What is an annual costs and charges statement?
An annual costs and charges statement, also called an ex-post statement, shows what you actually paid over the past year for adviser, platform and fund costs, in pounds and as a percentage of your investments.
Firms providing an ongoing service must send it "on a personalised and annual basis", with an illustration of the cumulative effect of costs on your return (FCA Handbook, COBS 6.1ZA).
Before and after
There are two costs disclosures. The ex-ante disclosure is the estimate you receive before a service starts. The ex-post statement comes afterwards and reports what was actually incurred. Comparing the two is a simple check that you paid what you were told you would.
What it should show
- the adviser's charges, initial and ongoing, that you paid in the period;
- the platform's charges;
- the costs of the funds or portfolios you hold, including transaction costs;
- the total, as a cash amount and a percentage;
- how those costs affected your return.
You can ask for an itemised breakdown, which the rules entitle you to request.
Using it
It is the one document that shows the whole cost in pounds. Set it beside what the service did for you in the year, and use it when comparing a quote from another firm. If you have not received one and you pay for an ongoing service, ask the firm or the platform for it.
Related definitions
Sources
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