How we are paid
We operate on a fee basis for all our work, as we find that this ensures we are focussed on delivering what you are likely to value most. Quality superior technical advice considering you as an individual and ensuring you can feel confident and can trust in our focus on service.
The alternative to fees is commission and the issue that clients typically have with commission is that it promotes a need in an advisers mind to have to sell something to earn anything, when maybe the timing was not as appropriate as it might be. Being paid a fee for giving advice and delivering a service is deemed to be far fairer and less open to abuse than for making a sale.
We also operate a fixed price approach. Why fixed prices and not hourly rates?
• If we charge time, all the risk is the clients – if the work takes us a long-time, they pick up the tab. We should have the experience to price the work correctly.
• It is not fair on either party for work to be taken on without knowing what the price would be. Most clients are nervous of giving people an open ended cheque book!
• Billing for time focuses us on effort and not necessarily on results.
• Reward based on time encourages inefficiency and ultimately the firm will not be competitive.
• As time can’t be charged, we are constantly looking to demonstrate the value we add by way of our expertise through spotting opportunities to save tax, improve cost savings, enhance potential investment returns and deliver high levels of service. Typically, these are the only things that clients are willing to pay for.
• Fixed price agreements encourage us to search out efficiency savings in our work processes. This makes us more competitive and allows us to attract new business, maintain service and grow.
• Equally there are times through our experience where we save a client or make a client a significant sum of money. Whilst it may take us minutes to spot that opportunity it is as a result of years of investing time in ourselves and systems that have enabled us to achieve that. It is therefore unfair on us to have to charge a proportion of one hour for that experience.
As a result of our work, sometimes there is no need to put anything new, in terms of products in place. We may need to re-shape a portfolio, put things into Trust etc. At other times it is appropriate to put in place new plans to enhance someone’s financial plan. Where new plans / policies are put into place the Provider of that policy usually makes a commission payable to a firm such as ourselves.
Where this arises, our clients can elect to have any commission generated offset against any fee that is still outstanding at the time, thus reducing the payment they make directly from their bank account. Alternatively they can reinvest the commission into the plan and pay the full fee by cheque / direct debit.
Should we then work with a client on an ongoing basis providing some form of annual service then a similar approach can be adopted, but we usually receive payment from our clients by way of monthly, quarterly or annual direct debit. We will discuss that further should you wish to work with us on an annual basis.
No charges for fees will be made without prior notification in writing.
If you ask us to arrange a mortgage for you we can be paid by either commission or a fee. If you choose to pay us a fee, this will usually be £350.
