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Ways to facilitate fees
We offer a wide variety of ways to facilitate fees. You can now:
- verify fees online without having to send us a paper form – saving you time
- spread an initial fee over a set period of time and illustrate for it – helping you meet compliance requirements.
Please note: Adviser fees are available for all businesses held on Charge Bases 2 and 3. For details of commission payable under Charge Basis 1, read our remuneration guide.
100% online
You can now confirm online that your clients have agreed to your fees, without having to send us a signed Quilter Adviser Fee form. You will need to keep the completed form on your records. To fulfil our FCA obligation to obtain and validate clients' instructions, we will request samples of these forms from you from time to time.
Adviser fees
- Payable as a monetary amount or a percentage of the investment lump sum.
What’s changing?
We will continue to deduct the fee prior to investment. On our new technology platform you will now see the fee as a cash transaction. We will then pay this into your firm’s corporate fee/commission account during your selected fee payment cycle.
- Now payable as a monetary amount only.
- The fee can be taken over a period of up to 24 months
- It will be deducted separately from the regular investment.
What’s changing?
FCA guidance has stated that where an initial charge for regular premium business is paid in instalments, you must make sure the regular instalments are not open-ended but end when the initial fee is paid off.
To help ensure you can meet these requirements you will now be able to set a specific period for fees to be deducted up to 24 months. Illustrations will also take into account the closed ended fee.
We will deduct the fee separately from the regular investment based on the anniversary of the date the account was opened. The fee will be funded using cash initially. Where cash is insufficient to cover the fee or charge, the platform will sell units proportionally to fund approximately six months’ worth of fees, up to a maximum of 0.75% of the account value. You can read more about this in our 'Straightforward cash management' webpage.
If a regular investment is cancelled, the fee will also be cancelled. If a regular investment is paused - and this only applies to ISA investors whose Direct Debits are paused until the next tax year because they have reached the maximum ISA limit - the following applies
- If the fee was arranged prior to migration, it will be cancelled when the Direct Debit is paused. Advisers will then need rearrange the fee when the Direct Debit resumes.
- Fees arranged after migration will continue when the Direct Debit is paused.
Furthermore if a regular investment is decreased the following applies
- If the fee was arranged as a percentage prior to migration, it will be cancelled when the Direct Debit is decreased (if no amendment to the fee is also made at the same time).
- If the fee was arranged as a monetary amount prior to migration, it will continue when the Direct Debit is decreased (if no amendment to the fee is also made at the same time).
- Fees arranged after migration will continue when the Direct Debit is decreased.
Important migration information
We will migrate all existing initial fees on regular investments. Fee instructions will be capped at a period of 24 months after migration.
On the new technology, because this type of fee can only be specified as a monetary amount, if you have existing regular initial fee arrangements that are specified as a percentage, we will migrate these using the equivalent monetary value.
- Payable as a monetary amount or a percentage of the account value.
How is it deducted?
We currently calculate servicing fees and Quilter charges once a month/quarter/half year/annually depending upon the frequency chosen by you and we deduct these fees on the account’s charge date.
We typically deduct servicing fees on the anniversary of the day the first account was opened under an individual’s customer reference number. These charges accrue on a daily basis and you can specify a frequency for the fee payment.
For all products the fee will be funded using cash initially. Where cash is insufficient to cover the fee or charge, the platform will sell units proportionally to fund approximately six months’ worth of fees, up to a maximum of 0.75% of the account value. You can read more about this in our 'Straightforward cash management' webpage.
- Payable as a monetary fee only.
- Can be requested at any time and is not linked to a client contribution.
How is it deducted?
For all products the fee will be funded using cash initially. Where cash is insufficient to cover the fee or charge, the platform will sell units proportionally.
When you request an ad hoc fee from the Collective Retirement Account, you can specify which sub account (crystallised or uncrystallised) you wish to deduct the fee from.
How fees are deducted from the CRA
The CRA gives you additional flexibility to manage crystallised and uncrystallised assets in separate sub accounts.
If you request a servicing fee and your client holds both crystallised and uncrystallised assets, we will fund the fee from the largest crystallised sub account. If your client does not hold crystallised assets, the fee will be funded from their uncrystallised account.
Contingent charging and the CRA
There are three ‘Personal recommendation’ questions within the new business process which you will see when inputting a transfer. The last of these questions is to identify whether contingent charging was used for this transfer advice.
If there are no safeguarded benefits being transferred or the only safeguarded benefits are guaranteed annuity rates you should always answer ‘No’ to the contingent charging question. In line with FCA rules introduced on 1 October 2020, in nearly all cases we will not accept the transfer of safeguarded benefits being transferred where contingent charging applies. The exemptions are where the transfer is from a pensions product offering guaranteed annuity rates or whether either serious ill health or serious financial hardship applies.
Safeguarded benefits involve some form of guarantee or promise about the pension income someone will receive. Examples of safeguarded benefits include defined benefit (sometimes called final salary) pensions, deferred annuities, guaranteed annuity rates and guaranteed minimum pensions.
Charging VAT on adviser fees
If you need to add VAT to your fee, you will need to specify the servicing fee percentage inclusive of VAT. If you used the option on our previous platform to add VAT to your servicing fee, then at migration the fee amount was ‘grossed up’ to ensure you continued receiving the same level of fee.
Please note that if VAT changes in the future we will not make any adjustments to fees that were previously agreed, inclusive of VAT. If you wish to adjust your fee to include changes to VAT, you will have to get your client to sign a new Quilter fee form before making any adjustment to the fee online.
Removal of initial commission on non-advised business on Charge Basis 1
Since the Retail Distribution Review we have continued to facilitate initial commission on non-advised top-ups to Collective Retirement Accounts and Collective Investment Bonds on Charge Basis 1. You will now no longer be able to receive this commission. If you have existing trail commission arrangements, these will continue and will be unaffected.
Fee statements
When adviser fees are due to be paid to you, you will receive two statements:
- For ISAs and Collective Investment Accounts.
- For Collective Investment Bonds and Collective Retirement Accounts.
