Terminology 30 September 2021 at 2:59PM in ISAs & tax-free savings 2 replies 61 views

Rekusu26

What ho one and all,

These days, all investment statements come with a breakdown on the charges.  I may be stupid but I really don't understand the language.

Service charges / Investment charges / Adviser fees.  What is the difference between these?  Seems to me they are smoke and mirror terms for the company to get more money out of me.

Grateful for a simple explanation.

Thanks and toodle pip

eskbanker

If you're paying adviser fees then your adviser should be able to explain the meaning of all terminology - this is obviously sensible before investing but better late than never.  If you're hoping for details from someone on here, it'll help if you give some context about your investing model, i.e. what you're investing in, how, etc, because chances are that the various fees and charges aren't all levied by a single company....

dunstonh

Service charges / Investment charges / Adviser fees.  What is the difference between these?  Seems to me they are smoke and mirror terms for the company to get more money out of me.

Strange how an attempt at providing greater transparency is actually viewed as smoke and mirrors by you.

Service charges - tends to be product or platform charges.  i.e. an added service charge
Investment charges - tends to be the investment charges.  These are usually broken down into subheadings like (OCF/TER, transaction charges and incidental/other charges - although it depends on your investment type as not all types have all of these or disclose them that way).
adviser charges - tends to be the adviser charge