Fee and Service Agreement
This agreement is supplementary to our Private Client Agreement and sets out the basis on which we charge for our services. In order to clarify the expectations of all parties and to provide transparency of charges we set out in this document the services available and associated costs. Please feel free to contact us if you wish to discuss any aspects of these terms.
Section 1 – Our Service
We only offer advice or recommendations after we have listened carefully to your needs, considered your financial goals and fully understood your attitude to investment risk.
Financial Planning Service
Our Financial Planning Service is designed for clients who value an in-depth analysis of their financial affairs. With the Financial Planning service, you will:
- Have an initial ‘discovery meeting’ to establish your situation, your views and preferences and to uncover your needs, aspirations and values and to answer any questions. The cost of this initial meeting is met by us.
- Following our detailed fact-finding process determining your current situation and risk profile, you will receive a detailed financial plan demonstrating your current financial position and a variety of scenarios including stopping work voluntarily or death/disability if applicable.
- Receive a document detailing our proposed implantation strategy to help you achieve your future financial goals and to limit any impact of issues discovered, such as premature death. Forbes Lawson will implement this plan on your agreement, which may include selecting appropriate investment funds or provision of protection policies.
- Have an annual meeting with your dedicated Financial Planner to discuss your financial plan and portfolio. This will include looking at the asset allocation and the continued suitability of your investments against your attitude to risk and the performance of your individual investments.
- Have unlimited access to the Forbes Lawson team to discuss any changes during the year.
- Receive recommendations regarding any investment fund switches to your existing portfolio if your plan has changed.
- Be made aware of any legislative and tax changes that may affect your portfolio.
- Be advised if we become aware of an investment product, issue or service that we believe may be relevant and of interest to you.
Section 2 – Initial Fees & Charges
Objective Setting, Analysis and Presentation
Our charge for this service is a fixed fee of £2,500 + VAT payable on provision of the report containing our recommendations.
Single premium investment or transfer
Fees operate on an incremental tiered scale.
|Portfolio Amount||Fee as a percentage|
|Up to £500,000||1%|
|£500,001 and above||By individual negotiation subject to a minimum of £5,000|
For example, an investment of £100,000 would be charged an initial fee of £1,000
For Financial Planning clients we do not charge a fee for setting up a regular premium plan such as an ISA or Pension.
We will arrange protection solutions on your behalf, as a rule we will be paid commission from the solution provider and, in these instances, no fee will be chargeable. The amount will be disclosed to you at recommendation stage.
Projects and other work
In some circumstances, our work for you can only be charged on a ‘time worked’ basis. Detailed below in Section 4 is a list of our charge out rates.
Section 3 – Ongoing Fees & Charges
|Financial Planning Service||Our Ongoing Financial Planning service is charged at £50pcm + VAT. This amount is payable either through a product or by standing order mandate directly from your bank.|
Our fee for ongoing monitoring of your investments (if applicable) is charged at 0.55% of the portfolio value. For example, if your portfolio value is £100,000 the fee per annum would be £550.00 (received directly from the investment provider).
Section 4 – Charge Out Rates
Should you engage us to perform a piece of work where the only way we can fee you would be in accordance with the time spent on the task, then the hourly charge out rates we will use will be detailed as below.
|ISO 22222 Accredited Financial Planner:||£250 per hour|
|Client Support:||£70 per hour|
For example, if a piece of work takes 2 hours of a Financial Planner’s time (charged at £250 per hour) and 2 hours of Client Support time (charged at £70 per hour), the total fee will come to £640 before VAT.
We can also accommodate projects and work on a pre-agreed, fixed fee basis. In these cases, we will quote an amount to you to perform the work, and it should become evident that the cost will exceed our quote, we will agree with you such charges before continuing the work.
The fee will depend on the complexity and extent of the work involved and we will provide you with a quote.
Section 5 – Paying Fees
Fees can either be paid by you the client or, where possible, taken from your investment or retirement solution.