We have a varied fee structure and different advisers will charge in different ways but the most common method is some variation of the following:
We will charge an initial fee which will cover all the time and work that goes into the research and implementation process with a new client. It will also help to cover the overheads such as insurance premiums and compliance. If the client wants ongoing advice, we also charge an ongoing fee. Often, these fees come from within the investment so the client might not have to pay any fees from their existing savings. There is always the option to pay directly though and a good adviser will continue to make these fees clear to the client so they know exactly what they are paying and what they are paying for.
Sometimes clients are concerned that these fees could adversely affect the potential growth of their investment but a good adviser should always add value. If we can’t get your money working harder than you can, why would you pay us!
For mortgages, the adviser will charge for the advice and completing the application process on behalf of the client. This is paid by the client directly and advisers also receive a fee from the mortgage provider for placing the business with them.
Protection providers pay a commission payment to the adviser as a type of referral fee for placing the business and therefore a lot of advisers won’t charge clients for protection advice if it leads to a new policy.
The financial advice sector is very heavily regulated and as a consequence, there are large overheads such as FCA levies, large insurance premiums and many expensive software licenses. At the heart of it all though is trust. If you can find an adviser that you trust, then you can release a huge burden, knowing that your investment/pension/mortgage is in the hands of someone you trust. Building long lasting relationships is key to that trust.