Change of Agent Cash-Back Calculator:

Insert the value of your existing investments in the box below:

£

Select the annual trail commission payable on the product:

Your expected annual cash-back payment:

Net*:   £

Gross: £

Expected cash-back over 10 years:

Net*:   £

Gross: £

Please note.

We rebate commissions we receive from the product provider. If the product provider ceases paying these commissions for whatever reason, your cash-back will cease. Renewal or trail commissions are often based on the value of the investment, which can rise or fall.

* - After deduction of basic rate Income Tax. If not a basic rate taxpayer, further Income Tax may be due.

Change of Agent

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.

Contents

Explanation of ongoing commission Explanation of our service Taxation of trail commission rebates Clawback period I hold funds on Cofunds I hold funds on Fidelity FundsNetwork I hold funds on Old Mutual Wealth's platform (formerly Skandia Investment Solutions) I bought my funds via an IFA / other intermediary I bought my funds through a bank I bought my funds direct from the product provider The process for changing your agent to Clubfinance

Ongoing commission 

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.

Our service 

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.

Taxation of trail commission rebates 

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.

Clawback period

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.

I hold funds on CofundsTM 

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.

I hold funds on Fidelity FundsNetworkTM 

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.

I hold funds on Old Mutual Wealth's platform (formerly Skandia Investment Solutions) 

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.

I bought my funds via an IFA / other intermediary 

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.

I bought my funds through a bank 

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.

I bought my funds direct from the product provider 

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   —   step-by-step 

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?]

  1. Not all products pay renewal commission. To save you filling in all the forms you can either contact your product provider to see whether renewal commissions are payable on your product, or it may be indicated in your original product documentation. Alternatively, we can attempt to find out this information for you. However, some products have multiple commission structures and in some cases this information may not be available to us. Click here to use our online form.
  2. Please read Clubfinance's – About our services document and print off a copy or store it on your hard drive for future reference. This gives important information including the nature and scope of the services that we may offer. Please click here.
  3. If you are a new customer or if any of your details have changed, we require identification documents to be sent to us. Please click here for details.
  4. Please read our (Clubfinance Ltd) Terms of Business and either print off a copy or store it on your hard drive for future reference. Please click here.
  5. Please print and sign our Client Declaration form confirming that Clubfinance Ltd will only provide an administration service and no advice. Please click here for the form.
  6. Please print and complete the "Letter of Authority / Change of Agent" form to be sent to Clubfinance. Clubfinance will send this form to the product provider. Please use a new form for each product provider. Please use the links below to the generic form or tailored forms for the fund supermarkets indicated.
  7. Please send the identification documents (if necessary), Client Declaration and change of agent form(s) to:
Change of Agent
Clubfinance Ltd.
PO Box 1036
Hemel Hempstead
Hertfordshire
HP1 2WU

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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