Cofunds is a UK-based investment platform that provides access to a range of investment products, including funds, stocks, shares, and bonds. The platform was acquired by Aegon in 2016 and has since undergone a series of changes to align it with Aegon’s other investment platforms.
One significant change was the closure of the Cofunds Investor Portfolio Service (IPS) in 2019. The closure affected thousands of investors who held assets in IPS, and many of them were entitled to Cofunds refunds.
So, what are Cofunds refunds, and how can you claim yours?
The background on Cofunds refunds
The closure of IPS meant that investors who held assets in IPS were required to transfer their holdings to another platform or sell their holdings and receive the proceeds as cash. However, many of these investors incurred costs and charges in the process.
For example, investors may have been charged fees by their financial advisors or incurred dealing charges from selling their holdings. Additionally, some investors may have been forced to sell their investments at a loss due to market conditions.
To compensate investors for any costs or losses they incurred as a result of the IPS closure, Aegon set up a compensation scheme. The scheme provided Cofunds refunds to investors who could demonstrate that they had incurred costs or losses as a result of the IPS closure.
What costs and losses are covered by Cofunds refunds?
Cofunds refunds are designed to compensate investors for costs and losses that they incurred specifically as a result of the IPS closure. As such, the following costs and losses may be covered:
– Financial advisor fees
– Dealing charges
– Losses incurred from selling investments at a loss
– Tax liabilities incurred as a result of the IPS closure
However, it’s worth noting that not all costs and losses will be covered by the scheme. For example, any pre-existing losses or costs that were unrelated to the IPS closure will not be covered.
How to claim your Cofunds refund
If you held assets in IPS and believe that you incurred costs or losses as a result of the closure, you may be entitled to a Cofunds refund. To claim your refund, you will need to follow the steps outlined by Aegon.
The first step is to complete a claim form, which is available on Aegon’s website. The form will ask you for details of the investments you held in IPS, the costs or losses you incurred, and any evidence you have to support your claim.
Once you have completed the form, you will need to send it to Aegon along with any supporting documents. Aegon will then assess your claim and determine whether you are entitled to a refund.
If your claim is successful, Aegon will pay your refund directly into your nominated bank account. The amount you receive will depend on the costs and losses you incurred, up to a maximum of £100,000.
What if your claim is rejected?
If your claim is rejected, you have the right to appeal the decision. You can do this by writing to Aegon’s grievance team, who will review your case and make a final decision.
If you are still not satisfied with the outcome, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that can investigate complaints and make binding decisions.
It’s worth noting that there are time limits for making a claim and appealing a decision. If you believe you may be entitled to a Cofunds refund, it’s important to act quickly and seek professional advice if necessary.
In conclusion, Cofunds refunds are designed to compensate investors for costs and losses they incurred as a result of the closure of the IPS platform. If you held assets in IPS and believe you are entitled to a refund, you can make a claim by completing the relevant form and providing any supporting documents. While not all claims will be successful, it’s important to seek professional advice if you believe you may have incurred costs or losses as a result of the IPS closure.