Your Guide to Generating Auto Disinvestment Quotes. Funding Wrap Charges

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1 Your Guide to Generating Auto Disinvestment Quotes Funding Wrap Charges

2 Introduction To accommodate Funding Wrap Charges (auto disinvestment), we ll provide you with the facility to illustrate the effect on Personal Portfolio (PP) and/or ISA if there are deductions (via the new auto disinvestment functionality) which are used to fund Wrap Cash. These quotes are being built to complement the existing New Business Quote and will provide enhanced capability to illustrate the effect of: Adviser Charge payments Withdrawals Fund Based Renewal Commission (FBRC) Funded Initial Commission (FIC) This new quote functionality will allow you to show the effect of all charges that are being taken from Wrap Cash, regardless of the sub account that the charges relate to. So if you are making withdrawals, or allowing auto disinvestment, from say Personal Portfolio to cover Offshore Bond charges, you can show the effect of these withdrawals on the Personal Portfolio quote. You still have a regulatory requirement to disclose the likely impact of adviser charging if it s being funded by cash sweeps from the Personal Portfolio or ISA these new quote options are designed to help you do so. The enhanced quotes (one for PP, one for ISA) will be accessed from four locations on the Wrap platform: New Business New Client wizard New Business Existing Client wizard Maintain Adviser Charges wizard A new Quotes screen under the Performance tab When selecting the Create Quote button you ll see an input field pop up screen. The fields will be pre populated from information already held on the platform (including from the wizards). The purpose of this guide is to explain the various input fields and the assumptions we ve made when pre populating these fields. Contents 03 Charges for Personal Portfolio 07 Withdrawals taken from chosen sub account 10 Commission Quotes Guide 02

3 Charges for Personal Portfolio & ISA Charges for the Personal Portfolio and Wrap ISAs (Cash and Stocks & Shares) will continue to be applied to Wrap Cash. If there are insufficient funds in Wrap Cash when an on going charge* is due, we ll seek to pay this charge by deducting cash from either the PP or ISA in this order: Personal Portfolio cash If PP cash has insufficient funds, we ll then disinvest proportionally from the PP Mutual Funds and include an excess amount of 100 as per the Client Terms and Conditions to provide surplus funds to Wrap Cash. If there are still insufficient funds we ll seek funds from: Cash within Stocks & Shares ISA If S&S Cash has insufficient funds, we ll then disinvest proportionally (including the 100 excess) from the ISA Mutual Funds. *The charges we ll seek to pay are: PP & ISA Wrap Investment Charges PP & ISA outstanding Funded Inital Commission (FIC) charges PP & ISA Fund Based Renewal Commission Managed Portfolio and Discretionary Investment Manager charges Ongoing Adviser Charges taken from Wrap Cash (i.e. excluding sub account Level OAC for SIPP from SIPP Cash) We ve gathered information on the charges and withdrawals data from the client s details on Wrap so that you can generate an illustration. The quote will also allow for up to three separate investment instructions. These are existing monies, transfers and regular premiums. Adviser Charges Quotes Guide 03

4 Recording details of Adviser Charges from Wrap Cash This is where you can enter details of the Ongoing Adviser Charges (OAC) that have been agreed and that you would like to include in the quote. The first option Sub Account OAC is where you can record details of the OAC that is being taken for the sub account that this quote relates to. So if this is an ISA quote, you d type in the ISA OAC. The details you enter here can be either the OAC being set up through this new wizard but you can include OAC for this sub account that was set up previously. Either percentages or monetary amounts are fine just select from the dropdown list. The second option Other Sub Account % OAC (including Wrap OAC) is where we show the details of OAC for other sub accounts SIPP, Bond, ISA etc if that other OAC is also being taken from Wrap Cash. We convert these % amounts into current monetary values but the quote will factor in future growth. We will use the most regular occurrence as the frequency so if you had one OAC arrangement as monthly and one as quarterly, we d show monthly here. The third option Other Sub Account OAC (including Wrap OAC) is where we show the details of monetary OAC for other sub accounts but only, as before, if that other OAC is also being taken from Wrap Cash and again we will use the most regular occurrence as the frequency. If you want the quote to include any one off charges, you can enter these here. For any one off ISA or PP charges, please remember to allocate money to cover these as we will not be able to disinvest to cover them. Quotes Guide 04

5 Withdrawals taken from chosen sub account Regular Withdrawal Monetary Regular Withdrawal % of chosen sub account This section is for including any regular, fixed amount withdrawals that have been set up for the sub account that this quote relates to (i.e. the ISA or the Personal Portfolio). These could be withdrawals that already exist or any that you have set up as part of the current wizard. This section refers to any regular percentage based withdrawals set up on the sub account for which this quote is being generated (i.e. the PP or ISA sub account). These could be withdrawals that already exist or any that you have set up as part of the current wizard. Withdrawals Type Value Frequency End Date Select Monetary or Percentage OAC This is the monetary amount of withdrawal per frequency, or the percentage value of withdrawals each year. This is the frequency of the withdrawal. If an end date has been specified, this will be shown. Quotes Guide 05

6 Regular Withdrawal % of other sub accounts (including portfolio level) This section covers withdrawals which are based on the value of other sub accounts e.g. if creating a quote for a PP, any withdrawal for the PP is included in either the sub account Regular Fixed Withdrawals sections above ( or %). Withdrawals which use the value of other sub accounts in their calculations will show the withdrawal from the sub account the quote is for. This section will include the sum of all percentage based withdrawals derived from value of ISA, Onshore Bond, International Portfolio Bond or SIPP. The quote calculation will take account of these withdrawals. Value This is the current monetary equivalent expressed as a monetary amount of the percentage based withdrawal from all other sub accounts per frequency. In the quote we ll assume that this amount increases over time as we assume that the value of the other sub accounts will increase over time. Please refer to the quote for further information. Frequency End Date This is an amalgamation of the frequencies of all sub accounts which have percentage based withdrawals. We assume the most frequent i.e. monthly > quarterly > half yearly > annual. If an end date has been specified, this will be shown. If there is more than one withdrawal instruction, and they all have end dates, but these are not aligned, we ll assume all withdrawals continue until the last/latest end date. If one of these has no end date we ll assume all withdrawals continue throughout the quote. Single Withdrawals This is where you can record details of any single withdrawals that have been or are being set up from the sub account that this quote relates to. Regardless of whether the single withdrawal is a percentage or fixed monetary amount, and regardless of whether you just have one or several single withdrawals set up for the sub account, you will need to enter a single monetary amount here. For quote purposes, percentage withdrawals are converted to monetary amounts based on the current value of the sub account. The actual withdrawal will however be based on the sub account value at the time the withdrawal is being carried out. Only regular withdrawals can be set up using the Client Sign Up or New Tax Wrapper wizards. If you wish to set up a single withdrawal, you need to use the Withdrawals option in the Client / Create Orders menu. Quotes Guide 06

7 Generating Auto Disinvestment Quotes Guide Commission FBRC (Fund Based Renewal Commission) This section is where you can choose to include any existing FBRC charges for the sub account that this quote relates to. The quote will exclude FBRC by default. Setting up an OAC arrangement or carrying out any trigger events on the ISA or Personal Portfolio will switch off the existing FBRC in any case. Value This is the current percentage based value of FBRC shown on the platform. FIC (Funded Initial Commission) Please note that we ve combined all of the outstanding additional charges and assumed a single end date (this is the last payment date) for the purposes of the calculation. This means that the quote may not correspond with the amount of charges that are outstanding and will overstate the effect of the additional charges remaining. Frequency This is the frequency of the regular charge. Quotes Guide 07

8 Generating Auto Disinvestment Quotes Guide For further support, call the Adviser support team on: Calls may be monitored and/or recorded to protect both you and us and to help with our training. Call charges will vary. Standard Life Savings Limited, provider of the Wrap Platform, is registered in Scotland (SC180203) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Savings Limited is authorised and regulated by the Financial Conduct Authority. WRAP Standard Life