What's changing?


Frequently asked questions

Fees and charges

You pay an annual Platform Charge to Legal & General for setting up and administering your investments, as well as transacting on your behalf through the Investor Portfolio Service (IPS).

The Platform Charge is changing from a tiered structure, which varies depending on the amount you have invested, to a percentage charge. This won't vary by investment amount and reflects a set rate by Legal & General. 

The new charge is a percentage fee for all customers. The rate has been set to reflect the cost of the ongoing administration of your investment, and transacting on your behalf with individual Fund Managers. A percentage fee should make the charge easier to understand. 

Legal & General have sent you a 'Breakdown of Charges' document. This gives you an estimate of what your charges would be after 1 April 2016 if you continue to stay invested in the same funds. 

You pay three separate charges to the people involved in managing your investments:

  • Fund Manager Charge – this is kept by the fund manager for providing and managing the fund.
  • IPS Platform Charge – Legal & General receive this for setting up and administering your investments and transacting on your behalf through IPS.
  • Nationwide Service Charge – this goes to us for all the services we provide. You can find out more in our the Tariff of Charges document below. If you are paying the Nationwide service charge, you can find out more information on your Tariff of Charges. If you are paying Ongoing Service, see our Ongoing Service page.

As well as the IPS Platform Charge, Legal & General also keep the interest earned on any money that you hold in cash on the IPS Platform. You can find out more in your IPS Terms and Conditions. 

The new charges will apply from 1 April 2016. 

The charge you pay currently is variable. This will be replaced by the IPS Platform Charge, which is a percentage fee.

You can see how this change affects you in the 'Breakdown of Charges' document that Legal & General have sent you. 

You don't need to give consent or take any action. This is simply a different way for Legal & General to take the fees applicable to your investment. It's important you understand the impact the change will have on you. 

If you're not happy about the changes, you need to tell us what you'd like to do with your IPS holding before 1 April 2016. You have two other options:

  • You can either sell your investments and receive the proceeds, or
  • Move your holdings to another provider.

If you need more information please contact Legal & General's Customer services on 0345 272 00 89 (Mon to Fri, 9am - 5.30pm – calls may be recorded). 

Please note that Legal & General are unable to advise on your investment(s).

You are currently on a tiered structure:

  • For the first £11,000 invested you pay 0.65%
  • The next £9,000 is charged at 0.29%
  • Any remainder above £20,000 is charged at 0.24%.

You can find more details about the IPS Platform Charge you pay in your annual investment statements and in your online account information. 

The Platform Charge is an annual charge applied as a percentage of your total holdings on IPS and is deducted monthly. More information on how the Platform Charge is collected is given in the next section. 

The letter and the 'Breakdown of Charges' document you received only apply to your IPS Customer Reference shown in the letter. The new rules only apply to ISA and OEIC/Unit Trust holdings on IPS so any other products are unaffected. If you have multiple IPS accounts impacted by these changes then you will receive a separate letter for each account. 

Customers who have invested after 31st December 2012 via a Nationwide Financial Planning Manager:

Customers who have invested before 31st December 2012 via a Nationwide Financial Planning Manager:

Paying your IPS Platform Charge and the IPS Cash Account

The Platform Charge is taken from your IPS Cash Account on a monthly basis. The IPS Cash Account was set up when you first invested through IPS.

If there's not enough money in your IPS Cash Account, Legal & General will sell units from your largest fund and pay the proceeds into your IPS Cash Account in order to pay any charges due. This 'Sale for Regular Payment' instruction will be applied to your account in accordance with the procedures set out in your IPS Terms and Conditions.

If you wish to avoid Legal & General selling units from your investment, you need to ensure enough money is in your cash account to pay the charges. Please see 'How can I add money to my IPS Cash Account?' below for more on how to do this.

Legal & General set up an IPS Cash Account for you when you first invested through IPS. It allows you to manage the movement of cash into and out of your investments. You can use it to:

  • Manage the payment of your IPS Platform Charge
  • Keep your money when it's not invested in a fund
  • Pay for your investments
  • Receive money that you withdraw from your investments
  • Retain income paid out by income units

Your IPS Cash Account is not intended to be used for long-term cash holdings.

To help you keep track of your money, Legal & General have supplied you with a 'Platform Account Reference' that refers to your IPS Cash Account. You’ll need to quote this whenever you add money to your IPS Cash Account. You can find your reference on your last annual statement. 

There are four ways you can add money to your IPS Cash Account:

  • Current account or bank transfer

    You can add money from your current account into your IPS Cash Account electronically. For security, and to guard against money laundering, please verify your Nominated Bank Account with Legal & General first. It’s easy to do, simply call Legal & General Customer Services on 0345 272 00 89 (Monday to Friday 9am - 5.30pm – calls may be recorded). 

    Once Legal & General have verified your Nominated Bank Account, you’ll be able to make electronic payments using your Platform Account Reference as your payment reference. Send payments to:
    Sort code: 16-04-00
    Account: 31256358

  • Money from your investments

    If you choose to sell any of your investments, the proceeds of the sale will automatically be transferred to your IPS Cash Account. This money is then ready for investing at a later date or can be transferred to your Nominated Bank Account. 

  • Income from your investments

    Any income you receive from your investments will be held in your IPS Cash Account. This money will either be retained in your IPS Cash Account or paid into your Nominated Bank Account, depending on your instruction. 

  • By cheque
    You can send Legal & General a cheque with instructions telling them to add the money to your IPS Cash Account. Please make cheques payable to ‘Legal & General’ and include your name on the payee line (for example, ‘Legal & General – J Smith’). 

Interest will be paid at 0.25% below the base rate and is calculated at the beginning of each month on the money held in your IPS Cash Account. Find out more about Legal & General’s interest rates.

The funds you're invested in

No, the change of charging structure happens on 1 April 2016 and you'll stay in the funds you are invested in on 31 March 2016. 

Any existing regular investments you have will continue at the same amount and be paid into the same funds. 

Yes. You'll be able to buy new funds from the panel of commission-free funds that are available to you. You'll also be able to top up into any commission-free funds in which you're already invested. 

If you have a complaint about any part of Legal & General's service, or you'd like them to send you a copy of their internal complaint handling procedure, please contact Legal & General by telephone or in writing. Legal & General’s contact details are on the letter.

If you have a complaint about any part of Nationwide’s service, or you’d like us to send you a copy of our internal complaint handling procedure, please contact us.

If you are not satisfied with the way we have dealt with your complaint you may refer it to the Financial Ombudsman Service.  You can also refer your complaint to them first without giving us the opportunity to resolve it, but if you do this, they will only consider your complaint with our consent.

The Financial Ombudsman Service
Exchange Tower
London E14 9SR
Tel: 0800 023 4567 / 0300 123 9123

Making a complaint will not affect your right to take legal proceedings. We’ll tell you about your rights when we answer your complaint.