The Lemon Fool

Hi all

Going to have a first foray into VCTs having maxed out pension, ISA.

Was looking at using Wealth Club and was wondering if someone could answer these questions I have:

1. Do Wealth Club hold the share certificates in a nominee account or do I get sent these (and thus could then transfer them into my Interactve Investor general investment account).
2. How do I actually receive the benefit of the annual rebate that Wealth Club mention?
3. I see an 'Apply Online' next to some VCTs on Wealth Club. Is this 100% online, including payment?

TIA

Del

Hi Del,

I can answer a couple of your questions, but I only have a few months experience with Wealth Club myself, so have not yet received any trail commission rebate.

I have opted to hold paper certificates, which I received direct from the Registrars after allotment. If I correctly recall, I could have had the holding in a nominee account from the start. I was able to transfer an older VCT paper certificate into a nominee account (also Interactive Investor coincidentally) and sell it without any trouble and only a little delay. I suspect we may lose the ability to hold any new paper share certificates (not just VCTs) before too long and be entirely nominee based - not that I have any special knowledge.

The Wealth Club purchase process I followed was entirely online. The payment is made through your normal online banking, direct to the VCT management company, with the full account details provided.

I have found Wealth Club to be very informative, quick and efficient. Based on my short experience, I would recommend them.

Rebate is paid out once per year by cheque (around Jan/Feb IIRC) subject to a certain threshold being received.

Thanks Boots and Oxmatt

This is extremely helpful - I appreciate it.

Del

I think most VCT with Wealth Club you can do the process totally online including paying by bank transfer. Up to date bank transfers do check that the account and sort code have a name that is the same as that on the form so the process is safe (ish/er). I do use bank transfers now and was not a fan for years. I think that you can send a cheque , I have done that too with Wealth Club.
Wealth Club are very helpful and organised. They bought the old business of Clubfinance which were good for VCTs , WC returned the commissions of Clubfinance as per the agreement. I get a cheque about every January.
I though that Wealth club was pretty well all online but I know some like II are a bit of a mix.
Personally I prefer certificates. I am not sure about nominee accounts and the 85K limit which comes up pretty quick with funds earmarked for retirement etc.

I have been very pleased with the service from WealthClub for my VCT applications.

In my case I have used the Pembroke online application form, emailed the password to WealthClub so they can fill in their sections, transferred the funds to the receiving agent, and usually the whole process is done within an hour or so. I take share certificates but I agree with Boots that it is probably an option to have the shares delivered straight to one's nominee with the tax certificate still being sent to you.

The only disappointment with regard to the annual rebate is that it can't be paid direct to our bank accounts rather than by issuing a cheque. I asked for this option but the reply was that "It would be our preference too but the logistics of what we inherited when we took over Clubfinance prohibit us from making payment this way."

Thanks both - again, appreciated.

Cheers

Del

Your questions might have already been answered but, for the benefit of any others reading, I’ll add my two pence worth.

Which boils down to, Wealth Club is very straightforward to deal with and yes fully online.

Each time I’ve done a VCT offer with them it’s the same as it was with Clubfinance i.e. certificated shares, I receive the certificates from the registrar while Wealth Club tracks my holding in their online logged in area, showing the share price / total value etc.

Their annual rebates arrive late Jan or early Feb, by cheque in the post. It’s based on them rebating commission they’ve actually been paid, so perhaps if you’re doing a VCT offer just now, there may not be a rebate as soon as this January, but the year after.

I have done so many different ones over the years I confessed to slightly losing track but I know that I can simply expect the rebate cheque every year.

If you remember the old download / print / post / fingers-crossed application process, or indeed if you are just used to ordering things online, you will doubtless appreciate the straightforwardness of Wealth Club’s online service.

Another satisfied Wealthclub user.

For me the main advantage is the online application process.

They seem very efficient to me.

Indeed. The rebate has sadly dwindled since Clubfinance times, but against that the subscription process is easier and smoother than it ever was, with the need for paper eliminated until you get the share certificate.

Again, thanks everyone - all appreciated.

I'll be applying online over the next week on Wealth Club.

Cheers

Del

If you wish to transfer share certificates into an Interactive Investor account it may be easier to purchase through Interactive Investor directly? Cost is £30 per purchase and is reasonably straightforward to do.

And II also "credit all the trail income we receive from your VCT investments as cash in your account"

So worth doing the sums

I think I will use II next time, but have used WealthClub as well

I have used both Wealth Club and Interactive Investor to purchase VCTs. Both worked fine, and certainly the trail commission rebate via II seems to be more generous. But I was impressed at the the level and clarity of the information on the offers from WC, and the speed and efficiency of the application processing by them.