How we are paid
We will agree with you whether you pay us a fee, or we are paid out of the cost of any financial product you buy (commission) , or customer agreed remuneration (CAR) We will always tell you about any commission we earn, and it will be taken into account in working out our fee. Commission will not usually be paid on pension and investment products.
Commission is paid to an IFA firm by a provider, usually an insurance company for the successful placing of business. The commission is included within the providers normal product charges, so there is usually nothing you need to pay us in addition. The amount of commission is based on a percentage of the premiums payable
As far as investment products are concerned, if the provider faciltates it a payment can be deducted at source from your funds and be paid to us - with your permission (CAR). Or we may charge you a direct fee for the same work
Fees will usually be based on time spent and evaluated at a rate per hour or project costs, or as a percentage ofthe investment with a (usually) smaller annual charge. Fees may attract an additional VAT charge whereas commissions, under current legislation, do not.
Whether we take our remuneration 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 in writing.