Why we’re changing our commission rate
From March 2023, the commission rate charged to members on distribution payments will increase from 9.5% to 10%.
ALCS charges a commission on the payments we make to members. We use this money to run the company and we strive to keep the rate as low as possible. Currently, we apply a rate of 9.5% to all payments and we’ve managed to keep the commission under 10% for over 15 years, but a decision has now been made to increase this rate from 9.5% to 10%.
Why has this decision been made?
Like all businesses, we are facing rising costs due to the difficult economic climate. We must increase our commission rate to enable us to continue to operate effectively and to ensure you receive as much money as possible in our distributions.
At the last ALCS annual general meeting in November 2022, permission was given by the voting membership to increase the commission rate up to 11%. Following this, our Board of Directors have agreed to increase the rate to 10%.
What does this mean for you?
As a member, this new commission rate will be applied to your future payments.
Examples of this would be that a payment of £200 will now result in a commission charge of £20 rather than £19. Or a payment of £5000 will now result in a commission charge of £500 rather than £475.
The new rate will take effect ahead of the next payment distribution in March 2023.
Do ALCS plan to raise the commission rate further in future?
We currently have no plans for further changes to the rate of commission. Any commission rate changes are routinely scrutinised by the ALCS Finance and Audit Committee to ensure they are necessary and require approval by the Board of Directors. Any increases beyond 11% would again require approval from members at future general meetings.
