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| You can have all the initial commission rebated for your benefit when you arrange your next ISA, OEIC, Unit Trust, PEP transfer or investment bond through us. We will also send you an automatic annual cashback on your investment. | ||||||||||||||||||||||||||||||||
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How does this work? When you arrange an ISA, PEP, Unit Trust, OEIC, and some investment bonds, your agent (broker) normally receives 'initial commission' immediately and also subsequently receives an annual 'trail commission' based on the value of your investment. Even if you arranged your investment directly with the product provider you would still usually pay the same charges on your investment as if you had used a commission receiving broker, whether the product provider has to pay out initial/trail commission or not. Our service unlocks the commission for you. We can arrange investments with any product provider that a financial adviser would deal with. The 'Initial Commission' Discount The value of the initial commission is typically 3% on most ISAs, PEPs, Unit Trusts and OEICS and around 5% for investment bonds where a trail commission is payable. If you arrange your investment through us we will instruct the investment provider to pay us zero initial commission, and instead this money will be used to enhance your investment - usually by being offset against the initial charge or bid/offer spread. We take nothing from the transaction because we will share with you the 'trail commission' in future. If you are interested in any investment that pays commission we can help. If you want to know how much discount will be applied to your investment before you invest please call 0800 970 0457 between 9am and 5pm Monday-Friday or simply email your fund choice to ifa@lifedirect.co.uk About 'Trail Commission' The value of the trail commission is usually 0.5% of the value of the investment e.g. £35 per annum for an ISA valued at £7000. We will share the trail commission with you for all new investments you arrange with us (plus any of your current investments you enter in to our 'existing investments service') by sending you an annual cashback payment. You would not normally receive any benefit from the trail commission therefore this is an opportunity for you to truly maximise your investments. |
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How much 'trail commission' will I receive? We will pay you annually just after the anniversary of you first joining the service. We will collect trail commissions from all your investments and add them together each year. The tables below show what percentage of the commission we pay you each year together with examples of how much this could generate for you (assumes 7% per annum investment growth). All payments are free of tax. |
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Is there a cost involved? Our service is normally free of charge if you apply online for your investment via the link below or obtain your own application form (from the providers website usually) and the investment pays a 'trail commission' (this is the only chance we get to make any money) - ask us if you are unsure. If you need us to send you a paper application form by post we charge £10 for handling, postage and packing. If the investment you want does not pay any trail commission we charge £25 to have all initial commission rebated (this charge is more than offset by the rebate of initial commission e.g. on a typical £7000 ISA we save you £210 in charges). Is there any risk? You remain in full control of your investments and your plans will be exactly the same as if you had arranged them yourself through another broker or direct with the provider (except that you will now benefit from the initial commission reducing the charges). We do not gain any control of your investment but become your agent and should begin to receive the trail commission which we then share with you each year. How to apply for your investment and join the annual cashback service We offer 2 ways to join our service depending on your preferences and the investment you wish to arrange: |
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