How We Are Paid
Our initial free, no obligation conversation and meeting is where you can get to know us and importantly you can make an informed decision as to whether you would like us to work with you going forward.
Once we have explored the areas where you might benefit from financial advice and we have a better understanding of what you are hoping to achieve, the complexity of your situation and how much of our time will be required; we will explain our fees to you in full and confirm all charges in writing before you decide to use our service, we are committed to providing you with clear and transparent pricing structure.
Since 31st December 2012, it has been a regulatory requirement that the cost of all investment and pension advice be based on a fee rather than commission.
Our Charges explained
Typically we charge an initial fee and then an ongoing fee to service and manage your affairs.
Initial Fee – Percentage Based
The initial fee (subject to a minimum) for advising and implementing any financial plan is usually based on a percentage of the amount invested. A maximum of 2% (capped at £10,000) for the most complex portfolios however this is more typically around 1% which is the market average.
Initial and One-off Fees – Hourly Based
An hourly rate (of £150 per hour) is normally suitable for those clients seeking a recommendation only and are not necessarily looking for us to implement the actual investment work for them.
Sometimes clients just need a sense check that their thoughts and financial plans make sense and they have not missed any key areas that could have a detrimental effect.
You may have your own investment account or self-invested Personal Pension (SIPP) with a provider you are happy with but want advice outside this (for example confirmation that the right processes are being followed). Or this may be the first time you are drawing from your pension and you need clarification between the different pension drawdown options, (UFPLS or Flexi-Access), or you may just want to compare income against an annuity.
Before work is undertaken under the hourly rate, the scope of services you require from us will be discussed and agreed. You may decide you just want a report on your pension options, or a review of your investments. You may want help completing application forms or advice on how to give money or assets away.
We offer a non-compulsory on-going service to help those clients who want to stay informed about changes to their investment options, taxation or general finances. The majority of our clients recognise that their circumstances will not remain stagnant and their financial plans will need to grow and change over the years. Our on- going service ensures that we are continuously monitoring and reviewing your portfolio to ensure it remains relevant to your personal circumstances.
The service includes but is not limited to an annual face to face meeting, in-person or via conference link where we review your portfolio and circumstances, making adjustments when necessary to ensure your financial plan has the best chance of performing how you want it to. You will be able to monitor your investments online or will have direct access to your adviser and their support team at any time if you have any questions or your circumstances change between annual reviews.
Typically our on-going charge is 1% of the value of the funds under management and is usually paid monthly via the fund provider. We truly believe you will value this on-going service but if this doesn’t work out for you, you can opt out of this service at any point with no exit fees.
(For Protection, Equity Release/Lifetime Mortgages and Insurance products only)
Certain products still pay commission – which is paid to us by the provider.
We will always tell you about any commission we earn, and how the cost of this commission has been factored into the price of your product.
Commission varies between different products and providers but will be documented on the key facts illustration (KFI) you receive from the adviser.
Whether remuneration is taken by way of commission or a direct fee is always a matter of discussion and agreement, no charges for fees are made without prior notification in writing.
To download a full detailed breakdown of our services please click here.
For more information regarding typical adviser charges see the unbiased site here.