We've changed our adviser charging limits
Following a review of adviser charges, the following maximum limits will apply to all applications submitted from midnight (00.01am) on Friday 1 March 2019. The limits apply across all plans/products except the Prudential ISA, for which the existing limits still apply.
Type of charge
|Initial Charge %||5%||the lower of|
|Initial Charge £||£20k|
|Initial Charge - regular premium||5% of premium or 25% of first 12 monthly premiums|
|Ongoing Charge %||1%||of the fund value|
|Ad hoc charge £||2% of fund value in a 12 month period|
We’re making these changes for the benefit of customers
Whilst we recognise that adviser charging is agreed between an adviser and their client, we’re committed to achieving good outcomes and fairness to customers. As such, where we facilitate adviser charging on a product, we have a responsibility to review/monitor these charges and their potential impact on the overall return a customer may receive.
We’ll review requests for adviser charges which exceed these limits before you submit the application
If you have a case where the level of adviser charge may exceed these limits, please let us know before you submit the application so we can review it in advance. To carry out this review, we’ll need you to send us further additional information around the background of the case and/or client which we’ll use to consider whether we are able to approve the level of adviser charge.
What happens next
After reviewing the information you give us, if we approve the level of adviser charge the case will proceed as normal.
If we’re unable to support the level of adviser charge from the product, we can cap the charge at the maximum level, or you can agree with your client a different level or method of charging. If you do agree a different level or method of charging from the product with your client, you’ll need to make sure that the disclosures provided are accurate. We will be able to confirm which forms are required depending on the product and scenario.