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Axa Wealth reveals RDR advice charges for bancassurance arm

UK pound sterling currency notes money 440

Axa Wealth has set out what it will charge for investment advice through its bancassurance partnerships with The Co-operative Bank, Clydesdale and Yorkshire Banks and West Bromwich Building Society.

Customers of the single-tied advice service will pay an initial advice charge of 3.25 per cent of assets invested regardless of the investment amount. Customers who come in for initial advice who do not go on to take out an investment product will not be charged. Any additional investments would be levied at the same initial advice charge rate.

Axa says there is “currently no charge” for ongoing service or reviews that do not lead to an additional investment, though a spokeswoman says this will be kept under review.

There is a one-off platform implementation charge of 1.25 per cent and a 0.4 per cent annual platform charge which is wrapped into the fund charge.

Bancassurance customers will not be eligible for Axa’s loyalty offer which rewards clients for investing in Architas funds through the Elevate platform.

In October 2011, Axa announced it would waive the Elevate platform charge for the life of the Architas investment, provided it was held until the end of 2012.

It also offers an annual loyalty payment equal to 75 per cent of the platform charge for every year clients remain invested in Architas. The offer runs until the end of the year.

There is no minimum investment requirement to access advice. Advice is given on Axa products only, with access to external fund managers via Architas’ multi-manager range.

Money Marketing revealed last week what some of the high street banks are charging for restricted investment advice.

Lloyds’ upfront charging structure starts at 2.5 per cent on the first £300,000 invested, while HSBC starts at an upfront fee of £950 on assets up to £75,000, and 1.3 per cent on assets between £75,0001 and £150,000.

Royal Bank of Scotland is charging £500 to set up a financial plan and a fee when the client invests, which starts at 1.25 per cent for assets up to £500,000.

Nationwide is charging 3 per cent initial and 0.5 per cent for ongoing advice.


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. 1.25% just for holding funds on platform?! And just how will the Axa adviser present this additional RIY to clients as value for money?

    Methinks this is mannah from heaven for other advisers… Clydesdale/Yorkshire customers please form an orderly queue!

  2. No charge for ongoing advice, but a platform charge that is up to 1% higher than the rest of the market. Transparency – just what RDR intended!

  3. So unless I’m reading this wrong, its essentially re-badged commission?

    Thought advice was the commodity, not the product.

  4. Agreed – it is commission in disguise (although not the best attempt to hide it!!!). Same old smoke & mirrors.

  5. They have always charged 4.5% as an initial fee, so it was never difficult taking their clients. Seems they don’t want to make it any harder.

    It must have taken their boffins months to come up with this new world advice fee structure!!!!!!!

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