Compliance charge

[bricro]

Have tried hard to find out what a compliance charge is for when buying shares
but no luck .Help!

[factor-fiction]

This charge seems to be applied for most purchases and the cost is typically £2.50 to £7.50 per transaction. I assume it is to cove rteh compliance checks that need to be done to ensure compliance with maybe government and other regulations concerning money laundering, tax, etc

[bricro]

Thank You Factor 30

[New Judge]

Yes, it's rather like a pub making a "compliance charge" when selling you a drink to cover the cost of obtaining its licence and training its staff to ensure they abide by its conditions.

[factor-fiction]

^ .... although a pub has a pretty big mark-up on a pint of beer and can hide the 'compliance costs' in there, whereas there is a much smaller mark-up in share transactions. There is nothing to stop a pub though giving you a breakdown of the price of a pint but I don't think it will happen
It's a bit like insurance companies showing the insurance premium tax separately- that's understandable.