Top tips for conversion
Rules for Charge Basis / conversion
- An explanation of the different charge bases is available at http://www.oldmutualwealth.co.uk/Adviser/adviser-support/to-RDR-and-beyond/three-charge-bases/
- From launch all new business will be on Charge Basis 3
- Certain advised transactions will trigger mandatory conversion from Charge Basis 1 to Charge Basis 2 – these are defined in the Terms and Conditions for Charge Basis 1.
- Customers can optionally convert from Charge Basis 1 to Charge Basis 2, or they can convert from Charge Basis 1 or 2 to Charge Basis 3, except for the CIB.
- There is no option to convert an account in the opposite direction (ie to a charge basis with a lower number).
- Client extranet switches will not trigger conversion.
- If a CIA has a transfer of ownership, the new (receiving) account will be set up on Charge Basis 3.
Timing of conversion/charges
- The key variables are the date of conversion and the account charge date.
- For Charge Basis 1, trail commission is calculated and credited at the end of each month.
- The Adviser Servicing Fee will be calculated and credited on the account charge date for each account.
- If any of the following apply, the account charge date will be the next working day:
- – any in-flight transactions that block the fee being deducted on the scheduled day
- – the scheduled account charge day being a non-working day
- – the scheduled charge day on a date that does not apply that month, eg 30th February.
For more details about this, see Top Tips for Adviser Charging