Charges Paid over the past year - Annual Review

Help please? Just wondering how others are doing this.

MiFID II says that we need to provide a personalised breakdown of the charges paid over the past year.

The platform has provided the charges taken by the adviser and the platform, but obviously not the funds.

If I use the current value are very elevated in % terms because a withdrawal was taken in the year of the review and at the same time, if I just multiply the ongoing fund costs by the current value, that will not provide a real picture of what has been charged.

I wondered what other are doing.


  • It's far from perfect, but I'm taking an average(ish) of the portfolio value over the last year.

    A lot of our clients are on Transact, so historical valuations are easy to pull off - for those, I go in monthly intervals back from the meeting date. For things where it's trickier to get info I tend to average out the figures that I can realistically get (quarterly valuations for Canada Life bonds etc).

    Obviously this is still only a "best guess" because it can't include daily fluctuations or changes in the ongoing fund charges over the time period* but it's better than nothing!

    (*I have actually attempted this a bit as we did a mass switch from 7IM to L&G/Vanguard part way through the year, which impacted the charges significantly, but perhaps that's overkill!)

  • because of this precise issue (or if the fund values have decreased) we are stating what the % charge is i.e the ongoing advice charge is 0.50% pa and the £ value that relates to.

    We aren't calculating the % of the end of period value in the table, but below it we say 'for your information the total charge is equal to 16.17% of the end of period value' (or something like that)

  • benjaminfabibenjaminfabi Moderator
    edited November 2019

    Pretty much what Becca said, but I don't spend any time on getting monthly values. Simple annual average (life is too short!)

    Excel formula (where named items are obtained elsewhere.

    Ongoing-fund-costs * AVERAGE(opening-value,closing-value) * holding-period

    Any fund switches (where 100% is switched in/out) through the year are reported by capturing the change in the holding period. Any funds not held at the closing period are reported with a statement that says: "in addition to the costs paid on funds currently held, you paid estimated costs of £x on funds sold during the reporting period."

    Yes, there are pitfalls in this when there are one-off in/outflows but I don't care enough to do anything about it. This works well enough, for most client holdings, most of the time.

    Because platform and adviser costs are monetary values available from the transaction statement, I total these for each wrapper and then divide them into the average value over the period.

    Also, why isn't Aviva giving fund charge information in its disclosure? Every other platform I deal with does (although my confidence level in the calculations varies widely - Transact's, for example, is just plain wrong)

    Benjamin Fabi 
  • thanks all, just on the phone to Aviva now to establish why those charges are not disclosed.

  • Aviva doesn't have that functionality.

  • > @Nathan said:
    > Aviva doesn't have that functionality.

    What, the functionality of being compliant with the mifid ii ex-post disclosure rules that came in nearly two years ago?
    Benjamin Fabi 
  • Yep, that'll be the one!

  • and in any case the client really cares

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