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Chartwell extends cashback scheme

Chartwell Investment Management is extending its cashback service to include refunds on renewal commission for investors in with-profits and distribution bonds.

The IFA has offered a cashback service on Isas and Peps since 1999. It will now refund 75 per cent of the renewal commission it receives on investment bonds. On a typical investment of £20,000, where renewal commission of 0.5 per cent is paid, Chartwell will rebate £75 a year to the investor.

But it says Prudential and Skandia Life refuse to transfer renewal commission away from the original adviser to Chartwell, even if this is requested by the client.

Director Patrick Connolly says: “The service is aimed at new investors who are not getting value for money for the renewal commission that is being paid to the adviser who sold them the investment bond. There are still too many advisers who believe renewal commission is a right.”

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