You will find the Current Plan Charges step in the following review sections:
- Review of Your Existing Investments
- Review of Your Existing Pensions
- Review of Your Existing Retirement Income Plans
This step has been designed to allow you to provide the client with a summary of the charges that currently apply to their existing plan(s) (before any new recommendations are made) clearly and concisely, and in a 'MiFID II-friendly' format that the client can still easily understand - easier said than done! Within Genovo, plan charges are split into four categories:
- Product
- Platform
- Adviser
- Investment Management
It is anticipated that these four categories will accommodate all plan charges.
Investment Management Charge
You should enter the combined total of all investment-related charges in the 'Investment Management' field. This should include, amongst others, the AMC / TER / OCF, as well as any additional transaction or DFM / DIM charges. This can be achieved in two ways:
1. Simply enter the total of all investment-related charges in the 'Investment Management' field, by clicking on the Edit pencil icon for the plan.
2. Add the granular breakdown of the investment-related charges in the plan's Current Investment Strategy.
On doing so, the 'Aggregated Weighted Average Charge' of a plan's Current Investment Strategy will be automatically pushed into the 'Investment Management Charge' field of the Current Plan Charges table, if the following two conditions are met:
- The total allocation of all investments within the Current Investment Strategy equals 100%; and
- All investments within the Current Investment Strategy have a 'Total Recurring Charge'.
Adding plan charges
The Current Plan Charges can be entered as a percentage or a monetary value. If you enter a percentage charge, the equivalent monetary charge will be automatically calculated for you. However, this can be overwritten if required (e.g. it does not match the figure included in the provider's literature due to differences in calculation methods). The combined total of the plan's charges is also automatically calculated for you.
This article provides further information about how the monetary charges are calculated in this step.
A summary of the plan's charges is then displayed within the charges table included within the step as well as the resultant report.
Other charges information
Any further information regarding the charges of the plan(s), or additional charges that cannot be accommodated within one of the four charges categories can be included in the text box at the bottom of the step.
Information can be typed, pasted or dictated (using the speech recognition button)
Copy down charges
If you're reviewing multiple plans with the same or a similar charging structure, you will find it much quicker to use the 'Copy down charges' function rather than re-key this information for each plan. To copy down the charges of a plan to the plan directly below it, simply click on the 'Copy down charges' icon to the right of the edit icon.
Having copied down the charges to a plan, you can then, if required, edit them by clicking on the edit icon for that plan.
If you have multiple plans in the list and you wish to copy down the charges from plan 1 to plan 5 say, you will need to keep copying down the charges from plan to plan i.e. plan 1 to plan 2, plan 2 to plan 3 and so on.
If the plan you wish to copy the charges to, is not directly below the plan you wish to copy them from, you can easily re-order the plans using the drag handle in the Plan Summary step.
Consolidated Plan Charges *STANDALONE ALTERNATIVE* section
If you'd prefer that the charges information for all of the plans you've included in the review and recommendation was consolidated within one section, you'll find further instruction on how to achieve this here.