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AJ Bell unveils RDR charging structure

Andy Bell AJ Bell grey
Andy Bell

AJ Bell has announced the new Sippcentre RDR charging structure, which will apply from 1 January 2013.

The basic wrapper charges will be applied depending on the wrapper used and the amount invested using Sippcentre’s in-house Funds and Shares Service, which is currently known as the Advisory Option. This allows clients to invest in Isas and dealing accounts as well as Sipps. The dealing is done online through AJ Bell’s in-house fund and share dealing platform.

Under the basic wrapper charges, there will be an initial set-up fee of £120, which will be waived if £25,000 or more of Sipp assets are invested using the Funds and Shares Service.

There will be a quarterly administration fee of £25 for assets worth up to £25,000, £35 for assets between £25,000 and £50,000 and £45 for assets above £50,000. The admin fee will be waived if £200,000 or more of Sipp assets are invested using the Funds and Shares Service.

AJ Bell will charge £60 for transfers-in, with no additional charge for assets transferred in-specie to the Funds and Shares Service.

Basic wrapper charges

AJ Bell basic wrapper RDR charges

The Funds and Shares Service will levy an annual custody charge of 0.2 per cent for assets up to £1m, 0.15 per cent for assets between £1m and £1.5m, 0.1 per cent for assets between £1.5m and £2m and 0.05 per cent for assets above £2m.

This will be based on client assets across their Sipp, Isa and general investment account.

Dealing charges will not be applied to the regular investment service. The bulk dealing service will trigger a £1.50 charge for each buy and sell, the online service will trigger a £3.95 charge, the telephone service will levy a £29.95 charge and a £50 charge will apply for paper forms.

Funds and Shares Service charges

AJ Bell Funds and Shares Service RDR charges

The initial set-up, administration and transfers into an Isa or general investment account will not incur charges.

AJ Bell chief executive Andy Bell says: “Whilst this charging structure is new, our proposition continues to focus on a blend of price, service and functionality.”

The Lang Cat principal Mark Polson says: “I am very impressed, the charges are pretty sharp. This is a sign that the SippCentre is branching out from being a Sipp provider to becoming a proper platform.”


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