All charges that an investor incurs and will incur over the relevant period are to be included in the EAC measure for that Financial Product. Where a charge is not available, a reasonable best-estimate is used and explained in the free text notes.
The EAC comprises four separate components into which various charges are allocated. The components are:
• investment management charges (IMC);
• advice charges;
• administration charges; and
• other charges.
The EAC is calculated separately for each of the four components in isolation and then summed to derive the EAC for the Financial Product as a whole.