Tiered adviser charging is available on our platform.
As well as giving you more flexibility to deliver valuable advice to more clients, the new option provides additional choice for many advisers taking the opportunity to review their fee structures in light of Consumer Duty, sometimes for the first time since RDR.
Tiered charging adds to your existing adviser charging options already available on Quilter’s platform:
- Fixed amount
- Percentage of account value
- Tiered charge to reward higher value clients.
How can tiered charging benefit your business?
Tiered charging can help you reflect the value you offer to your clients on each investment, showing the regulator you are delivering value according to Consumer Duty rules.
Cross-subsidise fees
- Offset the amount you need to charge on one investment with lower charges on another.
Reward client loyalty
- Reward higher investment values held by your clients. The more they hold the lower your fees.
Onboard new clients
- Ensure your fees are competitive to onboard new clients or to target particular segments or investment lines.
How it works
The amount your client pays for your advice is always based on their total platform holdings, so you can offer them better value when they invest more.
- You set the tiers and percentages for your adviser charging. You can have multiple different structures.
- You choose when to apply a particular charging structure (including our existing adviser charge options) to each client’s individual product.
- Although the charge rate may be different for each product, the charge band your client falls into for that product is still based on their total platform holdings, rewarding higher value.
To ensure you implement this in the best way for your business, and to avoid any unintended consequences when applied, please contact your local platform specialist who will be able to help you set this up.
Examples of how you could use tiered charging:
Simple charging
“I charge a tiered fee to all clients on all products.”
Fee capping
“My tiering works so that my clients never pay over a maximum amount.”
Multiple wrappers
“I charge my client a fixed fee on their pension and then proportional fees on the rest.”
Start benefitting now
The Quilter platform ‘master user’ at your firm sets up the tiered structures on our platform and advisers can then choose which structure to apply when writing new business. These charging structures apply at product (‘sub-account’) level rather than per customer (‘head account’ level).
- See our step-by-step guide.
- Use our tiered adviser calculator to see what your overall blended rate and annual fee might be, and compare your current fee structure to a new tiered structure.
Important information
- Pension charging is for the Collective Retirement Account only.
- Adviser charges on the Collective Investment Bond count as withdrawals for tax purposes.
- Please note, our Flexi ISA allows advisers fees to be replenished by the client within the tax year, but this is not available on our Junior ISA.
- For guidance on the terms and maximum limits for all adviser fees please see our remuneration guide.
- Before implementing tiered adviser charging in your business, we strongly recommend that you get in touch with your local Quilter Platform Specialist, who will be able to ensure that it is set up in the most effective way.