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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

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