During your first consultation, potential advisors must give you clear information about what service you offer and give you an indication of what you have to pay for it. This will allow you to compare the costs of financial suggestions and get around for advisors which are the best value for money.
Your advisor will explain the above by giving you two kefaction documents about:
Service: This document explains the type of suggestion you experience
Offered and various products offered.
Cost: This list explains various ways you can pay for the advice you receive. It also provides indications of costs or commissions that you might have to pay. If you pay with a commission, it shows you how this is compared to the average market commission
The new suggestion regime (introduced in December 2004) makes it easier to understand what you have to pay. You must be given a cost menu from the advisor when you first search for advice. This will allow you to compare suggestion costs and get around for better service.
There are three main ways to pay for advice, described in the following sections.
Costs are subject to hourly fees or as prices set for all jobs. This is known as the only cost suggestion and is the most expensive choice, at a cost that costs ranging from £ 75 to £ 250 per hour (depending on your location and how experienced your advisor). You might get the first half hour free; The initial meeting is often an introductory session where you only get to know each other better and find out if you like working with advisers.
You have to pay a fee even if you don’t take financial products. This doesn’t happen if you pay with a commission.
If you pay a hourly fee, make sure you get a rough idea about how many hours of work are needed and how much it costs a total. Ask your advisor to estimate how much he bills you. You can also request that he not exceed the given amount without checking with you first.
If you use IFA, you can choose to pay fees rather than commissions. Only ifa must offer a choice of payment options. Bound and multi-bound agents don’t need to offer choices, even though they can decide for anything.
Go with commissions
If you are not ready to pay fees, or not afford, some advisors collect commissions instead – and all IFAS must offer this option. The Commission is deducted by providers of personal financial products when you invest money in a product. As well as the initial commission to prepare a plan, you can also be charged the annual commission above, known as the trail commission. Check with your advisor whether this applies before registering.
Combine costs and commissions
You don’t have to choose a fee or commission – you can have a combination of both. Some product providers pay your advisory commission when you buy a product, which he can convey to you in one of several ways. This includes through the full value of the commission to you by reducing the cost; Reduce product costs; increase the amount of your investment; or restore the commission to you.
Search for negotiations
Imagine this: a widow of £ 100,000 deposit to his savings account after selling his house and moving to a smaller place. Bank or Building Society sees this deposit and offers it opportunity to increase its income. Half an hour later, he had sold anything that pushed the bank for those in the situation. Advisers may get as many as 7 percent of commissions. It’s £ 7,000 for 30 minutes of easy work. Great money! And there is no investment risk!
Agents are bound and those who work for large companies rarely negotiate even if you ask. If you like to share so much your money for a little work, it’s fine, as long as you know what you are doing.