Wrap charges and interest rates

How are my charges calculated?

Your platform charge is calculated based on the total value of your platform eligible assets – that is, the total value of the cash and investments you hold on the Wrap platform. The platform charge is applied in tiers and higher value tiers are charged at a lower rate. This means the greater the value of your platform eligible assets, the lower your annual % platform charge will be. When you get your annual statement, you will see one % amount – this is the weighted average of your platform charge across the tiers.

Your product administration charge, if it applies, is a flat fee which is deducted in addition to your annual platform charge.

We deduct 1/12^th of the annual platform and product administration charge on the 5^th of each month, based on the value of your Wrap platform eligible assets on the last working day of the previous month. The table below outlines the tiers and the % charge on an annual basis.

From April 2020, the Wrap platform charge has been reduced and simplified from 6 tiers to 4. The starting rate for the platform charge has been reduced from 0.40% to 0.35%. The annual product administration charge for the Wrap SIPP has also been reduced from 0.15% to 0.05%. See below for the new Wrap pricing structure.

*Platform eligible assets are:

• Cash in your cash accounts (including Wrap Cash account).
• All investments in your Wrap account (with the exception of listed securities or off-platform investments in your Wrap SIPP) held and/or managed on the platform.

Standard Life Savings Limited is the provider of the Wrap Cash, Personal Portfolio, and ISAs. Standard Life Assurance Limited is the provider of the Wrap SIPP and Wrap Onshore Bond. Standard Life International dac is the provider of the Wrap Offshore Bond.

If you would like more information about your charges or how they impact your Wrap account, please call the customer centre on 0800 027 4675. Call charges will vary.

Drawdown price lock

From April 2020, the Standard Life Savings Limited Wrap is offering a ‘Drawdown price lock’ which allows you to ‘lock in’ your platform charge at its current rate. The price lock takes into account the value of all platform eligible assets (PEAs), but only applies to the platform charge for your Wrap SIPP and can only be used when your SIPP is in drawdown. The platform charge for your other products will continue to change as the value of your PEAs changes, as illustrated in the table above.

You should seek financial advice before locking in your SIPP platform charge, as it might not be suitable at this time and mat not be right for everyone. There may be a charge for this.

For more information or to discuss your options, please call the customer centre on 0800 027 4675. Call charges will vary.

How are my charges paid?

Personal Portfolio (PP), Individual Savings Account (ISA) and Onshore Bond

Personal Portfolio, ISA, and Onshore Bond charges are deducted from Wrap Cash. If there is insufficient cash available to cover Personal Portfolio or ISA charges, the platform follows a process called auto-disinvestment. There is more information on this process below. If there in not enough cash available to cover Onshore Bond platform charges, cash will be made available through cancellation of units within the Bond.

SIPP and Offshore Bond

The platform charge and product administration charge for the SIPP and Offshore Bond (or International Portfolio Bond (IPB)) are deducted from the cash available in the cash account within the product. This is due to tax rules for these products. If there is not enough cash available within the product, the platform will carry out an auto-disinvestment exercise. Please see below for information about auto-disinvestment.

Personal Portfolio and ISA

When there isn’t enough money in Wrap Cash to cover the platform charge for either your Personal Portfolio or ISA (or both), the platform will follow this path in order to cover the charges:

The Wrap platform looks to take the charge from the PP first so that it won’t impact your ISA contributions for the tax year. The value of your platform charge plus an £100 is sold down as part of this process. Any remaining cash after the charges has been paid will stay in Wrap Cash for future charges – the idea here is to avoid selling investments every month. If you don't hold any cash or investments in your Personal Portfolio, the auto-disinvestment process will look to take the charge straight from your ISA.

SIPP and Offshore Bond

When there isn’t enough money in the SIPP or Offshore Bond cash account to cover the platform charge and the product administration charge, investments will be sold to top up the cash account in the relevant product.

In this case, 6 months’ worth of platform and administration charges is sold.

Onshore Bond

Like the ISA and Personal Portfolio, Onshore Bond charges are also deducted from Wrap Cash. The important difference with this product is that it does not hold its own cash account, so there can be no auto-disinvestment. In this case, it is our back office teams who will surrender bond segments in order to cover the platform charge and product administration charge.

Listed securities fee structure

There is a charge of £10 per transaction when the total value of your transaction is less than £25,000.
There is a charge of £25 per transaction when the total value of the transaction is between £25,000 and £99,999.
When the total value of the transaction is £100,000 or more, a charge of 0.025% is applied per transaction.
If you are buying or selling listed securities within your SIPP, there is an additional £12 fee per transaction, capped at £394 annually

For example: You would like to sell all of the equities you hold in your Wrap personal portfolio. The fee calculation would look like:

Equity A – total sale value: £1,500 (transaction 1)
Equity B – total sale value: £27,000 (transaction 2)
Equity C – total sale value: £500 (transaction 3)
Total cash generated from sale of securities: £29,000.

As you are selling three types of equities, and the total value of the sale is between £25,000 and £99,999, your fee equates to £25 x 3. A fee of £75 will be applied. For more information please see the Wrap client Terms and Conditions (909KB).

Off-platform investments (OPIs)

Off-platform investments are those held within a Wrap product but not directly on the Wrap platform. These types of investments are not traded on the Wrap platform and are bought and sold directly with the provider. OPIs include physical property holdings, deposit accounts, structured investments, and external discretionary managed portfolios. OPIs can only be held within a SIPP or an Offshore Bond.

As OPIs are not considered platform eligible assets (PEAs), they are not included in the calculation of your annual platform charge or product administration charge. OPIs are charged separately, usually on an annual basis. If you’ve removed your financial adviser from your account and you currently hold OPIs, you may continue to do so. If you would like to add an OPI to your Wrap SIPP or Offshore Bond, you will need to assign a financial adviser to your Wrap account.

Wrap SIPP

Depending on the type of OPI you hold, there may be additional transaction charges. These charges would be discussed with you when you call to give the instruction. If you are not sure whether you hold an off-platform investment or would like more information, please call the customer centre on 0345 279 1001. Call charges will vary.

International Portfolio Bond (Offshore Bond) for Wrap

OPI charges for the International Portfolio Bond are deducted monthly, in arrears, from the cash account with the product. If you would like more information about OPIs within your bond, please call the customer centre in Dublin on 0345 300 4273. Call charges will vary.

How do I qualify for family terms?

• If the account holders are married or in a civil partnership, their accounts need to have a combined total value of £500,000 in order to qualify for family terms.
• Wrap accounts of close family members can also be linked for family terms, as long as one of the accounts has a value of at least £500,000.
• For the purposes of family terms, a close family member is one of the following: parents, grandparents, children, siblings, spouse or civil partner. 
• A maximum of 10 relevant Wrap accounts can be linked for family terms.