How we are paid
Advice & Planning Charging Principles
We believe that as an Independent Financial Planning practice we must be unbiased. Therefore our advice costs are the same percentage regardless of the particular Investment Product, Product Provider or Tax Wrapper we recommend.
We believe our ongoing servicing charge should be the same percentage for all similar clients, and that the service these clients receive will be at least partially dictated by the complexity of their affairs.
We believe that ongoing Investment and Financial Planning charges should be appropriate to the investment service being offered. In short, we set out to treat our clients as fairly as possible – and we always have.
After the initial consultation, at our cost, we will agree with you whether you pay us a fee, or we are paid out of the cost of any financial product you buy (commission). We will always tell you about any commission we earn, and it will be taken into account in working out our fee.
Commission is paid to an IFA firm by a provider, usually an insurance company or an investment house for the successful placing of business. The commission is included within the providers normal product charges, so there is nothing you need to pay us in addition. The amount of commission is based on a percentage of the premiums payable or sums invested.
Fees will usually be based on time spent and evaluated at a rate per hour calculated to recover our costs. Fees attract an additional VAT charge whereas commissions, under current legislation, do not.
If you ask us to arrange a mortgage for you we can be paid by either commission or a fee. If you choose to pay us a fee, this will usually be 0.5% of the loan amount.
Whether we take our remuneration by way of commission or fees will be a matter of discussion and agreement, and no charges for fees will be made without prior notification in writing.