How we are paid
On receiving
your enquiry you are invited to a preliminary meeting. The purpose of the
meeting is firstly to establish your needs and objectives and whether you
require assistance or not and secondly to discuss with you the method of payment
for the services provided for you should you decide to proceed. There is no charge to you for the first
half hour of this preliminary meeting and no obligation on either side.
After the initial free consultation, we will agree with you whether you pay a fee, or payment for the services provided to you are paid out of the cost of any financial product you buy (commission). You will always be told about any commission earnt.
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 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.
Fees will be based on the value of the servcies offered to you. This maybe by a set amount to complete a financial review, carry out research on your behalf, an evaluation report or subsequent meetings to explain recommendations made to you. A fee agreement will be provided that will stipulate what work is to be carried out and what remuneration will be due. 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.