If you joined rplan before March 10th, 2014, you may hold some funds in the older "implicit" share class (see the difference between explicit and implicit share classes). Those holdings fall under a different pricing structure than any funds invested after March 10th 2014.

Most "implicit" share class funds (bought before March 10th, 2014) carry two charges - an initial charge, when you first buy into a fund, and an ongoing charge.

rplan has negotiated to remove the initial charge completely on nearly all funds, and rebates at least 50% of the ongoing commission it receives back to you. This means that:

  • You don't pay any initial charges at all when investing in nearly all funds on rplan. The charge is waived completely.
  • You receive at least 50% of any ongoing commission we receive from the fund manager straight back to your bank account. The commission is paid by the fund manager to us, and we refund at least 50% of that back to you via a BACS transfer.

The reason we say 'at least 50%' is that we also cap the amount of commission we receive at £5 per month. This means that regardless of the amount of money you have invested, you will never pay more than £5 a month to us; we refund 100% of the rest back to your bank account.

Show Examples

For a £10,000 investment over 1 year:

Investment Amount £10,000
Normal Initial charge
(typically 5.5%)
£550
rplan Initial charge
(0%)
£0
Ongoing charge
(typically 1.5%, of which 0.5% is commission)
£150
rplan refund
(50% of the ongoing commission)
£25
Total Saved £575

For an £80,000 investment over 1 year:

Investment Amount £80,000
Normal Initial charge
(typically 5.5%)
£4,400
rplan Initial charge
(0%)
£0
Ongoing charge
(typically 1.5%, of which 0.5% is commission)
£1,200
rplan refund
(50% of the ongoing commission)
£200
extra rplan refund
(anything above £5 per month commission)
£140
Total Saved £4,620

Because the £5 per month cap is reached, rplan refunds any commission it receives above £5 per month (an additional £20 per year), so 55% of the ongoing commission is actually being refunded.

Receiving Ongoing Commission Rebates

rplan pays any commission rebate due directly back to you directly via BACS. To do so, we need details of your bank account in order to pay your commission rebates. You can enter your bank details in the My Bank Account section of the site.

Investments made after March 10th, 2014

Our charging structure on all new investments from March 10th, 2014 has changed. You can find more information on how these changes will affect you here. Alternatively, you can browse through our Frequently Asked Questions below.

FAQ

How will the charging work if I hold both the older 'implicit' and the new 'explicit' share classes?

The new pricing structure only applies to investments made after March 10th, 2014; existing holdings will continue under the previous charging structure outlined above. You can find out more about how you will be charged on investments after March 10th 2014 here. We won’t double-charge you for any investments you hold in the older 'implicit' share classes.

What will happen to my existing investments?

Your existing holdings will stay as is, unless you ask us to move them to the new pricing model. To do so, simply send us an email at support@rplan.co.uk.

For any of your holdings in the old pricing model, nothing will change in terms of charging - you will still continue to receive a 50% ongoing commission rebates (with rplan charges capped at £5/month.)

Any new investment made after we move to the new pricing model in March (including top-ups of funds you already hold) will go into the ‘explicit’ share classes, and will fall under the new pricing model. They will effectively be charged separately to the funds you hold on the old structure.

The exception to this is regular savers - any regular saver that you set up before March 10th, 2014 will continue as is, until it is changed - at which point it will move to the 'explicit' share class funds. Find out more here.

What will happen to my commission rebates?

You will continue to receive commission rebates on the funds you hold in the 'implicit' share class as per currently (where rplan's charge is 50% of any trail commission we receive, capped at £5/month). The method with which any commission rebates will be paid is pending regulatory and compliance review, as the FCA have made some changes to how commission rebates can be paid. You should however be paying no more for any 'implicit' share class funds than you do currently.

Will I be better off on the new charging structure?

On average, most of our clients would pay less under the new pricing structure, with an average saving of around £11 per year. However, some members will end up paying more - particularly those investing mostly in tracker funds.

We will send out an email later this year to all members with holdings under the old pricing structure, detailing whether they would be better off moving their existing holdings to the new pricing structure. In the meantime, you can download a list of all funds available on rplan with their explicit share class equivalent.

Can I convert my current holdings to the new pricing structure?

Yes - to do this, you will need to convert your existing holdings in 'implicit' share classes to the newer 'explicit' share classes. Please contact us at support@rplan.co.uk if you would like to do this.

Why is there no clean share equivalent for one of my holdings?

For most funds where an 'implicit' share class exists, the fund manager will have created an equivalent 'explicit' share class. However, not all 'implicit' share class funds have 'explicit' share class equivalents. The fund manager may create one in the future, or may decide to convert the 'implicit' share class to an 'explicit' share class on April 5th 2014, when the RDR takes effect. In some cases though, the fund manager may not create an 'explicit' equivalent, and will therefore not be accepting any new investments after April 5th 2014.

In that case, you will not be able to convert any existing 'implicit' share classes you hold to an 'explicit' equivalent. You can however switch to a different 'explicit' share class fund.

What will happen to my regular saver?

For funds in the older 'implicit' share classes, nothing will change and regular contributions will continue as usual unless you try to make increases to the mandate. You can find out more information on this here.