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How We Are Paid
Financial Advice can, and does, come in many forms. It is widely held that Independent Financial Advice is the true “gold standard” of advice and as a company, we are totally committed to that ideal.
Clearly, Financial Advisers are in business to make a profit! Our view is that our profit is a natural follow-on from quality advice and long-term client care - get that right and everything else falls into place!
We invite a prospective client to come to our offices for a preliminary meeting, or arrange a home appointment, if necessary. The purpose of the meeting is firstly to establish whether we are able to assist with the prospective clients' needs and objectives and secondly to discuss how we would be paid for our services should we be instructed to proceed. There is no charge for this preliminary meeting and no obligation on either side.
By its very nature, quality Independent Financial Advice can be perceived to be an expensive proposition and certainly is not for everyone. We offer a bespoke service to our clients with our proposition based upon professional values. We are an organisation fully mindful of all of our regulatory obligations and the costs associated therewith.
- So, how do we earn our income?
It is generated through a number of differing options, each designed to offer our clients the choice that best suits their personal preferences.
- If the commission option is selected then no additional fee payment from you is due. Please do ensure that you understand the implications of cancelling a life assurance or other contract in the early years. In these circumstances it may be the case that the product provider will seek to recover the commission (or part thereof) paid initially to this firm and you will appreciate therefore that we reserve our right to charge you a fee to compensate us for the time spent in advising you and arranging the administration of policy issue. This point is also detailed within our Terms of Business Letter.
- Our fees are transparent. Our fee agreement can be structured on either a time costed basis as detailed in our "Professional Remuneration Agreement” or alternatively by way of an agreed project flat fee, a fee based on a percentage of funds invested or a fee based upon performance achieved.
- Please note that any work undertaken in excess of that provided by the core monthly retainer will only be charged following the prior agreement of the client. A core monthly retainer does away with the method by which some other professions operate, ie, by charging for every call, letter, stamp, photocopy or minute spent talking to you.
- Our monthly retainer system has always proved exceedingly popular by choice for both parties, as it means that you have unfettered access to advice. Equally, we have the certainty that we are able to effectively fund the above support cost. Additionally, it also allows us the opportunity to conduct research prior to our regular scheduled review meetings at no extra cost to you.
Our income is typically derived from:
· A core monthly retainer plus;
· Commission paid by the selected product provider, or
· A combination of fee and commission, or
· A Fee payable by you with all initial and trail commission rebated or reinvested within the product. The rebate option may not always be available with certain Pension products in accordance with Inland Revenue guidelines.
Mortgage Advice
- Our fee arrangement for mortgage advice is structured differently.
We generally charge no fee as we receive a procuration fee from the selected lender, which is clearly disclosed at the outset.
- Because we are independent we give the client the option to pay a fee, a typical example of a fee for a mortgage is 0.50% of the loan amount, ie, a loan of £100,000 would be £500.
- For specialist mortgages we charge 0.50% of the loan amount, ie, a lone of £100,000 would be £500. This is payable upon completion via the acting solicitor by way of a signed Fee Agreement.
- The only additional charge that we make is our Processing Fee of £175, payable when you instruct us to proceed with the recommended mortgage. This is non-refundable and is charged purely to cover our administrative costs - not for the advice or recommendation.
In Conclusion
If any aspect of the foregoing is not clear, we would be happy to discuss this thoroughly with you and a copy of our standard Fee Agreement is available for your inspection, upon request.
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