The first hour is always free of charge unless we have specifically stated otherwise and there is no obligation on either side to proceed further.
The purpose of this first meeting is explained more fully in the How we work section.
After the initial consultation, we will agree with you how you will pay for our services, whether you pay a fee, or whether our costs are to be met out of the cost of any financial product you buy (commission). You will always receive written confirmation told about any commission earned.
Commission is paid to an IFA firm by an insurance or investment company for the successful placing of business. The commission is usually included within the provider’s normal product charges, so there is nothing you need to pay in addition. The amount of commission is based on a percentage of the premiums payable or sums invested.
For example for non-pension investment business, in order to ensure there is no product or company bias we will only accept a flat rate charge (3% if you have less than £100,000 invested with us or 1.5% if above), even if the company offers to pay us considerably more than this. All investments also carry a 0.5% pa renewal commission but again this is usually provided for within the provider’s normal product charges.
Other commission rates are shown in the
The Cost of Our Services Document but, as mentioned above, the amount of commission we expect to receive will always be disclosed to so that you are in possession of all the facts before proceeding.
Fees may be charged as an alternative to commission and this may be a pre-agreed fixed amount or by hourly rate. Again details of our fees are shown in the
The Cost of Our Services Document.
A fee agreement will be provided that will stipulate what work is to be carried out and what our remuneration will be for the work undertaken. Work on your behalf will not commence until you have signed the fee agreement. In this way each party knows what is expected.
Fees can attract an additional VAT charge whereas commissions, under current legislation, do not. You will always be told if VAT has to be charged.
Whether you pay 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 to you in writing.