Charges

For financial advisers only

Charges made clear

We've designed the Aegon Retirement Choices (ARC) charging structure so it's clear - your clients can see exactly what they're paying for.

Our tiered and capped platform administration charge encourages consolidation and rewards those with more savings.

There are three main types of charges:

  • ARC charges
  • Investment charges
  • Adviser charges

ARC charges

This is the administration charge taken to cover the cost of investing through ARC. We take this charge monthly from your clients’ account. As you can see from the table below, the percentage charge for each band reduces as your clients’ ARC account value grows. So the higher the value of assets they have on ARC, the less their percentage charge will be.

We might vary these charges at our discretion.

Fund value Annual percentage charge
First £29,999.99 0.60%
Next £20,000 (£30,000 to £49,999.99) 0.55%
Next £50,000 (£50,000 to £99,999.99) 0.50%
Next £150,000 (£100,000 to £249,999.99) 0.45%
£250,000 and over 0.00%

We'll charge £75 a year if your client takes income from the drawdown part of their self-invested personal pension (SIPP). This charge will be set up when their first drawdown pension payment is made, and will apply each year after that to cover ongoing administration.

While investing through the gross general investment account (GIA) means no tax is deducted from your client's fund, some external product providers will apply a charge for investing in their product wrappers. 

Investment charges

These charges cover the cost of managing investments and checking they’re performing as expected. They’ll vary depending on the assets chosen. The fund charge is sometimes called the ongoing charges figure (OCF) or total expense ratio (TER). This charge applies to the following:

  • Insured funds
  • Collectives
  • Investment trusts
  • Exchange-traded funds (ETFs)

The charge will vary depending on which asset your client chooses to invest in. You can find out which are available, and their associated charges here.

A £15 fee will apply to any sale or purchase of equities and investment trusts. We'll take it from the cash facility.

A £10 fee will apply to any full sale or new purchase of ETFs. We'll take it from the cash facility.

If the amount held in ETFs increases or decreases, either as a result of automatic rebalancing or you actively change this, the charge won't apply. It only applied to new purchases or full sales. 


Other dealing related charges

Stamp duty is payable on any purchase of investment trusts and equities made through our stockbroker service Winterflood.

The amount of stamp duty your client will pay is worked out at a flat rate of 0.5% (rounded up or down to the nearest penny) based on the purchase amount.

For example if shares are bought for £1,000 your client will pay £5 stamp duty.

This is a charge automatically imposed on investors, and is collected by our stockbroker Winterflood, when equities or investment trusts are bought or sold with an aggregate value of more than £10,000. The charge is £1, and the money raised goes to the PTM.

Investment entry and exit charges may also apply. Please refer to either your Key Information Document, Key Investor Information Document or fund factsheet for details.

If you and your client decide to use a discretionary fund manager (DFM) to help manage your clients’ investments, we’ll pay the agreed level of charge to this manager on your client’s behalf. The fees charged by DFMs vary. We’ll take the charge from the cash facility.

Adviser charges

These are the charges for the advice you give and are agreed between you and your client. These charges can be:

  • initial;
  • ongoing, and
  • ad hoc.

These charges will be taken as either a percentage or monetary amount from the product wrapper cash facility, depending on what you agree with your client. Any charges agreed between you and your client will be shown on your client's personal illustration.

You can find out more in our Charges guide (PDF - 392k)(Opens new window)