1. Your commission-included funds
You will remain invested in the same funds in IPS and you will continue to pay the OCF on each commission-included fund. However, from 1 April 2016, the IPS Fee will be replaced by an IPS Platform Charge. Your current IPS Fee will be returned to you as a rebate after deduction of tax as additional units into the fund where you have your largest investment, to ensure you’re not charged twice for Legal & General’s services.
Your new annual IPS Platform Charge is a fixed percentage based on the value of your IPS holding. It will be charged separately and collected monthly from your IPS Cash account.
At the same time, here at Nationwide we are reducing the commission we receive on some funds, as part of our ongoing commitment to deliver value for money to our members. From 1 April 2016, you will pay no more than 0.50% Nationwide commission per fund.
2. Your commission-free funds
You are already paying an IPS Platform Charge on your commission-free funds. This is currently a variable percentage based on the total value of these funds in your IPS account.
From 1 April 2016 this will change to a fixed percentage charge, which is calculated annually and paid monthly and is based on the value of your holding. This means the same IPS Platform Charge will then apply across all the funds in your IPS account.
Please note, units may be sold from your investments to pay the IPS Platform Charge. Any other separate charges you pay on these funds will continue unchanged.