How we are paid
On receiving an enquiry we invite a prospective client to come to our offices for a preliminary meeting. For those clients not within travelling distance of Edinburgh we do offer an alternative service whereby we ask you to complete a detailed Questionnaire and return this to us in the post.
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 whether you pay us a fee, or we are paid out of the cost of any financial product you buy (commission). We will always tell you about any commission we earn, and it will be taken into account in working out our fee.
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 providers normal product charges, so there is nothing you need to pay us in addition. The amount of commission is usually based on a percentage of the premiums payable or sums invested.
Fees will usually be based on time spent and evaluated at a rate per hour calculated to recover our costs. Fees may attract an additional VAT charge whereas commissions and commission offsetting, under current legislation, do not.
Whether we take our remuneration by way of commission or fees will be a matter of discussion and agreement. 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 fees or commission. If you choose to pay us a fee, the precise amount will depend upon your circumstances but we estimate that it will be £500 or 0.5% of the loan amount.
We have never been accused of over-charging. We aim to offer great value for money. More often than not can arrange investments,pensions and mortgages for clients at a lower rate than if you had approached an insurer, investment house or lender directly. Put us to the test!