Wrap charges and interest rates

Ongoing platform and product administration charges

Charges are paid to each provider. The platform charge is the fee taken for the services provided to you on the Wrap platform. It is an annual charge deducted monthly from your Wrap account and is calculated based on the total value of your investments and cash held on the Wrap platform. The Wrap platform, as well as the Personal Portfolio and Individual Savings Accounts (ISAs) are provided by Standard Life Savings Limited.

In addition to the platform charge, there is a product administration charge for the Self Invested Personal Pension (SIPP) and bonds. This is shown separately from the platform charge on your statement and is only deducted from your SIPP or bonds, if applicable. The SIPP and Onshore bond are provided by Standard Life Assurance Limited and the Offshore bond is provided by Standard Life International dac.

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.

Drawdown price lock

From April 2020, the Standard Life 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.

What is auto-disinvestment?

Auto-disinvestment is what we call the automated process where the Wrap platform automatically uses existing product cash or sells investments in order to cover charges. This process is different depending on which product(s) you hold.

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.

Dealing charges

The Wrap platform does not apply fees for buying, selling, or switching insured or mutual funds available on the Wrap. If you hold listed securities (which includes equities, corporate bonds, and gilts) or any off-platform assets there will be a fee charged for the sale of these investment types. Depending on the specific investment you have chosen and what product your investments are held in, other charges may apply in line with regulations, such as Stamp Duty.

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.

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.

Discounts

The Wrap platform offers a family discount which allows family members to link their accounts and benefit from a reduced charge. When accounts are linked, the platform charge is calculated based on the total value of platform eligible assets in all linked Wrap accounts, and then applied to each account individually.

Wrap accounts are not automatically linked, so you will need to request that any qualifying accounts are linked.

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. 

Wrap interest rates

Each Wrap account automatically has a Wrap Cash account. There are also cash accounts within most of the products available on the Wrap platform. The Wrap onshore bond does not hold a cash account. The interest rates on all these accounts are variable and may go up and down regularly. Here are the annual gross interest rates we currently pay:

Cash account for Wrap SIPP

A minimum rate of interest equal to the Bank of England base rate on the day in question less 1% will be payable. However, Standard Life Assurance Limited currently chooses to pay a higher rate of interest of 0.00% gross per annum.

Cash account for Wrap offshore bond

From 23 March 2020 the interest rate payable is 0.00% gross per annum. Please note that the interest rate may vary from time to time.

Cash management administration charge (CMAC)

A cash management administration charge (CMAC) is applied for the administration of the cash held in the various cash accounts outlined below.

The CMAC is in addition to any platform and product charges that may apply to these products.

This charge is taken directly from the interest received from the bank(s) used to provide these accounts and so is not deducted from the interest paid to you.

The charges vary depending on the interest received from the bank(s) and may go up and down regularly. We will notify you or your financial adviser if the charge exceeds 1.75%. You should visit this webpage regularly for details of the CMAC.

The CMAC rates stated are example annual rates based on the current interest rates received from the bank(s) used to provide these accounts, and assuming a Bank of England Base Rate of 0.10%. For current or previous CMACs please call our customer centre on 0345 279 1001.