Hi everyone This may seem like a silly question, but what exactly are the differences between charges and expenses, and when would you use which in answering a question? I did Question 9.2.ii of the Q&A bank and stated that the expenses could have been higher than expected. Memo says "net invested contributions being less than expected due to higher charges" Thanks in advance
Charges are levied by the provider (an income) - while expenses are incurred by the provider. There is a section in chapter 10 contract design.