Question:
The brokerage fee that Old Mutual charges when I withdraw my pension (R12 000), is it regulated or does it differ from company to company?
Answer:
George
Without more detailed information it is not possible to answer your question. It is not clear what you mean by "withdraw your pension". Are you withdrawing entirely from your pension fund, or are you receiving a monthly annuity, guaranteed by Old Mutual? Neither is tantamount to drawing a pension. In SA, only members of defined benefit funds effectively still draw a monthly pension. Either way, you should not expect to see a brokerage fee deduction on your statement.
Brokerage fees (trading costs) are incurred on the sale of underlying securities. Trading costs are normally incurred at a fund/portfolio level, and the fund performance/return is stated net of brokerage fees. Funds may disclose the total amount of brokerage paid, but this should not appear as a deduction on your statement as this would then amount to double-counting.
