MIFID II – A clearer view on charges


Helen Luton

Origen Compliance Officer

We always aim to be clear and transparent about our charges. New regulations that have been introduced will provide further clarity on the fees and charges which you pay on your investments, both at outset and on an ongoing basis. Helen Luton looks at these new rules and what you can expect from Origen.

Being clear on charges

One of the key changes introduced by the Markets in Financial Instruments Directive II (MiFID II) and Insurance Distribution Directive (IDD) is to provide yearly statements on the fees and charges you pay on your investment. The key driver of these regulations is to make it clear what the product and advice charges are and their effect on the value of your investments.

Initially, only some investments are in scope, for example unit trusts, Open Ended Investment Companies (OEICs) and Discretionary Fund Manager services, but there are plans to include other products, such as investment bonds, in these charging requirements in the future.

What will these changes mean to you?

Financial services firms that come under the MiFID II regulations (e.g.  Discretionary Fund Managers, Platform/Product/Fund Providers and Advisers) will have to give clients a clear annual breakdown of the charges which have been deducted from their investments. This change comes into effect from 3 January 2019, but you may start to receive some information about these changes from some companies before this date.  

How will Origen keep you informed?

In Spring 2019, you will receive a charges statement if you hold an investment that is within the scope of MiFID II and if you currently receive an annual fund valuation from Origen as part of your Client Service Agreement. This charges statement will provide a breakdown of all the charges that you have paid on your investments during 2018, as well as showing the impact that these charges have had on your investments.

How does this affect how we advise our clients?

It is important to remember that these are not new fees or charges, but your statement will show what you have paid on your investment in 2018.

Your Client Service Agreement will show the ongoing services you receive in return for your total annual recurring payments to us. In addition, whenever we carry out any additional services for you, we always discuss and agree to the advice fee before we progress.

For our clients who are impacted by these changes we will continue to provide an annual breakdown of the fees you pay, and we will let you know the level of services you are entitled to under your Client Service Agreement.

If you do have any questions, please call your Origen adviser or you can contact our Client Liaison Team on 
0344 209 3925.

Calls are charged at your phone company’s basic rate. All calls are recorded for business purposes.

This article is for information only and is not to be taken as Financial Advice.    
CA3078 Exp 11/2019

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