How we help you to apply your charges
We’ve worked hard to make sure that all of our With-profits products make it easy for you, as a financial adviser, to collect your fees and charges from your clients. We’re flexible, and offer a range of options to suit you and your clients.
Here’s a breakdown of how we can help, by product.
The initial charge can be deducted from your client’s cheque prior to the investment being made and remitted to you.
The initial investment will be the amount after the fee has been deducted, which will be shown on the Policy Schedule.
We are also able to make an immediate withdrawal from the investment for your initial fee, which will be deducted and remitted to you. If you and the client chooses this option the Policy Schedule will show the gross amount.
This initial fee can be expressed as a fixed amount or as a percentage of the investment.
If you’re providing an ongoing service you may have arranged an ongoing fee. You can arrange to have a fixed amount or a percentage of the fund value deducted on an annual or even monthly basis and remitted to you.
Under HMRC rules, holders of an Investment Bond can withdraw up to 5% per annum without any immediate tax consequences. Any withdrawals for your fees that have been agreed with your client form part of this 5% allowance.
Individual Savings Accounts
The collection of your fees from our ISAs work in exactly the same way.
You and the client can choose for the initial fee to be remitted to you before or after the investment has been made.
A fixed amount or percentage of the fund value can be withdrawn on a regular basis in respect of an ongoing service.
Any amount withdrawn from an investment forms part of the investment in respect of the annual ISA allowance.
Fees can be facilitated on regular contributions to an ISA investment.
We guarantee never to charge a MVR on withdrawals for fees up to 1% of the fund value.
While withdrawals are not generally allowed from Junior ISAs until the child reaches the age of 18, fees agreed with a financial adviser can be withdrawn.
The collection of your fees from a Junior ISA works in exactly the same way as our adult ISA.
Tax Exempt and Standard Savings Plans
As these are Inland Revenue qualifying policies with special tax benefits it’s not possible to make withdrawals from these products in respect of your clients’ fees. We can however collect an additional amount with the first Direct Debit or a fixed amount over a fixed period of time in respect of fees.
Child Trust Funds
Our Child Trust Funds are unit linked policies and do not allow for adviser fees to be deducted from the product.
Product providers have been asked by the FCA to consider the introduction of decency limits to ensure that the amount of fees being facilitated appears fair to the client.
We haven’t set formal decency limits as we don’t know the complexity of the service you’ve provided for your clients.
However if the amount of fee that you ask us to collect is higher than the rates of commission we have traditionally paid we will ask you for further information on the service you have given to your client. If a regular fee withdrawal is higher than our interim bonus rates we will ensure that you and your client are aware of the potential for capital erosion.
As the fees you agree with your client are not commission there is no clawback. If the client exercises their right to cancel the investment and your fees have been deducted we do not claw this back from you.
Our range of direct products are available to financial advisers who wish to undertake non-advised sales for which commission is still payable.
Become an Introducer
If you simply want to introduce clients to Healthy Investment, in order for us to send a Key Information Document and Application Form to them, you can find out more about becoming an Introducer and the commission you can earn here.