How we are paid
On receiving an enquiry, we invite a prospective client to come to our office for an hour long preliminary meeting. The purpose of the meeting is firstly to establish whether we are able to assist with the prospective client's 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.
During the initial free consultation, we offer all our clients the options of paying us purely through fees and retainers directly charged to them. Alternatively, where appropriate,they may choose to pay through the cost of any financial products that they buy (commission). In the former case, if any commission arises, we forgo the initial commission by enhancing your benefits or reducing your contribution to your chosen plans. In the latter case, we will tell you about any commission we earn and we retain that commission. You may also opt for a combination of fee and commission, and if so any commission which we receive will be taken into account in working out the balace of our fee.
Commission is paid to an advisory firm by a provider, usually an insurance company, a lender or an investment house for the successful placing of business, which includes marketing, distribution, advice and arranging as well as taking regulatory responsibility for all these processes.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 contributions payable, amounts advanced or sums invested.
Fees are usually worked out based on time necessarily spent on each task and are charged at a rate calculated to recover our costs. We also offer fixed fees (broken down to specific tasks) and retainers for any ongoing services. We agree these with you in advance of any chargeable work done.
Fees in connection with pure advice or regular servicing of your needs (as opposed to for arranging an insurance, investment, mortgage or retirement plan) may attract an additional VAT charge whereas commissions, under current legislation, do not. Commission earned on arranging retirement plans is currently subsidised by the government as the contributions out of which commission is paid attract tax relief.
If you ask us to arrange a mortgage for you, we can be paid by either a pure fee (where any commission received will be paid over to you) or a combination of a fixed administration fee of £250 at the point of filing the application and commission from the lender. If you choose to pay us a pure fee, this will usually be 1% of the loan amount, half of which will be paid at the point of filing the application.
Whether we take our remuneration by way of fee, commission or a combination of the two will be a matter of discussion and agreement, and no fee will be charged without prior notification in writing. In all circumstances, you will receive unbiased and impartial advice for which you have paid one way or another. After all, nothing worthwhile comes by at no cost!
