Charges

For business held on the Aegon Investment Platform (for direct business and Funds Network please contact us)

Introduction

This page sets out the charges for using FDD Fundmarket, powered by Aegon. Financial Discount Direct’s charges and Aegon’s charges for using the Platform are levied separately.

Financial Discounts Direct Service Charge

The Financial Services Direct Service charge is for arranging investments on your behalf and providing ongoing servicing of your account.

The annual service charge is taken monthly and is levied on all of the commission-free funds that you hold.

Our charge is tiered and ranges from 0.45% to 0.25% of the value of your investments. (See the table below for full details).

Tier    Cofunds Portfolio Value   Service Charge
1 First £50,000   0.45%
2 Next £100,000   0.40%
3 Next £100,000   0.35%
4 Over £250,000   0.25%

 

Example 1: Example 2:
Client portfolio of £75,000 Client portfolio of £175,000
First £50,000 @ 0.45% = £225 First £50,000 @ 0.45% = £225
Next £25,000 @ 0.40% = £100 Next £100,000 @ 0.40% = £400
  Next £25,000 @ 0.35% = £87.50
   
Total annual Service Charge £325
at an average of 0.43%
Total annual Service Charge £712.50
at an average of 0.41%

Aegon Platform Charge

The Aegon services complement those provided to you by Financial Discounts Direct and provides the technology for the Platform. Aegon make an annual Platform Charge for their services. The charge is for arranging, safeguarding and administering your investments.

This charge is taken monthly and is levied on all of the commission-free funds that you hold.

Aegon charge is tiered and ranges from 0.20% to 0.15% of the value of your investments. (See the table below for full details).

We have been able to negotiate preferential terms for Financial Discounts Direct customers. These rates represent a saving of between 20% and 30% compared to Aegon Standard Platform Charge for portfolios up to the value of £500,000.

Tier Aegon Portfolio Value   Platform Charge
1 First £500,000   0.20%
2 Next £500,000   0.18%
3 Over £1 million   0.15%

Full details of Aegon Platform Charge and how it is calculated can be found in the Aegon Platform Key Information Document and Terms & Conditions which can be downloaded here.

The deduction of the Platform Charge and our Service Charge will appear on your statements and transaction history.

How the Service and Platform Charges are collected

Aegon will collect both their Platform Charge and our Service Charge from your Aegon GIA Cash Facility each month.

At the beginning of each month Aegon will work out the charges for the previous month, using the daily balance of your portfolio.

If there is enough money in your Aegon GIA Cash Facility, Aegon will ring-fence their Platform Charge and our Service Charge.  If there isn't enough in your Aegon GIA Cash Facility they will sell a number of units in the largest commission free fund you hold.  If you do not want these charges to be taken in this way then you can keep enough monies into your Aegon GIA Cash Facility to cover any charges.

The deduction of the Platform Charge and our Service Charge will appear on your statements and transaction history.

Fund Manager Charges

All the funds available via Aegon are commission-free and have no initial charge.

The fund manager charge is taken by the fund manager as payment for their management of the fund and is reflected in the calculation of the daily unit price.

You can call customer services or visit our website to get full details of any available fund including the charges, the Key Investor Information Document (KIID) and a fund factsheet.

An illustration with an aggregate cost for the funds in which you are investing will be provided prior to investing, in cases where we are aware in advance of the funds in which you wish to invest in. In all other instances, an illustration will be provided on application.