Contact Us

Telephone: 0800 310 1919 (freephone)

FAQs

"I looked at the UK investment market and thought it could do with a shake-up."

Tom Russell InvestSmart

Frequently Asked Questions

What’s the catch?

It might sound too good to be true, but there really is no catch. With InvestSmart you choose between a market beating 85% commission rebate with our rebate only service, or a 50% rebate with a comprehensive annual review.

Remember there’s no extra charge. Our service isn’t just free, it saves you money!

There are other commission rebate companies. Why should I choose InvestSmart?

Because InvestSmart offers you a choice. Either the highest commission rebate in the market at 85%, or a comprehensive annual fund review with a 50% rebate to enable you to keep on top of your investments. No other commission rebate specialist offers this service, but we believe many people want to know how their funds are performing as well as saving money on charges.

What is trail commission?

If you have taken out a policy with a financial advisor before January 2013 you will have paid for the advice either through a fee or through commission. Unlike a fee which you pay directly commission is paid to the advisor through the product provider. That does not make the advice ‘free’, the cost is built into the product charges.

Trail is the ongoing commission which is usually paid for the lifetime of the policy. Typically 0.5% to 1% of the fund value is deducted from the investment each year and paid to the advisor even if no ongoing service is provided.

What if I took out a policy after January 2013?

Policies bought on-line after January 2013 may still include a trail commission that can be rebated through InvestSmart.

Trail commission was banned on investment products bought through financial advisors after January 2013. It is probable that instead of trail commission you are paying an ongoing adviser servicing fee. This is deducted from your plan in much the same way. InvestSmart can tell you how much you are paying and provide you with an alternative quotation for regular reviews. We are confident that we can provide a full service proposition at a much lower cost than typically charged by most financial advisors.

Do all providers pay commission?

Most, but not all, providers pay commission.

Those that do include:

Aberdeen, Aegon, Alliance, Allianz, Artemis, Aviva, Axa, Baille Gifford, Baring, Blackrock, Canada Life, Children's Mutual, Clerical Medical, Cazenove, CF71M, Close, F&C, Fidelity, Friends Life, Friends Provident, First State, Gartmore, Halifax, Henderson, HSBC, Ignis, Invesco, Investec, JPM, Jupiter, Lazard, Legal and General, Liverpool Victoria, Legg Mason, Lion Trust, M&G, Martin Currie, Morgan Stanley, Neptune, New Star, Newton, Octopus, Old Mutual, Phoenix, Prudential, Rathbone, Scottish Equitable, Scottish Life, Scottish Widows, Schroeders, Skandia, Standard Life, Sterling, Threadneedle, UBS, Weslyan, Windsor Life, Zurich.
 
This list is not exhaustive. Many companies have merged or changed their name so you may know them as something else.

Some providers do not pay commission or will not permit a transfer of agency. They include Teachers Life, Tesco, Barclays Life and St James Place.

Again this list is not exhaustive.

Do you only rebate commission on investments?

Although InvestSmart is focused on providing rebates on investment policies, we also provide a rebate service for any policy that pays trail commission. This includes life assurance policies and income protection policies. As a rebate back into these plans is not possible, we will send you your rebate by cheque once a year.

How do I know if my policies are eligible for a commission rebate?

Most, but not all investment policies have trail commission built in. This includes unit trusts, stocks and shares ISA, bonds and pensions. Generally these are policies which were originally sold by IFAs, but those arranged through banks and advisors employed by insurance companies (or even purchased directly) may include trail commission.

Once you have given us your authority we contact the product provider to obtain details of the policy. Whenever possible we arrange for the trail commission rebate be paid back into your policy straight away. In cases where the policy provider cannot accommodate the rebated commission to your policy we will send you your rebate by cheque once a year.

If I recieve my commission rebate by cheque, what is the minimum payment?

Rebate cheques are sent annually. The minimum repayment is £25. If the amount is less than £25 the rebate will be carried forward into the following year.

Why do you rebate commission back into my policy rather than send a cheque?

Whenever possible we rebate trail commission back into your policies. This is because the trail commission is a charge which reduces the return on your investments. Returning the commission to the investment is the simplest option as it reduces your charges and boosts your returns. In the case of ISAs this means you are making the most of your allowance.

Can you rebate commission that I have already paid?

Unfortunately not. We can only rebate commission from the time that you appoint InvestSmart as your servicing agents.

Why do I need InvestSmart- couldn’t I just get the commission back myself?

No, to act as an investment intermediary you have to be regulated by the Financial Conduct Authority and hold the appropriate professional indemnity insurance.

I bought my policy directly- am I still paying commission?

You may be. Policies bought directly from product providers, through on line discount brokers or through price comparison sites may still include trail commission.

Once you have given us your authority we contact the product providers to establish the position on your policies. There is no cost, even if your policies turn out not to be eligible.

Will the commission rebate service affect my policies?

No your policies will remain unchanged, other than you will be paying less in charges.

How much will I save?

It varies from case to case. Typically annual trail commissions are between 0.5% and 1% of the fund value.

Are commission rebates taxable?

The HMRC has recently announced that it considers commission rebates to be taxable, and it requires payments made from April 2013 to be paid net of 20% income tax. Wherever possible InvestSmart rebates the commission back into the policy which avoids the tax charge. Where rebates are paid directly to a client the payment is made net of tax.

How long does the process take?

We aim to complete the process within one calendar month, depending on the product providers response time. 

Is the process complicated?

No. You simply complete an on-line application. We then send you an information pack with pre-completed forms to sign and return. We do the rest.

Do you provide financial advice?

If you require advice we can refer you to an appropriately qualified advisor in the advisory arm of our Company. You will be offered a transparent no-obligation quotation to carry out any work.

Am I free to obtain advice from anyone else?

Of course you are free to obtain advice from wherever you choose. We certainly recommend that you review your financial plans on a regular basis. If you sign a new letter of appointment with an advisor you should be clear whether or not you are agreeing to a transfer of the commission. Once a new appointment is made InvestSmart’s commission rebate will no longer apply.

What happens if I appoint a new financial advisor?

That’s fine. InvestSmart make no charge if you no longer wish to be registered with us.

Is InvestSmart regulated by the Financial Conduct Authority?

Yes, InvestSmart is the trading name of BeaconIFA Ltd, which is regulated by the Financial Conduct Authority. Click here to see our registration details

Is my money safe with InvestSmart?

InvestSmart does not handle client money. Your policies remain in your name and remain invested with the same product providers. Any payment from your policies will be paid directly to you and not via InvestSmart.

InvestSmart is the trading name of BeaconIFA Ltd which is regulated by the Financial Conduct Authority.

What if I have a complaint?

Please contact us. We aim to exceed customer’s expectations. We will seek to resolve any issues as soon as possible.