SELF INVESTMENTS
Pension Portfolio
CHARGES APPENDIX
ANNUAL CHARGES AND INVESTMENT CHARGES
These charges are applicable as at April 2015 and they are exclusive of VAT unless
otherwise stated.
For details of current charges, please contact Royal London, Royal London House,
Alderley Road, Wilmslow, Cheshire SK9 1PF.
ANNUAL CHARGES
1. Administration charges
The annual administration charge is
payable in advance from your Pension
Portfolio Bank Account. It is deducted from
your Pension Portfolio Bank Account when
you first start the Self Investments and on
each subsequent anniversary of starting the
Self Investments. The charge increases each
year in line with Average Weekly Earnings
based on the change during the 12 months
to October each year.
Online
Full
Investments Investments
Annual
£360 a year
administration
charge
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£665 a year
INVESTMENT CHARGES
2. Fund supermarket charges
Charge type
Charge
Fund
supermarket
annual charge
0.25% of the amount
invested in our fund
supermarket
Annual
management
charge
Typically between
0.25% – 2.5% each
year of the value of the
investment
Initial fund
management
charge
Telephone
dealing charge
Typically between 0% –
6% of the value of the
investment
£33 per transaction (in
addition to the charges
above)
For Self Investments started after 31
December 2012, some of the management
charge may be rebated back to you and,
where applicable, will be paid into your
Pension Portfolio Bank Account. Contact
us if you want details on a specific
investment.
INVESTMENT CHARGES
3. Execution only stockbroker
charges
Charge type
Charge
Management
charge
£24 including VAT
Transaction charge
(plus online fees)
£20
Exit charge
£15
Charge type
Charge
Telephone dealing
charge
£33 per transaction
(in addition to the
transaction charges
above)1
Close account
charge
1
The charges increase each year in line with
Average Weekly Earnings based on the
change during the 12 months to October
each year.
Other expenses might be incurred
depending on the type of security being
purchased and the value of your investment.
An example of other expenses would be
stamp duty. Stamp Duty Reserve Tax of
0.5% of the investment is currently payable
on the electronic purchase of UK shares.
£15 per stock sale
he online service for share dealing is currently unavailable therefore the telephone share dealing charge will be
T
waived until our online service is resumed.
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INVESTMENT CHARGES
4. Full Investments trading charges
Investment type
Funds, equities and
other securities/instruments
not available online and
requiring an application
form(e.g. tax exempt unit
trusts)
Funds, equities and other
securities/ instruments
available online (no
application form required)
Corporate actions
Trustee investment plans
(that meet set criteria)2
Charge
Transaction fee
£185
Account set-up fee
£97
Annual fee
£33
Annual fee
Transaction fee
£185
£65
Per action
£15
Annual fee
£65
Transaction fee
£65
Other trustee investment
plans
Transaction fee
£125
Telephone dealing charge
For purchases and/or sales
that could otherwise have
been carried out online
£33 per transaction (in
addition to any set-up,
transaction, fund and/or
annual holding charges)
Annual fee
£105
The charges increase each year in line with Average Weekly Earnings based on the change
during the 12 months to October each year.
2
o qualify for the lower charges (transaction fee and annual fee), trustee investment plan providers must be able to
T
provide us with valuation information in an electronic format, e.g. a spreadsheet on a monthly basis.
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INVESTMENT CHARGES
5. Stockbroker and custodian expenses
Assets purchased on the Full Services model that require the use of a stockbroker and our
designated default custodian, will be charged at the rates below:
Investment type
Condition/action
Charge
UK securities (also Irish
Government bonds and
corporate bonds)
First £10,000
0.75%
On the balance
0.15%
Next £90,000
Minimum charge
Transfer out of nominee
Government stamp duty
Overseas securities
£20
£10 per stock holding
0.5% (applied on all
purchases)
First £10,000
1.25%
On the balance
0.28%
Next £90,000
Minimum charge
Overseas custody charge
Security movement charge
Transfer out of nominee
Unit trusts
0.25%
0.38%
£50
£30 per stock per year
£25
£25 per stock holding
Panel takeovers and mergers £1 (on purchases and/or
sales over £10,000)
Sales
Annual Service Charge £150 per year excluding VAT
As per UK securities
These charges apply for purchases and/or sales (as appropriate) that cannot be carried out
online.
Page 5 of 12
INVESTMENT CHARGES
6. Discretionary Fund Manager
(DFM) charges and expenses
We have selected the following DFMs to
make up our panel:
•
•
•
•
•
Brewin Dolphin
Cazenove Capital Management
Tilney
Quilter Cheviot
Rathbone Investment Management
The charges and expenses for the DFM
services are likely to vary between 0.5%
and a maximum of 1% of the value of your
investments and the actual charge will
Page 6 of 12
depend upon the amount you are investing.
These charges are subject to VAT and to
separate contractual terms between you and
your selected DFM.
Other charges levied by the DFM may apply
and if so will be fully disclosed by them.
INVESTMENT CHARGES
7. Property charges
Charge type
Purchase and in specie
transfers in
Administration
Charge
Initial charge (payable once
parties are instructed)3
£520
Charge for a new mortgage
£195
Completion charge
4
Property annual
administration charge
(charged pro rata per
quarter)
£740
If rent is in arrears (charged
per quarter)
£98
Rent review (member)
£395 per review
If VAT registered (charged
per quarter)
£41
New lease or lease renewal
£395
Rent review (non-member)
£715 per review
Deed of variation
Development or
refurbishment
Additional property services
Assignment
Sublet (whole or part)
Sale
£375
License to alter/change of
use
Sale or transfer out
£715 per variation
0.5% of final contract price.
Minimum of £1,265
£140 per hour
£715
£715
£715
£715
The charges increase each year in line with Average Weekly Earnings based on the change
during the 12 months to October each year.
ayable when the scheme instructs a solicitor, surveyor, financial institution or any other party (as appropriate) and is
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not refundable if the transaction does not proceed to completion for any reason.
4
This charge also applies for further loans (mortgage) that are required to cover landlord works and/or member
buy-outs.
3
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INVESTMENT CHARGES
8. Example panel solicitor expenses
8.1 Purchases (legal costs)
Value of property
Guideline fees
Up to £300,000
£1,750 plus VAT and
disbursements
£300,001 to
£400,000
£400,001 to
£750,000
£750,001 to £1
million
Over £1 million
£2,500 plus VAT and
disbursements
£4,000 plus VAT and
disbursements
£5,000 plus VAT and
disbursements
To be quoted
separately
The actual fees charged may be more
or less than the amount above.
These fees are inclusive of borrowing and a
lease to member tenants. A third party lease
will be subject to negotiation. Surveys will
be charged for separately and an individual
quote will be required for each property.
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8.2In Specie transfers in
Value of property
Guideline fees
Any amount
£1,750 plus VAT and
disbursements
The actual fees charged may be more
or less than the amount above.
These fees are inclusive of borrowing and a
lease to member tenants. A third party lease
will be subject to negotiation. Surveys will
be charged for separately and an individual
quote will be required for each property.
8.3Sales and transfers out
These will be negotiated separately and
individual quotes will be required per sale/
transfer.
9. Example environmental specialist
reports expenses
If we deem that an environmental report is
needed for any proposed property or land
purchase, the cost of this report will be paid
from the Pension Portfolio Bank Account.
A report of this type costs in the region of
£1,100 plus VAT.
OTHER CHARGES
10.Overdue charges to Royal London
The interest rate applying for charges that
are overdue to Royal London will be the
base rate plus 3%. The applying base rate
will be that set by The Royal Bank of
Scotland, as varied from time to time.
12. Adviser charges
For Self Investments started after 31
December 2012, any payments to your
financial adviser must come from the Core
Investments arrangement as described in
your Core Investments Plan Booklet.
11. Pension Portfolio Bank Account
and Pension Portfolio Property
Bank Account
11.1 Interest rates
Credit balances in the bank accounts will
attract interest at base rate minus 1.5%.
The applying base rate will be that rate set
by The Royal Bank of Scotland, as varied
from time to time. Interest is accrued on
daily balances and credited each quarter in
March, June, September and December. If
the interest rate becomes a negative value,
then the rate will be treated as 0% and no
interest will be accrued.
11.2 Overdraft charges
Overdrafts are not ordinarily permitted
on any of the bank accounts within your
Pension Portfolio. However, if an account
does become overdrawn, you will be
charged interest on the debit balance at
base rate plus 3%. The applying base rate
will be that rate set by The Royal Bank of
Scotland, as varied from time to time.
We may receive and keep payments from
banks based on the aggregate cash balances
held across all cash accounts with them.
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OTHER CHARGES
13.Time cost charges
If additional or manual services are
required, outside of the standard
administration services we provide, these
will be costed depending on the type of
resource required and they will be charged
at the full daily rate.
The majority of additional services are
likely to be carried out by a team member
or a team leader. However, in some
circumstances, e.g. we receive a Pension
Sharing Order, input might be required
from our technical or legal teams. Directors
and senior management will only be
involved in exceptional circumstances.
Role
Day rate
Director
£1,595
Senior
management
£1,195
Legal
£1,195
Technical
£760
Team member
£425
Team leader
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£545
14.In Specie transfer charge
Online
Full
Investments Investments
In Specie
transfer
charge
£165 per
transfer
£165 per
transfer
This charge does not apply to in specie
transfers in of property from other
registered pension schemes. An in specie
transfer of property into the Pension
Portfolio is charged as a property purchase,
see page 7.
15.Paper reconciled valuation
Online
Full
Investments Investments
Paper
reconciled
valuation
Not
available
£145 per
request
GLOSSARY
Corporate action
An event initiated by a public company that
affects the securities (equity or debt) issued by
the company, for example, share issues.
Custodian
A financial institution that holds securities
and other assets for safe keeping and record
keeping on behalf of investors.
Deed of variation
Varies the terms of an existing document
affecting the title of land usually relating to
leasehold properties. For example, a deed of
variation may vary the length of a lease or
the rent payable.
Discretionary Fund Manager (DFM)
An investment manager which manages
money on your behalf. Usually, you provide
the discretionary fund manager with
investment aims and objectives to follow.
They will then select investments for you.
Equities
Another name for company shares. Some
company shares can be bought and sold on
stock markets.
Execution only stockbroker
Is a Stockbroker that carries out trades on
your or your Adviser’s instructions.
Nominee
Is a designated person or body that will hold
assets on behalf of the beneficial owner.
In Specie/In Specie transfer
Means the transfer of ownership of an
investment or asset from one Registered
Pension Scheme to another without the
need for it to be sold and then re-bought.
Securities
A general name given to shares and bonds
of all types.
Stamp duty
Stamp duty is a tax payable on land,
property and share transactions. The tax is
charged at different rates and has different
thresholds for different types of transaction.
Trustee Investment Plan
Allows trustees of Registered Pension
Schemes to invest a lump sum, where the
scheme rules allow such an investment.
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Royal London
1 Thistle Street, Edinburgh EH2 1DG
royallondon.com
All literature about products that carry the Royal London brand is available
in large print format on request to the Marketing Department at
Royal London, 1 Thistle Street, Edinburgh EH2 1DG.
All of our printed products are produced on stock which is from FSC® certified forests.
The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial
Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and
Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing
Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London’s customers
to other insurance companies. The firm is on the Financial Services Register, registration number 302391.
Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL.
Royal London Corporate Pension Services Limited is authorised and regulated by the Financial Conduct Authority and
provides pension services. The firm is on the Financial Services Register, registration number 460304. Registered
in England and Wales number 5817049. Registered office: 55 Gracechurch Street, London, EC3V 0RL.
April 2015
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