Our Fee Structure
Fees and Services
We offer an initial discussion (without charge) when we will describe our services more fully and explain the payment options. If you decide to go ahead we will:
- Gather and analyse personal information about you, your finances, your needs and objectives.
- Recommend and discuss any action we think you should take and, with your agreement, arrange relevant investments for you.
- We offer bespoke solutions to meet your financial needs; we pride ourselves on our high quality level of service and at your choice are happy to be remunerated by either commission or fees.
What are your payment options?
Paying by Fee
Whether you buy a product or not, you will pay us a fee for our advice and services. If we also receive a commission from the product provider when you buy a product, we will pass on the full value of that commission to you in one or more ways. For example, we could reduce our fee; or reduce your product charges; or increase the investment amount; or refund the commission to you.
Paying by Commission (or product charges)
If you buy a financial product, we will normally receive commission on the sale from the product provider. Although you pay nothing up front, that does not mean our service is free. You still pay us indirectly through product charges. Product charges pay for the product provider's own costs and any commission. These charges reduce the amount left for investment. If you buy direct, the product charges could be the same as when buying them through an adviser, or they could be higher or lower. We will tell you how much the commission will be before we complete an investment, but you may ask for this information earlier.
How much might our services cost?
If you choose the fee option
We will agree the rate we will charge before beginning work. We will also tell you if you have to pay VAT.
Our typical charges are:
| Principal/Director/Partner | £150 - £200 per hour |
|---|---|
| Financial Adviser | £100 - £150 per hour |
| Administration | £25 - £75 per hour |
You may ask us for an estimate of how much in total we might charge. You may also ask us not to exceed a given amount without checking with you first.
If you choose the combination of commission and fee option
We will charge you for a combination of fees and commission. The actual amounts will depend upon the services provided to you, but will not exceed the total of the maximum fees set out above and the maximum commission set out in the tables below.
If you choose the commission option
Tables 1 and 2 show examples of the amounts of commission we could receive (or the equivalent we earn through product charges) and compare those amounts with the market average (see notes 1 and 2)
The amounts vary according to: the type of product, the amount you invest, and (sometimes) how long you invest for, or your age when you start the product. We will confirm the actual amount to you before you buy the product.
Commission and Fees tables
Table 1 - Commission if you invest monthly
| Products | Example Term or Age | Comparison of costs | Example based on £100 per month | |
|---|---|---|---|---|
| Our maximum | Market Average | This shows the maximum costs of our sales and advice for a monthly investment of £100, ignoring any changes in fund value | ||
| Savings and Investments | ||||
| Collective Investments (eg. Unit Trusts) | Any | 14% of the first 12 month's payments plus 4% of all payments from month 61 plus 0.5% of your fund value each year from year 1 | 7.8% of the first 12 month's payments plus 4% of all payments from month 61 plus 0.5% of your fund value each year from year 1 | £180initially plus £48 each year plus £6 in year 1, £12 in year 2, and so on (The actual amount in later years will vary in line with your fund value) |
| Endowments | 10 yr term | 45.4% of the first 12 months payments plus 2.5% of all payments from month 49 | 38.1% of the first 12 months payments plus 2.5% of all payments from month 49 | £544.80 initially plus £30 each year from month 49. |
| Protection | ||||
| Whole of life assurance | Age 40 | 126.5% of the first 12 months payments plus 2.5% of all payments from month 49 | 95.7% of the first 12 months payments plus 2.5% of all payments from month 49 | £1518 initially plus £30 each year from month 49. |
| Saving for retirement | ||||
| Personal and Stakeholder pensions | 10 yr term | 31.5% of the first 12 months payments plus 0.5% of your fund value from year 2 | 9.3%of the first 12 months payments plus 0.5% of your fund value from year 2 | £378 initially plus £12 in year 2, £18 in year 3, and so on (The actual amount in later years will vary in line with your fund value) |
| 25 yr term | 66% of the first 12 months payments plus 0.5% of your fund value from year 2 | 6.6%of the first 12 months payments plus 0.5% of your fund value from year 2 | £792 initially plus £12 in year 2, £18 in year 3, and so on (The actual amount in later years will vary in line with your fund value) | |
Table 2 - Commission if you invest a lump sum
| Products | Example Term or Age | Comparison of costs | Example based on £10,000 lump sum | |
|---|---|---|---|---|
| Our maximum | Market Average | This shows the maximum costs of our sales and advice for a lump sum investment of £10,000, ignoring any changes in fund value | ||
| Savings and Investments | ||||
| Collective Investments (eg. Unit Trusts) | Any | 4% of the amount you invest plus 0.5% of your fund value each year from year 0 | 1% of the amount you invest plus 0.5% of your fund value each year from year 0 | £400 plus £50 each year from year 0 (The actual amount in later years will vary in line with your fund value) |
| Investment Bonds | Any | 7.5% of the amount you invest plus 0.5% of your fund value each year from year 0 | 2.8% of the amount you invest plus 0.5% of your fund value each year from year 0 | £750 plus £50 each year from year 0 (The actual amount in later years will vary in line with your fund value) |
| Savings for Retirement | ||||
| Personal and Stakeholder pensions | Any | 7.5% of the amount you invest plus 0.5% of your fund value each year from year 0 | 1.4% of the amount you invest plus 0.5% of your fund value each year from year 0 | £750 plus £50 each year from year 0 (The actual amount in later years will vary in line with your fund value) |
| At retirement | ||||
| Annuities | Any | 2.8% of the amount you invest | 1.3% of the amount you invest | £280 |
| Income drawdown | Any | 3% of the amount you invest plus 0.5% of your fund value each year from year 2 | 2.3% of the amount you invest plus 0.5% of your fund value each year from year 2 | £300 plus £50 each year from year 2 (The actual amount in later years will vary in line with your fund value). |
Notes:
- The market average figures are calculated by the FSA using actual data from a representative sample of regulated firms and are shown in a way that you may compare with our own maximum rates. The market average figures will be updated by the FSA from time to time based on new data.
- Where a firm sells its own products it must calculate its figures according to FSA guidelines.
Further information
If you need further information or help:
- Ask your advisor at enquiries@dfpsolutions.co.uk
- Visit www.fsa.gov/consumer
