Remuneration guide. For financial advisers only. This remuneration guide relates to products provided by:

Transcription

1 Remuneration guide For financial advisers only This remuneration guide relates to products provided by: Old Mutual Wealth Limited Individual Savings Account () Collective Investment Account () Old Mutual Wealth Life & Pensions Limited Collective Retirement Account () Collective Investment Bond () Old Mutual International (Guernsey) Limited Offshore Collective Investment Bond (O)* This remuneration guide came into effect on 15 August It should be read together with our current Intermediary Terms of Business. * Please note that the Offshore Collective Investment Bond (O) is closed to all investment.

2 Contents 1. Introduction 3 2. Who to contact for more information 3 3. Adviser charging 3 4. Maximum adviser fees that we will facilitate 4 5. Commission 4 6. Maximum commission 5 7. Conversion to adviser charging 5 8. Commission transaction dates 6 9. Payment on change of intermediary 6 2

3 1. Introduction 1.1. This remuneration guide provides details of the remuneration options available for products provided by Old Mutual Wealth Limited, Old Mutual Wealth Life & Pensions Limited and Old Mutual International (Guernsey) Limited For full details of the remuneration options available for products provided by Old Mutual Wealth Life Assurance Limited, please refer to the Old Mutual Wealth Life Assurance Limited Remuneration Guide. The Old Mutual Wealth Life Assurance Limited Remuneration Guide is available on the our literature library or on request. 1.3 Words that appear in bold are explained in the glossary set out in the Intermediary Terms of Business. 2. Who to contact for more information 2.1 If you require more information about anything in this guide, please contact your Old Mutual Wealth Business Consultant or our Customer Contact Centre either by to or by telephone on Adviser charging 3.1 We may agree to facilitate adviser fees on behalf of clients for accounts or bonds subject to Charge Basis 2 or Charge Basis 3. We will only do so provided we have in each case received the client s signed adviser fee authorisation form We can do this for the following types of adviser fee: Type of fee Description Product Adviser initial fee* Adviser servicing fee Adviser ad hoc fee Adviser fund switch fee A fee that is deducted when the investment is made. For investments made by cheque, the initial fee will be credited to your account seven working days after the cheque is banked, or when the investment is paid into the client s account or bond, whichever is the later. For all other investments, the fee is deducted and credited to your account at the same time that the investment is paid into the client s account or bond. An annual fee that you agree with your client for ongoing services in relation to their account or bond. An adviser servicing fee can be calculated, deducted and credited to your account on the relevant charge date for each account or bond at the following intervals: monthly; quarterly; half yearly or yearly in arrears. If there are other transactions in progress on the charge date for the account or bond, the fee will be deducted and credited to your account on the first working day after all the other transactions have been completed. A one-off fee which can be deducted, and credited to your account, at any time after investment. A fee deducted, and credited to your account, on any switch carried out as a result of financial advice received by the client. The fee is deducted from the sale proceeds of the units being switched. The actual fee will be stipulated by the client or by you for each switch, subject to the maximum agreed between you and your client and authorised by the client. This fee does not apply to switches resulting from phased investment or automatic rebalancing. * For an or cash transfer, an adviser initial fee can be facilitated for a percentage of the cash transfer value, and will be deducted from the amount transferred, with the remainder invested. An adviser initial fee for an or re-registration can be facilitated as a monetary amount, and will be deducted once all of the units have been re-registered. This will show as an Ad hoc fee on client statements. We do not facilitate adviser fees in relation to the Offshore Collective Investment Bond. 3.3 All adviser fees can be expressed as a specified amount of money or as a percentage and are assumed to include VAT if applicable. The only exception is the adviser servicing fee where the client can state whether VAT is to be added to the agreed fee. The client will need to give us a new adviser fee authorisation form if they want to increase an adviser servicing fee, fund switch fee or initial fee, or when requesting a new ad hoc fee. 3.4 We will credit or pay adviser fees on all business arranged by you or your appointed representatives and accepted by us, unless: (a) you are no longer servicing the client (b) the client notifies us that they have withdrawn, revoked or terminated their arrangement to pay adviser fees to you (c) the adviser fees are no longer permitted under FCA rules or if we are no longer permitted by the FCA to facilitate the payment of adviser fees (d) if we terminate the terms with you for any reason. 3

4 4. Maximum adviser fees that we will facilitate 4.1 We reserve the right to refuse to facilitate any adviser fee for any reason. In particular, we will not facilitate any adviser fee that exceeds the following levels: Type of fee Maximum amount of adviser fee that we will facilitate Product Adviser initial fee* Adviser servicing fee Adviser ad hoc fee Adviser fund switch fee Adviser initial fee* Adviser servicing fee Adviser ad hoc fee Adviser fund switch fee 7% of the value of investment. 1.5% to which VAT can be added, based on the value of the account or bond at the date of deduction. The maximum rate is apportioned equally based on the number of payments to be made each year. 4.5% of the value of the account or bond at the date of deduction. 3% of the value of the units sold. 50% of the value of investment. 50% to which VAT can be added, based on the value of the account at the date of deduction. The maximum rate is apportioned equally based on the number of payments to be made each year. 50% of the value of the account at the date of deduction. 50% of the value of the units sold. * For an or cash transfer, an adviser initial fee can be facilitated for a percentage of the cash transfer value, and will be deducted from the amount transferred, with the remainder invested. An adviser initial fee for an or re-registration can be facilitated as a monetary amount, and will be deducted once all of the units have been re-registered. This will show as an Ad hoc fee on client statements The maximum limits shown above apply whether the adviser fee is expressed as a specified amount of money or as a percentage You are responsible for ensuring that you comply with the requirements of the FCA and HMRC in relation to any adviser fee. The fact that we may facilitate an adviser fee does not mean that we believe that it complies with FCA or HMRC requirements. We reserve the right not to facilitate any adviser fee if we reasonably believe it is in breach of the FCA rules Any dispute relating to an adviser fee is a matter for you and your client. We will not be liable to you for the payment of any adviser fee not received by us from a client, whether or not due and payable to you. 5. Commission 5.1. This Type section of commission only applies to accounts Description or bonds subject to Charge Basis 1 and the O. Product Initial commission This is available for non-advised lump sum and regular investment (including transfers in for ). If you agree a lower rate of initial commission than the maximum rate, the initial charge will be reduced to the same amount. This is the default type of trail commission. This is not available where nominated trail commission has been selected. The rate of fund-based trail commission for each fund is published in the Funds list for investments on Charge Basis 1. The typical yearly rates are: 0.50% for Equity, Managed and Property funds 0.35% for Fixed interest funds 0.25% for Tracker funds You cannot select a different rate of fund-based trail commission. We calculate fund-based trail commission monthly, so the yearly percentage rate is divided by 12 to calculate the monthly amount. Calculations for fund-based trail commission are based on the value of funds held at the end of each month, excluding any transactions that are in progress. This is the alternative to fund-based trail commission. This requires a client instruction to pay nominated trail commission. We calculate nominated trail commission monthly, so the yearly percentage rate is divided by 12 to calculate the monthly amount. Calculations for nominated trail commission are based on the value of funds held at the end of each month, excluding any transactions that are in progress. If the amount of nominated trail commission payable at the end of any month is more than the fund-based trail commission, we make up the shortfall by selling units from all funds. If the amount of nominated trail commission payable at the end of any month is less than the fund-based trail commission, we will reinvest the difference by purchasing additional units of all funds in the or. Where a client agrees to switch commission, this is calculated and deducted from the proceeds of the sale part of the switch. is not available on rebalancing, phased investments or on switches resulting from fund closures or technical amendments. can be specified on any eligible switches, up to the maximum rate set by the client. O O 4

5 5.2. We will credit or pay commission on all s or s arranged by you or your appointed representatives and accepted by us, unless: (a) you have irrevocably relinquished your right to the commission for that business in favour of another authorised firm, or another authorised firm has a valid claim to the commission (b) you are no longer servicing the client (c) a dispute arises between you and any authorised firm about any commission. In the event of a dispute we will have discretion to decide to whom commission will be payable (d) there is a client agreed commission arrangement in place and the client terminates the arrangement (e) a conversion event has occurred in respect of that business (f) that commission is no longer permitted under FCA rules (g) we terminate the terms with you for any reason. Please see the following sections for details of what constitutes a conversion event and the impact. See section 7 for O. 6. Maximum commission 6.1. We will not pay commission in excess of the following levels: Commission type Maximum amount of commission Product Initial commission 4.5% N/A 1.5% per year 3% per switch N/A 1.5% per year O 6.2 Any requests to change commission on a or will result in conversion to adviser charging (see section 7).The only option available for the O is to remove all commission, as detailed in section 7.4. Please see the following sections for details of what constitutes a conversion event and the impact. 7. Conversion to adviser charging 7.1. Certain advised events in relation to a or which is subject to Charge Basis 1 will automatically convert that or to adviser charging under Charge Basis 2, and commission will be switched off. These conversion events are shown in the table below. Conversion event Client tops up / Client makes a cash transfer into Client pays new or increased regular investment into Any requests to change the existing commission basis 7.2. Clients with a may elect to convert from Charge Basis 1 to Charge Basis 2 or Charge Basis 3 at any time. 7.3 Clients with a may elect to convert from Charge Basis 1 to Charge Basis 2 at any time. A cannot be converted to Charge Basis Clients with an O can elect to switch off all commission but we will not facilitate adviser fees. 5

6 8. Commission transaction dates 8.1. This table is intended to give you a guide as to when commission is credited to your commission account Transactions may be credited to your account later than shown for operational reasons. Where the transaction date is not a working day, it will be credited on the next working day Transactions credited to your account will appear on your remuneration statement on your next payment date. Commission type Initial commission Initial payment Upon receipt and acceptance of any lump sum or regular investment. Transactions are generated overnight on the first working day of the month and are available to be paid on the second working day of the month. The first payment will be reduced proportionally dependent on the commencement date of the or or O This is calculated on the sale value of the switch, and transactions are generated on receipt of the proceeds from the sale. 9. Payment on change of intermediary Charge Basis 2 and If we are notified or become aware that a client with a product on Charge Basis 2 or 3 has moved to another financial adviser firm, we will not deduct any further adviser fees from the client s account or bond, unless: the letter of authority to transfer from the old adviser firm includes the client s signed authority to transfer any existing adviser fees to the new adviser firm; or a new adviser fee authorisation form has been completed by the client regarding fees for the new adviser firm. Charge Basis If we are notified or become aware that a client with a or on Charge Basis 1 or O has moved to another financial adviser firm, payments for that, or O will be adjusted as shown in the table below. Commission type Initial commission New intermediary Receives commission on future investments at percentage selected. Initial commission on existing regular investments will continue to be paid at the same rate. Receives commission on the total value of the client's fund value. No further nominated trail commission is paid unless a new instruction is received from the client. will be paid instead. No further commission is paid unless a new instruction is received from the client. There is no proportional payment in respect of fund-based trail commission and nominated trail commission for the period between the last payment date and the date we are notified that the financial adviser firm has changed. Head Office Old Mutual House, Portland Terrace Southampton, S014 7AY T F Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account () and Collective Investment Account () and Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account () and Collective Investment Bond (). The WealthSelect Managed Portfolio Service is provided by Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited. Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited are registered in England and Wales under numbers and respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority. Old Mutual Wealth Life & Pensions Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financial Services register numbers are and respectively. VAT number The Offshore Collective Investment Bond is issued by Old Mutual International (Guernsey) Limited, regulated by the Guernsey Financial Services Commission. The Company is licensed to write long-term business under the Insurance Business (Bailiwick of Guernsey) Law Albert House, South Esplanade, St Peter Port, Guernsey GY1 1AW, Channel Islands. Registered No The information given in this document is based on Old Mutual International (Guernsey) Limited s understanding of current law and practice in the jurisdictions referred to in the text. No liability can be accepted for any personal tax consequences or for the effect of any future tax or legislative changes. Investors should remember that past performance is no guarantee of future returns and that fund prices will reflect the value of their underlying securities. As a result of the nature of investments and possible exchange or interest rate fluctuations, the value of investments may go down as well as up. Old Mutual International (Guernsey) Limited investments are not available to residents of the Bailiwick of Guernsey or of any jurisdiction where such investments would be unlawful. This document does not constitute an offer or a solicitation to anyone in any jurisdiction in which an offer is not authorised or to any persons to whom it is unlawful to make such an offer or solicitation. Old Mutual Wealth Limited distributes and Old Mutual Wealth Business Services Limited administers the Offshore Collective Investment Bond. Old Mutual Wealth Limited and Old Mutual Wealth Business Services Limited are registered in England & Wales under numbers and respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority with Financial Services register number VAT number Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account () and Collective Investment Account () and Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account () and Collective Investment Bond (). You can also access an existing Offshore Collective Investment Bond, distributed by Old Mutual Wealth Limited but provided by Old Mutual International (Guernsey) Limited. PDF8716/ /November