Commission and charging options
With our bespoke commission and charging structure, we start with a base annual management charge (AMC) that assumes no commission is paid. This means you
can offer the product to your clients on a fee basis. If you prefer, you can build a bespoke charging structure around the agreed commission levels using:
- a five-year establishment charge (EC)
- a one-year financial adviser charge (FAC)
- an additional AMC
- a combination of an FAC and additional AMC
The table below gives you an 'at a glance' guide to some of the commission options available for regular and single contributions.
| EC | FAC | Additional AMC | ||||
|---|---|---|---|---|---|---|
| Regular* | Single** | Regular | Single | Regular# | Single## | |
| Initial commission (IC) only | 75% x Lautro IC | 6% IC if term >5 years | 1% IC: 1% FAC (maximum 50% IC) | 1% IC: 1% FAC (maximum 8.5% IC) | 2% IC: 0.1% AAMC (maximum 10% IC) | 1.3% IC: 0.1% additional AMC (maximum 6.5% IC) |
| IC and renewal | 60% x Lautro IC and 2.5% renewal | n/a | Up to 45% IC and 2.5% renewal | n/a | Up to 5% IC and 2.5% renewal | n/a |
| IC and implicit fund-related commission (IFRC) | 50% x Lautro IC and 0.1% IFRC | 5% IC & 0.1% IFRC if term >5 years | 1% IC: 1% FAC (maximum 50% IC). IFRC can only be funded by additional AMC. | 1% IC: 1% FAC (maximum 8.5% IC). IFRC can only be funded by additional AMC. | Up to 8% IC and 0.1% IFRC | Up to 5.2% IC and 0.1% IFRC |
| IFRC only | 0.3%† IFRC | 0.3%†† IFRC | IFRC can only be funded by additional AMC. | IFRC can only be funded by additional AMC. | 0.1% IFRC: 0.1% AAMC (maximum 0.5% IFRC) | 0.1% IFRC: 0.1% additional AMC (maximum 0.5% IFRC) |
Establishment charge
*Commission figures quoted are based on a 'mid-point' of 0.35% establishment charge (maximum of 0.55%)
**Commission figures quoted are based on a 'mid-point' of 0.08% establishment charge (maximum of 0.12%)
†0.3% is the maximum IFRC with an establishment charge of 0.317%
††0.3% is the maximum IFRC with an establishment charge of 0.02%
Additional AMC
#For regular contributions, commission paid for by an additional AMC can only be chosen where the client has more than 10 years to normal retirement date, or age 65 (whichever is earlier).
##Single contribution commission paid for by an additional AMC is term related. Commission figures quoted are based on a term of more than 20 years.
You can find full details of the commission and charging options in our charges and commission guide.