Investment Services & Costs
We will provide you with an initial consultation free of charge and without obligation. This helps us to understand your financial objectives and we will confirm how we can support you in working towards these goals. We will also discuss the cost, and levels, of our services both initially and throughout our relationship with you. We charge our services by way of a fee. These fees are based on a percentage of the amount you invest, subject to a minimum fee. The 2 steps of this process are explained here;
Initial Advice Fees
Step 1: Financial Review & Recommendation
This can be a continuation from the initial discussion, where agreed, or a further appointment. This process covers the:
- gathering of information about your existing financial arrangements and full personal circumstances;
- understanding of your investment knowledge and attitude and tolerance towards investment risk;
- recommendation of an asset allocation model that matches your risk profile and the subsequent assessment and suitability of any existing holdings;
- preparation of our recommendations to you;
- arranging a second appointment to explain and discuss our recommendations in detail.
Our charge for this service is a fixed fee of £1,250 payable on provision of the report containing our recommendation(s) to you. This fee will be waived wholly or in part should you decide to implement any of our recommendations.
Step 2: Policy Arrangement & Implementation
Should you instruct us to proceed with (any of) our recommendation(s) we will act for you in the following ways:
- Handle all fund and policy administration on your behalf;
- Provide regular updates to keep you informed of progress;
- Ensure all your documents are issued in line with your expectations;
- Provide confirmation of all actions taken on your behalf in writing.
Our charge for this service is based on a percentage of the amount you invest and/or transfer. These charges are applied as follows:
- 3% on the first £100,000, followed by;
- 1% on £100,001 and above.
Our initial advice fees are capped at £7,500 per investment.
This payment can either be facilitated by the product provider when they receive your funds or paid directly by you. Where we receive such a payment, we will waive our ‘financial review and recommendation’ fee by the same amount.
Example 1; if we arrange an investment on your behalf for £30,000 our Policy Arrangement & Implementation fee would be £900. As this is less than the ‘financial review and recommendation’ fee of £1,250 we would charge you an additional £350 as the balance. The total fee payable would be £1,250.
Example 2; if we arrange investments on your behalf totalling £250,000 our Policy Arrangement & Implementation fee would be £4,500 (3% of the first £100,000 (i.e. £3,000) plus 1% of the next £150,000 (i.e. £1,500) . As this exceeds the ‘financial review and recommendation’ fee no other charges would be applied. The total fee payable would be £4,500.
Example 3; if we arrange investments on your behalf totalling £1,000,000 our Policy Arrangement & Implementation fee would be £12,000 (3% of the first £100,000 (£3,000) plus 1% of the next £900,000 (£9,000)). As this exceeds our ‘initial fee cap’ we would reduce the fee in line with our maximum charge so the total fee payable would be £7,500.
Policy Arrangement & Implementation – Regular Savings & Investments
Our charge for implementing a new regular contribution savings or investment plan is a fixed fee of £1,250. Again, we will waive our ‘financial review and recommendation’ fee by the same amount, if applicable. You can either pay this directly on commencement of the policy or you can facilitate the implementation fee through your policy. If you would like to pay the implementation fee through your policy this will be charged at £104.67 per month over the first 12 months.
Should you decide to pay this charge through your policy and payments to the policy subsequently cease, we will calculate the total payments received to date and charge you the balance against the implementation fee.
For example, if you invest £500 per month our total policy arrangement and implementation charge will be £1,250. We will deduct £104.67 from each monthly contribution until paid in full. Should payments cease after month 6 (and £628.02 has been collected) the difference will be charged to you i.e. £621.98.
Non-Investment Protection Insurance and General Insurance Contracts
When we arrange the sale of a protection or insurance contract, we will not charge you a fee, as we will receive a commission from the provider/insurer. The amount of this will be disclosed to you in the product literature.
Ongoing Advice Fees
Ongoing Investment & Advice Service
All investments should be reviewed on a regular basis we therefore offer a full ongoing investment and review advice service. It is completely optional as to whether or not you would like access this service Below we set out the ongoing services we provide and the associated costs.
1. An annual financial review meeting to assess:
- Your needs and objectives
- Changes in your personal and business circumstances
- Your attitude to risk and capacity for loss
- Impact of tax and legislative changes, including available annual tax reliefs and allowances
- Your will and personal estate
- Review of the suitability of your investments
- Full ongoing investment management service, which will include a review of the underlying investment funds within your portfolio. This will ensure the funds are continually re-aligned each year to our recommended model portfolio, for your chosen risk profile
- Provision of a personal recommendation
2. Ongoing access to a qualified Chartered Financial Adviser to assist you with any queries/advice at your request
3. Liaison, at your request, with any other professional adviser (e.g. your solicitor or accountant)
4. Ongoing administration support, including policy administration and liaison with providers
5. Regular portfolio valuations (every 6 months); Budget Update (once a year) and investment market updates (quarterly)
6. 24/7 access to your investment and/or pension portfolios, including online valuations (via the provider website), which are updated daily
7. Personalised 24/7 access to your own, fully secure, online ‘Personal Finance Portal’ via the Sweeny Wealth Management wesbite. This facility also includes a secure messaging facility, electronic document storage facilities, portfolio valuations (which are updated daily) and investment analytics data.
The cost of this service is based on the value of your investment(s) held with us and is charged at 0.9% of their value per annum. These fees are payable monthly at a rate of 1/12th of 0.9% per month). The minimum charge for this service is £500.00 per annum and the maximum charge is £6,000 per annum.
The examples below are to help you understand how our charges will be applied;
Example 1; if your investments are valued at £50,000 the 0.9% charge would be £450 per annum. As this is less than our minimum annual fee for this service we would charge an additional £50.00 as the balance. The total fee payable would be £500.
Example 2; if your investments are valued at £200,000 the 0.9% charge would be £1,800 and would be the total fee payable for that year.
Example 3; if your investments are valued at £1,000,000 the 0.9% charge would be £9,000. As this exceeds our charge cap we would reduce the fee in line with our maximum charge so the total payable would be £6,000 per annum.
Where the value of your investments rises, then the fees for this service will increase, conversely, if the value of your investments falls, the cost of this service will decrease. This is subject to the above maximum charge.
You can choose to pay this fee directly or by deduction from the policy(ies) you hold. Should you wish to pay directly you can spread the payment over a 12-month period by standing order.
When you sign this ongoing service agreement it is deemed to commence immediately and payable monthly in arrears. You can choose to cancel this at any time by providing us with written confirmation of your decision. Payments would then cease within 7 business days or after collection of any due proportion of any period charges if later.