about our services and costs

Transcription

1 about our services and costs V7 28 th July 2015 Kelvin Financial Planning 180 West Regent Street Glasgow G2 4RW 1. The Financial Conduct Authority (FCA) The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers considering buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it. 2. Whose products do we offer? Investment Please refer to section 3 Insurance We offer products from a range of insurers for non-investment insurance contracts covering pure protection such as term assurance, income protection and critical illness. We only offer buildings and contents insurance products from a limited number of insurers for non-investment insurance contracts. Ask us for a list of the insurers we offer insurance from. Mortgages We can offer products from a single insurer for non-investment insurance contracts. We only offer our own products for non-investment insurance contracts. We are independent financial advisers and we offer a comprehensive range of mortgages from across the market, but not deals that you can obtain by going direct to a lender. We only offer mortgages from a limited number of companies. We only offer mortgages from a single lender. 1

2 Equity Release Equity Release products are either lifetime mortgages or home reversion plans. We offer a comprehensive range of equity release products from across the market, but not deals that you can only obtain by going direct to a lender. We only offer lifetime mortgages from a limited number of companies. We only offer lifetime mortgages from a single lender. 3. Which service will we provide you with? Investments Independent advice offer an independent advice service. We will recommend investments based on a comprehensive and fair analysis of the market. We will place no restrictions on the Investment Markets we will consider before providing investment recommendations, unless you instruct us otherwise. We will however only make a recommendation when we know it is suitable for you. Restricted advice We will advise and make recommendation for you after we have assessed your needs, but we only offer advice on limited types of products, or products from one company or a limited number of companies. Insurance No advice- You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed. Non-investment protection contracts we offer non investment protection products eg. term assurance, income protection and critical illness from a range of insurers. We will advise and make a recommendation for you after we have assessed your needs. We only offer buildings and contents insurance products from a limited number of insurers. Ask us for a list of the insurers we offer insurance from. We will advise and make a recommendation for you after we have assessed your needs. We can offer products from a single insurer for non-investment insurance contracts. We only offer our own products for non-investment insurance contracts. 2

3 4. What will you have to pay us for our services? The cost of our services You will pay a fee for our services (either via a fee paid by cheque by you or through the product via Customer Agreed Remuneration) with the exception of non-investment protection contracts such as term insurance for which we will receive commission. We will discuss your payment options with you before you are committed to paying a fee. We will not charge you until we have agreed with you how we are to be paid. Financial Planning Initial Fee Payment Options Implementation Fee Our Implementation fee option is available to clients who wish us to provide financial planning which includes a product recommendation. Our implementation fee is based on a percentage of the investment amount as follows: Initial Fee 1% of the investment amount subject to a minimum of 1,000. Ongoing Fee 1% of the investment amount subject to a minimum of 1,000 for our Comprehensive Service. Below this is our Primary Service. (please refer to the Kelvin Financial Planning Service Levels & Fee Agreement p10 for full details regarding our ongoing service options). For example, an investment of 150,000 we would receive an initial fee of 1% which equates to 1,500 and on an ongoing basis 1% of the value of the fund which is 1,500 every year. An investment of 50,000 would equate to 1,000, our minimum fee and 1% of the value of the fund 500 every year. The amount of annual ongoing charge may increase as funds grow. You may cancel this ongoing service at any time in writing to us. You will have the option of paying this fee directly to us or having it deducted from your investment. An invoice for the initial work will be issued within 7 days of completion of the work, if you have opted to pay the fee directly to us. We must receive full payment of the invoice amount within 30 days of issue. 3

4 Hourly Rate Our hourly fee option is available to clients who wish us to carry out a financial planning review or specialist project work which does not involve any product recommendation. We will agree a fee with you in advance based on the number of hours anticipated to complete the work. We will carry out a review of any existing plans, complete a cash flow analysis based on your current financial position and provide you with a report with our comments on your existing plans. Director Adviser Administrator 150 per hour 150 per hour 75 per hour Our average charge for a client with 4 existing plans is 1,112.50: Administrator 1.5 hours Director/Adviser 6 hours 900 We will always present you with a personalised quote before undertaking any work that might be charged for. We will tell you if you have to pay VAT We will issue an Invoice for the initial work within 7 days of completion of the work, which will be paid directly by you. We must receive full payment of the invoice amount within 30 days of issue. Should you decide to then opt for a full product recommendation we will offset the hourly rate fee against the implementation fee. Insurance A fee No fee specifically for non-investment contracts covering pure protection such as term assurance, income protection and critical illness cover and for buildings and contents insurance although the costs involved in advising on these areas maybe incorporated in to any fee that you pay us for other services. This will be made clear in your fee agreement. Normally commission will be taken and offset against our fee. However, if for any reason this product is cancelled by you during any period of clawback, we reserve the right to invoice you for this money. You will receive a quotation which will tell you about any other fees relating to any particular insurance policy. You will receive a quotation which will tell you about any commission payable to us. For cases where commission is taken such as life policies, the commission is normally subject to a clawback period by the product provider to allow them to recover costs if the product is cancelled during this period. Therefore if the product is cancelled, or lapses due to non-payment of any regular premiums by the Proposer of the contract, we reserve the right to invoice you (and by signing this document you agree to this) for the portion of the commission that is clawed back from us. 4

5 Mortgages No fee For mortgages we charge a 300 fee payable on issue of the mortgage offer. We will also be paid a procuration fee from the lender. Equity Release No fee For lifetime mortgages and home reversion plans we charge a 750 fee payable on issue of the mortgage offer. We will also be paid a procuration fee from the lender. If for any reason the mortgage does not proceed, we reserve the right to invoice you for a fee of 300 to cover our costs. For example, when inaccurate information is provided which results in additional work and submission of further applications. You will receive a key facts illustration when considering a particular mortgage/lifetime mortgage, which will tell you about any fees relating to it. 5. Who regulates us? Kelvin Financial Planning, 180 West Regent Street, Glasgow, G2 4RW is authorised and regulated by the Financial Conduct Authority. Our FCA Register number is Our permitted business is to provide investment advice and arrange life assurance, pensions, pension transfers, including Opt outs, mortgages, lifetime mortgages, home reversion plans and general insurance. You can check this on the FCA s Register by visiting the FCA s website or by contacting the FCA on What to do if you have a complaint? If you wish to register a complaint, please contact us: in writing: Write to: Kelvin Financial Planning, 180 West Regent Street, Glasgow, G2 4RW by phone: Telephone If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS). Further information about the FOS is available from their website If your complaint is found to be either frivolous or vexatious by the Financial Ombudsman Service we may charge you a fee for any expenses incurred and work carried out in respect of the complaint. 5

6 7. Are we covered by the Financial Services Compensation Scheme (FSCS)? We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Deposit Deposit business is covered up to 100% of (less any indebtedness to the institution) so the maximum compensation is Investment Arranging and advising on most types of investment (eg. A stocks and shares ISA) is covered up to a maximum limit of 50,000. Long Term Insurance Contracts Arranging and advising on long term insurance contracts (eg. A life insurance policy or annuity) is covered 100% of the claim without upper limit. General Insurance Contracts Arranging and advising on compulsory classes of insurance (eg. Employers liability), professional indemnity insurance, and general insurance contracts that pay out on death or incapacity due to injury, sickness, or infirmity (eg accident and sickness policy) is covered 100% of the claim without upper limit. Arranging and advising on other types of general insurance contracts (eg building and contents) is covered for 90% of the claim without upper limit. Cover for compulsory insurance is 100% of the claim with no upper limit. Mortgages and Equity Release Arranging advising on mortgages and equity release products is covered up to a maximum limit of 50,000. Further information about compensation scheme arrangements is available from the FSCS 1. Client Signature Date 2. Adviser Signature Date 6

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