We’re enhancing how Tiered Adviser Charging (TAC) works to allow all of a client's products to be included when setting charges.
What's changing?
Until now, third-party products – particularly onshore and offshore bonds – couldn’t be included in TAC client groups. This meant their value wasn’t considered when calculating tiered adviser charge rates, even if they formed a significant part of a client’s overall wealth.
That’s now changing.
- All third-party products on the Parmenion platform, including onshore and offshore bonds, can be included in TAC
- Client records holding third-party products can be grouped with other client accounts
- The value of these products will then be included when determining the TAC rate
This builds on a previous update that enabled TAC for third-party pensions.
There is one important exception that remains unchanged:
While bonds can now be included for tiering purposes, we are still not permitted to facilitate adviser charges on them. These must continue to be handled by the bond provider.
When is this happening?
Tiered adviser charging for third party bonds is expected to go live on 7th May 2026 on an opt-in basis.
What's the customer impact?
This change allows a client’s full asset picture to be reflected when calculating adviser charges, which can lead to a lower effective rate on portfolios we manage.
For example, where a client holds significant value in a bond, that value can now push them into a charging tier with a lower rate. While we won’t apply charges to the bond itself, the improved tiering can reduce the charges applied to their other investments, such as ISAs, GIAs and SIPPs.
What advisers need to do
This change won’t be applied automatically to existing clients. To benefit:
- Apply TAC to the third-party product using the Change to TAC tool
- Create or update a Client Group via the Charges screen
What hasn’t changed
- Adviser charges on bonds are still facilitated by the bond provider, not by us
- Charges we don’t facilitate won’t appear in disclosure documents like the IMR
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
