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Old 22.07.2015, 16:16
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New charges for all 3a fund accounts?

My bank has informed me that all incoming transactions I make in my pillar 3a funds account will now occur a 1% fee. Before it was free (of course the fund itself still had a TER, normally about 0.5%).

So therefore if I invest the 6.7k allowed per year, I will now have the TER fee + 1% deducted from any % growth / loss of the fund.

The interesting thing is that my bank has said that this new 1% rule is a FINMA regulation, applied to all funds from all banks.

Does anyone else know about this, or is my bank talking rubbish??
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Old 22.07.2015, 17:19
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Re: New charges for all 3a fund accounts?

People still get scammed by those fraudster banksters? Get out of there man and lock it in a index tracker, wth are you paying them all that money for?
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Old 22.07.2015, 17:28
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Re: New charges for all 3a fund accounts?

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People still get scammed by those fraudster banksters? Get out of there man and lock it in a index tracker, wth are you paying them all that money for?
Keep talking, I am listening
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Old 22.07.2015, 18:14
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Re: New charges for all 3a fund accounts?

Could you share which bank this is? I have not received any such info and have 3rd pillar with PostFinance (part in cash, part in funds)
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Old 22.07.2015, 18:41
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Re: New charges for all 3a fund accounts?

That FINMA remark seems highly unlikely, unless you were handed some official-looking info it was most probably a blatant lie. Which would translate to: move your assets somewhere else day before yesterday.

So I second the request, which bank please?
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Old 23.07.2015, 01:04
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Re: New charges for all 3a fund accounts?

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People still get scammed by those fraudster banksters? Get out of there man and lock it in a index tracker, wth are you paying them all that money for?
I have to amortise my interest-only mortgage via 3a, so I'd rather pay into one than pay down my mortgage right now. And I'd rather a securities based investment than cash due to my age and risk profile.

Actually I realised I didn't phrase my 1st post ideally: it's not 1% of the entire fund they take, but 1% of my new transactions. Eg pay in 6.7k to a 100k pot, the charge is 67chf. Plus then of course the TER on the 100k.
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Old 23.07.2015, 01:06
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Re: New charges for all 3a fund accounts?

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Could you share which bank this is? I have not received any such info and have 3rd pillar with PostFinance (part in cash, part in funds)
It's not Post finance or any major one
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Old 23.07.2015, 01:26
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Re: New charges for all 3a fund accounts?

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That FINMA remark seems highly unlikely, unless you were handed some official-looking info it was most probably a blatant lie. Which would translate to: move your assets somewhere else day before yesterday.

So I second the request, which bank please?
It's actually so small (less than 100 employees!) that for several reasons I won't share who it is right now. I may revise that if it turns out they try and blag their customers using fancy words like FINMA regulations apply.

Will be asking them exactly what regulation changes they mean, and why no other banks seem to be doing anything, and will report back
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Old 06.10.2015, 18:12
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Re: New charges for all 3a fund accounts?

Update: The bank has now said that the new pillar 3a charges are a bank decision and nothing to do with new FINMA regulations.

After I reported it, they are taking the case seriously, so I will refrain from naming the bank, as it would seem to be a rogue employee rather than a bank-wide conspiracy.

But ladies and gents, do your due diligence when you are told things by financial services staff
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Old 06.10.2015, 18:20
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Re: New charges for all 3a fund accounts?

I would have suggested moving it elsewhere, as this is the first time I heard of this.

Also, generally it is better to have more than one 3a account, depending how much you have built up, since any account you dissolve when reaching retirement or near retirement age, has to be taken in full and therefore taxed in full for that year. Sometimes it is advantageous to take funds in a staggered fashion over two to three years. Depending where you live, you could make substantial tax savings.
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Old 06.10.2015, 18:31
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Re: New charges for all 3a fund accounts?

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I would have suggested moving it elsewhere, as this is the first time I heard of this.

Also, generally it is better to have more than one 3a account, depending how much you have built up, since any account you dissolve when reaching retirement or near retirement age, has to be taken in full and therefore taxed in full for that year. Sometimes it is advantageous to take funds in a staggered fashion over two to three years. Depending where you live, you could make substantial tax savings.
$

It's actually not entirely straightforward to just quit, since it's tied to my mortgage with the bank. However at the same time as introducing a dealing charge for new transactions, they're also offering funds with a massively reduced TER, so over time it will actually make them cheaper to own. However, it always seems expensive compared to the ETFs I have with a broker who with no custody fees and TERs of 0.09 – 0.3%.

Good point on the multiple 3a accounts thanks…….still at least a cpl of decades off retirement so won't worry about it too much for a while
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