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Old Mutual Wealth caps exit fees at 1% on older UK pension contracts

01/07/2016

Old Mutual Wealth is capping exit fees at 1% for all customers aged 55 or over on older style pension contracts.

This decision follows FCA and DWP consultation papers which propose that existing pension exit charges should be capped at 1% of the value of a member’s pot. Old Mutual Wealth is supportive of this proposal and is committing to these proposals now, ahead of the implementation deadlines.

Old Mutual Wealth will introduce the 1% cap for all applicable personal and occupational pensions during Q4 2016. 

Old Mutual Wealth currently has around 3,400 customers aged 55 or over in older-style pension contracts that attract exit fees.  Following these changes the average exit charge across all applicable pensions will be 0.85%. 

Any such contracts were taken out at least 17 years ago when the costs incurred upfront to establish the plan were spread across the term that was selected when it was originally set up.

Steven Levin

Over 85% of Old Mutual Wealth’s Heritage pension customers are not subject to any exit charges.


Steven Levin, CEO of Old Mutual Wealth’s investment platform, said:

“We have relatively few pension contacts that attract an exit fee. The FCA has clearly set out what it expects from providers. We support this direction and, rather than wait until the March 2017 implementation date, will introduce the 1% cap as soon as is practically possible.”

 

 

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.