The provider or manager of a stakeholder scheme will normally
levy charges to cover their costs and provide a profit. These
charges were limited to being no more than 1% of the value of your
fund each year. However, with effect from 6 April 2005 the annual
management charge was increased to 1.5% for plans set up from this
date. The charge will be 1.5% for the first ten years and 1%
thereafter.
If a provider is making available additional services, such as
personal financial advice, then an extra charge can be made.
However, this must be agreed with you in advance and you are still
able to join that scheme without having to take the additional
services.
