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Clubfinance trail commission rebates
Posted: January 9th, 2017, 11:35 pm
by UncleEbenezer
Anyone know when Clubfinance rebates may be expected this year? Have they permanently put them back to end-Jan, or are they behind schedule again?
Their website tells us the amounts, but not (as far as I can see) the dates.
Re: Clubfinance trail commission rebates
Posted: January 10th, 2017, 7:19 pm
by naflod
Hi UncleE
In the Clubfinance terms of business, item 41 states:
Unless otherwise communicated to the client, commission rebates by cheque or other payment method in respect
of initial commission on lump sum investments or mortgages, will be sent by post or transmitted within the later
of: within the calendar month following the calendar month in which any clawback period set by the provider
ends; or within the calendar month following the calendar month in which the commission is received from the
provider. This is subject to a £20 minimum, any amount less than £20 will be included in the annual procedure set
out below. Commission rebates by cheque or other payment method in respect of regular premium products and
renewal or trail commission will be sent by post or transmitted by 31st January of the following calendar year
based on commission received by Clubfinance in the year up to 31st October. In all cases, no payment will be
made if the amount would be less than £20 or a clawback is still in force for the commission. An amount less than
£20 will remain the property of Clubfinance until, when added to future amounts (as determined for each
subsequent year to 31st October), the payment would be for £20 or more. Rebates in relation to specific
commission payments received by Clubfinance may be deferred until Clubfinance receives the relevant
statement to establish which clients the commission relates to, and the relevant amounts. All rebates may be
deferred if the client has not provided anti-money laundering identification documents where requested, or has
not accepted the Clubfinance Client Declaration in relation to one or more transactions.
So it is now confirmed that it is the end of January (I remember them saying something along those lines a year ago when they were late again).
Actually, I preferred the late payments with the comparatively generous interest rates paid by way of apology.
naflod
PS Shame it is a "secure" document that can't be copied!
Re: Clubfinance trail commission rebates
Posted: February 2nd, 2017, 10:31 am
by UncleEbenezer
Belated thanks naflod for finding that detail amongst their docs. Not sure what you mean about a doc that can't be copied: I viewed it after reading your post, and didn't see anything unusual.
Statement+cheque arrived this morning. Reading it, I see I'm still getting trail commission on shares in a nominee account (with H-L).
I raised an eyebrow about that last year, but concluded it must be down to the time lag between the commissions and the rebate. After another year, that explanation no longer works: the shares in question[1] have been in the nominee account since 2/2/2015. It seems that moving shares to my H-L account doesn't affect the trail rebate at all. Puzzling indeed.
[1] From my first ever VCT subscription: the Foresight linked offer in 2008-9.
Re: Clubfinance trail commission rebates
Posted: February 2nd, 2017, 11:24 am
by 127tolmers
I got my first ever rebate from CF today covering the period up to 31 Oct 2016. It relates to my Baronsmead 5 purchase in Feb 15 and the 4 joint Mobeus offers in Jan 2015. The first commission rebate came from B5 in Dec 15 and the Mobeus ones at various times in 2016. After tax it was worth 0.24% on B5 and 0.3% average on the Mobeus. It comes with an income tax deduction certificate and a reminder to put it on your tax return.
Their application service appeared to be good and this was a better deal than going through my broker.
Re: Clubfinance trail commission rebates
Posted: February 2nd, 2017, 11:33 am
by naflod
Hi UncleE
Sorry, my obtuse reference to not being able to copy it refers to it being a protected pdf so can't be copied, however printing their document to a pdf creates its twin which isn't protected and can, therefore be copied.
Hi tolmers
I've enjoyed the rebates for the last few years now and since the introduction of the payment being made net of income tax, each year along with entering the rebate and tax deducted on my tax return, I also (futilely) include in the white space a note to the taxman that it relates to the commission rebate on tax-free investments.
Now, if only the postman will arrive before I have to go off to the office.
naflod
Re: Clubfinance trail commission rebates
Posted: February 2nd, 2017, 11:42 am
by UncleEbenezer
naflod wrote:Sorry, my obtuse reference to not being able to copy it refers to it being a protected pdf so can't be copied, however printing their document to a pdf creates its twin which isn't protected and can, therefore be copied.
I still don't understand. It was the PDF I found, and I had no trouble copying it. I thought you might've been talking about cut&pasting the text you had quoted, so I verified that that worked fine. Are you using some idiosyncratic PDF reader?
Re: Clubfinance trail commission rebates
Posted: February 2nd, 2017, 8:07 pm
by SpinDoctor
Unc, the trail commission goes to the nominated agent, which will be the initial adviser/agent unless you have since advised otherwise. The nominee (shareholder alone) relationship is not the determining one.
Re: Clubfinance trail commission rebates
Posted: February 2nd, 2017, 8:18 pm
by naflod
Hi UncleE
I was using Adobe Acrobat Reader DC, which I wouldn't have thought to be an idiosyncratic pdf reader, when trying to copy and paste. I've just repeated the exercise with the same results.
Ho hum
naflod
Re: Clubfinance trail commission rebates
Posted: February 5th, 2019, 12:13 pm
by UncleEbenezer
Anyone had a rebate for this year yet?
Re: Clubfinance trail commission rebates
Posted: February 5th, 2019, 2:38 pm
by Kidman
UncleEbenezer wrote:Anyone had a rebate for this year yet?
No, but I'm not sure if I should!
Reading the WealthClub Ts & Cs there is no mention of ClubFinance accrued rebates. It merely states
"The annual rebate takes effect for business received after 22 December 2017" and then one only gets a rebate if the accrued amount is over £20 after deduction of income tax, presumably at 20%, i.e. £25 gross.
Re: Clubfinance trail commission rebates
Posted: February 5th, 2019, 3:05 pm
by UncleEbenezer
Since Wealthclub bought Clubfinance as a going concern, that must surely include their liabilities. Including our trail commission rebate.
I don't know how much I'm due this year on Clubfinance terms. I expect it'll be down from last year, but I'm sure it's over £25.
Wasn't it Wealthclub last year, including the rebate a year ago?
Re: Clubfinance trail commission rebates
Posted: February 6th, 2019, 10:24 am
by UncleEbenezer
OK, I was just one day premature in posting. It arrived today.
As predicted, a significant decline from the last couple of years, mostly as commission ends on older purchases. But still welcome from postie.
Re: Clubfinance trail commission rebates
Posted: February 6th, 2019, 10:26 am
by Kidman
My cheque has just arrived by this morning's post with a comprehensive statement showing tax deducted.
Re: Clubfinance trail commission rebates
Posted: February 6th, 2019, 1:15 pm
by Karellan
Me too.
Re: Clubfinance trail commission rebates
Posted: February 7th, 2019, 11:38 am
by Mark
Always a pleasure to receive these as I consistently forget about them until they arrive.
I should read the HMRC judgement but totally unclear to me why they should be subject to income tax...
Presumably as a higher rate taxpayer I should be adding these to my tax return and will suffer an additional deduction?
Re: Clubfinance trail commission rebates
Posted: February 7th, 2019, 3:06 pm
by UncleEbenezer
Mark wrote:Presumably as a higher rate taxpayer I should be adding these to my tax return and will suffer an additional deduction?
You'll just have to offset it with some more VCT investments.
Re: Clubfinance trail commission rebates
Posted: February 7th, 2019, 4:18 pm
by naflod
Hi Mark
Presumably as a higher rate taxpayer I should be adding these to my tax return and will suffer an additional deduction?
The gross rebate wants to go in box 17 and the tax deducted in box 19 on page TR3 of your SAR.
In the description I always point out that is rebated commission on tax exempt VCTs. Doesn't do me any good, but I feel better for it.
naflod