Royal & SunAlliance has launched a Trustee Investment Plan (Tip) with annual management fees which d...
Royal & SunAlliance has launched a Trustee Investment Plan (Tip) with annual management fees which decrease as the fund size increases.
The Tip, available via the group's Pensions Solutions administration system, is aimed at trustees and managers of self administered exempt approved pension schemes and Sipps.
It pays no initial commission and provides remuneration only via annual commission, which can be sacrificed to provide a lower annual management fee.
The base annual management charges are 0.8% for funds under £50,000, 0.7% for funds between £50,000 and £149,999, 0.6% for funds from that level up to £245,999, 0.5% for funds up to £499,999, and 0.4% for funds over that level. Those charges are based on a 0% funds based commission taken by the adviser.
For each 0.05% fund based commission taken by the advisor the annual management charge rises by an equal amount up to 1.5%, a maximum fund based commission of 0.7%, on a pot of less than £50,000.
The plan accepts single premiums only and has a minimum investment level of £10,000.
Subsequent contributions can be made with a minimum investment of £5,000.
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