Advisor charges query

ferry

I only have a small pension with Aegon and generally dont really study my annual statement. They seem to have changed the format recently and I have spotted a monthly 'advisor charge'of varying amounts between £31 and £33.
Considering i never use their advisors does this sound right? 

Thanks as always

dunstonh

Considering i never use their advisors does this sound right? 

It is unlikely Aegon is making a mistake.

However, there can be some quirks.  For example, if it is a commission contract rather than a fee based contract and the adviser set it up to rebate the commission, then the systems will show the commission as an adviser charge but it doesnt show the rebates at all.   

Or, if it is a commission based contract and no rebates then it will show the commission as an adviser fee.   Now, that adviser may no longer exist and the provider keeps the money in those cases. And if you ask to cancel the adviser charge, on a commission contract, it will stop the adviser being paid (if they are still around) but it will not lower your charges.

if its a post 2012 contract, which is when commission was banned on new plans, then adviser fees would be explicit and have to be for services provided.   if its a pre 2013 contract, then its likely to be commission.

ferry

Thank you. 
So breaking this down, if its relevant the pot value is just sub of £40k which was invested with Aegon only around 2 years ago do I have grounds to question the monthly charge? 
Also for clarity, I dont expect to have their advice on tap for free should I ever need it!

Appreciate the help on this 

dunstonh

So breaking this down, if its relevant the pot value is just sub of £40k which was invested with Aegon only around 2 years ago do I have grounds to question the monthly charge? 

So, a plan set up around 2 years ago is post RDR (1 Jan 2013).  That means any adviser charge made has to be for the provision of services.   There will be no commission (so no legacy plan fudging onto new systems).    

This means the adviser has to be doing something that you agreed with them to do.   Typically, that is "at least annually" -  many do that on a per tax year basis.

Also for clarity, I dont expect to have their advice on tap for free should I ever need it!

Many advisers will provide ongoing advice in a whole range of areas where ongoing is being paid.  However, some do not.

Effectively, the charge is in return for a service that they have agreed to deliver.     They cannot just take the charge and do nothing.

sandsy

OP, are you sure you've only had it a couple of years? Is it the same pension that you asked about in October 2020 which posters thought might be an old Scot Eq contract?

https://forums.moneysavingexpert.com/discussion/6204973/small-flexible-pension-plan-with-aegon

dunstonh

sandsy said:

OP, are you sure you've only had it a couple of years? Is it the same pension that you asked about in October 2020 which posters thought might be an old Scot Eq contract?

https://forums.moneysavingexpert.com/discussion/6204973/small-flexible-pension-plan-with-aegon

If it is that plan, then the Aegon SE FPP was only available upto 2012.