FEES & CHARGES
The FSA have recently announced that from January 2013 Financial Advisors can only be renumerated by charging their clients fees, as opposed to being able to earn commission. Following overwhelming client opinion, until the deadline in 2013 we have decided to remain commission based for the following reasons:
- Clients don't have to worry about charges spiralling out of control, or going beyond budget.
- We won't charge you a retainer or monthly fee as is becoming commonplace just for simply reviewing your plans regularly. We believe it is the duty of any financial advisor to conduct investment/plan reviews periodically throughout the life of an investment, not just at the start.
- Clients are comfortable in the knowledge that they are not being charged for our time, and so feel free to take their time with us and understand properly the advice we are giving. In addition during the life of the investment, we are on hand to provide on going guidance, long after any plans have been put in place. The cost of our service is fully covered by product charges.
- Although some may argue that commissions influence product bias, at this high level of financial advice, and especially given that the advice we give is usually in conjunction with clients' other professional advisors, clients can rest assured they are receiving best advice based on what is most appropriate for them. Furthermore, our discerning clients demand solutions and products which meet their objectives, and it is therefore very difficult to 'mis-sell' or have unwarranted bias in these circumstances.
- Being commission based means we can negotiate with providers on the best charging structure for our client. For example one provider offers no establishment fee on investments, thus keeping set up costs to a minimum. This would not be possible if we were fee based, as we would then have no alternative but to charge the client.
- In the context of an investment, product charges (which pay for commissions) are usually 'relatively' small, and can be made up quickly with investment growth, particularly in a good investment period.
- Running our business on a commission only basis means we are able to operate profitably, which in turn allows us to do what we do best... advising you - we have no need for a 'hard sell' approach.