Three Charge Bases - To RDR and Beyond | Old Mutual Wealth

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Old Mutual Wealth's platform Charge Bases

Old Mutual Wealth has three separate Charge Bases developed to support commission and Adviser Charging. Depending on the products invested in, each charge basis has a different set of Terms and Conditions and funds list.

The charge bases are applicable in the following circumstances:

Charge basis 1. This is for existing CRA and CIB accounts as at 31 December 2012 that have not been subject to a 'disturbance event' since 31 December 2012. It allows commission payments already in place to continue unchanged and includes Old Mutual Wealth’s fixed price Investor Charge.

Charge basis 2. This applies to existing CRA and CIB investments as at 31 December 2012 that have been subject to a 'disturbance event' after 31 December 2012.

Charge basis 3. Adviser Charging replaces Investor Charge with a Product/Service Charge (depending on the type of investment), based on a percentage of all investments held. Customers on Charge Basis 3 also receive the full fund manager rebates. This charge basis is applicable to:

Who is paid what under the new charging arrangements?

The table below shows the individual charges associated with each charge basis and who receives them:

Who is paid what?Charge basis 1Charge basis 2Charge basis 3

Old Mutual Wealth charge Investor Charge
Fixed charge (currently £73.70).
Investor Charge
Fixed charge (currently £73.70).
Old Mutual Wealth Service or Product Charge
Percentage of your platform holdings.

Financial adviser payment Commission
Options include:
  • - Initial commission
  • - Fund-based trail commission
  • - Nominated trail commission
  • - Switch commission
Adviser Charging
Options include:
  • - Initial fee %/£
  • - Regular Adviser
       fee  %/£
  • - Switch fee %/£
  • - Ad hoc fee %/£
Adviser Charging
Options include:
  • - Initial fee %/£
  • - Regular Adviser  
       fee %/£
  • - Switch fee %/£
  • - Ad hoc fee %/£

What fund manager charges apply? Total expense ratio (TER)
In full (see below).
Total expense ratio (TER)
Less customer account credit
(see below).
Total expense ratio (TER)
Less rebate in the form of fund units (see below).

What fund manager rebates are paid to the client? Not applicable
Old Mutual Wealth retains rebates and uses
them partly to pay fund based 
trail commission and partly to cover our costs.
Customer Account Credit
This is the amount of rebate equal to fund based commission that is re-invested in the form of fund units.
Full rebate
Reinvested in the form of fund units.

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