How we are paid
On receiving an enquiry, we invite a prospective client to come to our offices for a preliminary meeting. The purpose of the meeting is firstly to establish whether we are able to assist with the prospective clients 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.
After the initial free consultation, we will agree with you what services we will provide and whether we will be remunerated by a fee from you or by commission paid out of the cost of any financial product which we arrange. Alternatively, we may arrange to be paid by a combination of fees and commission. We will always tell you about any commission we earn and, where agreed, it will be taken into account when working out our fee.
Commission is paid to an IFA firm by a provider, for example 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 and the term of the contract.
You have the option to pay in full by fee. If you choose this option we will agree our fee with you before we commence any chargeable work. Any commission we would normally earn from a product we recommend to you will be used to enhance the terms of the policy (usually by reducing the charges) or rebated to you.
With regard to mortgages, there may be a fee payable for mortgage advice. The precise amount of the fee will depend upon your circumstances and the amount of work involved, but will typically be equivalent to 0.5% of the mortgage amount. This means that for arranging a £100,000 mortgage we would typically charge £500.
Whether we take our remuneration by way of commission or fees or a combination of the two, will be a matter of discussion and agreement and no charges for fees will be made without prior notification in writing.
Your home may be repossessed if you do not keep up repayments on your mortgage.