms and conditions of website usage, please click here for details. It is not for distribution in any other jurisdiction, including the United States of America.

Anyone who is not a UK resident should not continue with this site unless wishing to read about personal finances available to UK residents for informational purposes only.

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