Clear, transparent charges are one feature of our market-leading proposition. As before, the new system will continue to give you and your clients:
- competitive charges that you can easily explain
- no charges for switching unit trusts or OEICs, or drawing income
- access to over 1700 funds, with just under 80% accessed at the best available price in the market
- a tiered charge that reduces the more that’s invested
- net trading functionality, minimising the amount of units sold and bought as part of a switch and rebalance.
- A competitive dealing charge for exchange traded investments.
- Family linking – helping reduce the cost of investment further.
New – a competitive dealing charge for exchange traded investments
As trading in exchange traded investments requires a stockbroker, a dealing charge will apply every time an asset is bought and/or sold via the exchange. To open up investment opportunities for more of your clients, we’ve partnered with experienced stockbroker, Winterflood Securities, to provide a competitive and straightforward service with a dealing charge based on how the trade is instructed:
Trades inside a model portfolio
- £1 per asset being bought or sold
Trades outside of a model portfolio
- £3.50 for trades valued at less than £10,000
- 0.035% for trades valued at more than £10,000
- £15 cap per asset trade
Please note, stamp duty* and a PTM levy** apply when trading investment trusts.
* Stamp duty - HM revenue & Customs (HMRC) charges stamp duty of 0.5%.
** PTM Levy - £1 applies to each investment trust trade valued over £10,000.
Learn more about the enhancements to our investment range.
Changes to how we deduct your clients’ charges
Once your clients’ investments are moved to our new technology, the majority of Old Mutual Wealth charges will accrue on a daily basis and will be deducted once a month based on when the client’s first account was opened.
This is a change to the current process, where charges are calculated once a month and deducted on the account’s charge date, which is either the day the account in question was opened (for accounts on Charge Basis 3), or the day the client’s first account was opened (for accounts on Charge Basis 1 or 2). There will not be any change to the rates that are applied to your client’s accounts as a result.
A reminder of our Product/Service Charge
The below charges are applicable to all accounts on Charge Basis 3. You can find out more about the charges applicable to Charge Basis 1 and 2 in our documents, 'Making the cost of investment clear CB1' and 'Making the cost of investment clear CB2'.
Tiered charging structure:
|Total amount invested||Service or Product charge each year|
|From £25,000 to £250,000||0.30%|
|From £250,000 to £750,000||0.25%|
|More than £750,000||0.15%|
Example of the effective charge your clients will pay:
|Account value||Effective charge|
Useful Hub articles
Advisers reading this article also found the following articles useful.
Our new technology platform
Key product enhancements