How we are paid
Following an enquiry we like to meet a prospective client for a 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 our method of remuneration should we be instructed to proceed. There is no charge for this preliminary meeting and no obligation on either side.
After the initial free consultation, we will agree with you whether you pay us a fee, or if 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 a fee.
Commission is paid to an IFA firm by a product provider, usually an insurance company or an investment house for the successful placing of business. The commission is included within the provider’s normal product charges, so there is nothing you need to pay us in addition.
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. We will always tell you about any commission we earn, and it will be taken into account in working out our fee.
If you ask us to arrange a mortgage for you, we can be paid by commission or a fee. If you choose to pay us a fee this will normally be 1% of the loan amount, subject to a minimum of £500.
Whether we take our remuneration by way of commission, fees or a combination will be a matter of discussion and agreement, and no charges for fees will be made without prior agreement and notification in writing.