Appoint Clubfinance as your agent for your existing investments, and we will rebate 75% of any commissions received annually by cheque for non-platform business. For fund supermarkets, we typically charge a fee of 0.05% with all commission rebated and access to fund 'clean' share classes.
For funds held direct with Fund Managers, Clubfinance does not charge a fee for this service, we are remunerated by the 25% of commissions we retain, plus the interest we receive until commission is rebated, for fund supermarkets we charge a fee, typically 0.05% per annum.
Many financial products pay ongoing commissions every year to the person or company that originally arranged the product for you. These commissions are known as 'renewal' or 'trail' commissions. This commission comes out of the charges on the product, and even if the product was purchased directly, it is rare that the charges on the product are reduced. One reason for renewal commissions is to remunerate a financial adviser for continuing service to you without you having to pay directly. Renewal commissions may be paid out of the yearly charges on your financial product, and/or deducted from your contributions on a regular contribution product. In some cases, the original financial adviser may no longer be providing an ongoing service, but ongoing commissions may still be paid. Please note that not all products pay renewal commissions.
At Clubfinance we offer a service known as 'Change of Agent'. This is where you notify the product provider via a 'letter of authority' that the 'agent' for your financial product is now Clubfinance Ltd. In many cases the product provider will alter their systems and pay renewal commissions to us instead of the original arranger. Every year we will total up the commissions paid to us from your financial products and we will write you a cheque for 75% of their value (providing the cheque would total more than £20). If the value is less than £20 the amount is recorded and added to the total for the next year. Please see our terms and conditions for more details.
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.
Clubfinance Ltd rebate a high proportion of the renewal commission because we do not provide advice, so by changing your agent to us, you must confirm that you do not require any advice by sending us a signed copy of Clubfinance's Client Declaration (see the full process below). It should be noted that some product providers' systems only allow one agent for all products, so please ensure this is acceptable before proceeding.
On the 25 March 2013 HMRC issued Revenue & Customs Brief 04/13 which stated that from the 6 April 2013 trail commission rebates are subject to Income Tax and firms, including Clubfinance that rebate any trail commission must deduct basic rate Income Tax from the payments. 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 taxpayers, the income will need to be included on your tax return.
We have contacted HMRC for clarification and can provide the following additional information.
Our Frequent Trader service and Old Mutual Wealth's platform (formerly Skandia Investment Solutions) provide access to ‘clean’ fund classes that do not pay any commission to intermediaries and therefore have lower fund charges.
For some products there is a clawback period during which, if the product is cancelled, some of the initial commission paid up front must be returned to the product provider.
Clubfinance does not accept liability for these clawbacks, and undertakes to accept appointment as your agent only after any clawback period has ended.
Clubfinance charges an annual fee of 0.05% for funds where Clubfinance is not eligible to receive commission and provides a 75% rebate of any trail commission Clubfinance receives. If you hold no commission-free funds on Cofunds, Clubfinance’s trail commission rebates are paid automatically into your Cofunds Cash Account on a monthly basis. If you hold at least one commission-free fund on Cofunds, Clubfinance’s trail commission rebates (if any) will be rebated as additional units in your largest commission-free fund holding.
Your funds will still be held on Cofunds. Clubfinance provides a special online portal where you can buy, sell and switch funds as well as being able to view valuations and your transaction history.
If you appoint Clubfinance as your agent, your existing intermediary will lose out on any fees, or legacy trail commission on commission-included funds. Please ensure this is what you wish before proceeding.
See below for the process to appoint Clubfinance as your agent.
Clubfinance charges a fee of 0.05% per annum for assets held on FundsNetwork. If a fund pays trail (ongoing) commission, this will be rebated in full as additional units to your largest fund.
Your funds will still be held on FundsNetwork and you will receive statements and be able to access your account on the FundsNetwork website. You can use your existing customer login here.
If you appoint Clubfinance as your agent, your existing intermediary will lose out on any renewal commission or fees charged on your funds (or if you have no intermediary, FundsNetwork themselves will no longer retain any commission on legacy fund classes, and may receive lower fees). Please ensure this is what you wish before proceeding.
See below for the process to appoint Clubfinance as your agent.
If you do not need or want advice, you can change your agent to Clubfinance for your Old Mutual Wealth's platform (formerly Skandia Investment Solutions) accounts. Clubfinance provides access to Old Mutual Wealth's platform's Charge Basis 3 for a fee of 0.05% per annum. This is an explicit charging structure where both trail commission and platform fees included within the Annual Management Charges of funds of commission-bearing funds are rebated in full (subject to income tax if the funds are held in a Collective Investment Account). Even for many fund managers’ 'clean' fund classes, rebates to customers have been negotiated on this platform. For further information, please see the Old Mutual Wealth's platform (formerly Skandia Investment Solutions) webpage.
Your funds will still be held on Old Mutual Wealth's platform and you will still receive statements from them. You can still access your account on the Old Mutual Wealth website.
Skandia MultiFUNDS accounts were moved across to Skandia Investment Solutions (now Old Mutual Wealth's platform) some time ago.
Independent Financial Advisers ('IFAs') and other financial intermediaries may rely on commission paid on financial products to remunerate them for the advice and services provided to you. Renewal commission is paid on many packaged investment products, such as endowments, Unit Trusts, and Stocks and Shares ISA funds. This commission can remunerate intermediaries for providing an ongoing service including advice on the continuing suitability of financial products.
Changing your agent to Clubfinance Ltd. will mean that any ongoing commissions will be paid to Clubfinance rather than the original intermediary. Please therefore think very carefully before doing this.
Please be aware that changing your agent to Clubfinance will not affect the product itself and the product will still be held in your name with the product provider. You will still receive statements and communications from the product provider.
In some cases you will be able to change your agent to Clubfinance, but many banks do not sell some or all of their products through intermediaries. In addition, whether there is renewal commission payable on a particular product will depend on the bank or building society you purchased the product from and the product itself. If you phone the customer services number on your last valuation statement, they should be able to tell you if there would be commission payable if you appoint an intermediary as your agent.
Even if you did not purchase a financial product through an intermediary, in many cases you can still appoint Clubfinance as your agent. Depending on the product and provider renewal commission may then be paid to Clubfinance.
If you phone the customer services number on your last valuation statement, they should be able to tell you if there would be commission payable if you appoint an intermediary as your agent.
We are still happy to act as your agent if there are no commissions payable if you wish. We do not charge any additional fees for this.
The process for changing agent is displayed below. All information should be sent to Clubfinance. Please make sure that you obtain the current versions of our documents from our website. [How?]
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:
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