Cost of Services
The financial services industry is currently undergoing a period of transition. From January 2013, some financial products that have traditionally paid your adviser a commission for the advice given will no longer be able to offer remuneration in this way.
This means that some financial products can only be provided by you paying your adviser an initial fee. Basically, this means that DGS clients will have to pay a fee in future for any investment and pension plans that are set up. However, this doesn’t mean you are worse off . Quite the contrary, in fact. The effect of you paying a fee for the advice received means that there are no commission-related charges in your investment and pension plans that could drag down the performance of your fund.
Advisers at DGS offer two levels of service to our individual clients. The level of service chosen will typically depend on whether you require one-off advice (Transactional Service) or whether you require ongoing financial reviews. If you require ongoing reviews, there are two further options to choose from: Financial Advice Service or Full Wealth Planning. The following advice areas tend to initially be areas of one-off advice, with no future financial reviews needed:
- Mortgage Advice
- Equity Release (Lifetime Mortgages)
- Long Term Care Planning
- Life Assurance
- Income Protection Insurance
- Converting your pension fund into a retirement annuity
For advice on any of the above areas, there is usually no fee for the initial consultation. If this offer isn’t possible, perhaps due to a requirement for specialist advice or if you require a home visit that isn’t local to our offices, or for any other reason, we will tell you up front how much the initial consultation fee will be.
If you would like to set up an investment based product, there is typically a need for future financial reviews to check on the progress of your plan and to ensure that you continue to remain on track to achieve your goals. Areas of advice where regular financial reviews are common:
- Lump Sum Investments
- Stocks & Shares ISAs
- Personal Pension Plans
- Inheritance Tax Planning
- Drawdown Pension Plans (income drawdown)
- High earners in final salary schemes
We provide all of our prospective clients with a free initial no-obligation consultation, subject to the possible exceptions as previously mentioned. We will explain any fees or commissions that we expect to receive in order to set up your chosen arrangement, and we will provide you with the flexibility to choose to pay a fee, a commission or a combination of both for providing our advice (where available).
An initial consultation usually lasts for around 1 hour, but can be longer.
To provide you with an idea of the cost of our advice:- it usually is around 3% of the amount invested and can range from 1% to 5% of the initial amount invested. There is an optional adviser charge that may be applied usually 0.5%, to provide you with regular reviews thereafter. The annual adviser charge may range from 0.25% to 1.00% pa. As an alternative, a fixed-fee service can also be provided where this is preferable. This option can be discussed at the initial meeting.
We know that we are extremely competitive with our typical 0.5% charge for on-going reviews. Therefore, if you are paying more than this at the moment, please contact us to see if we can offer you a more competitive charging structure while continuing to provide you with the on-going service and advice you require.
DGS have offices in London, Hertfordshire and the Midlands. We have a dedicated team of independent financial advisers (IFA) and chartered financial planners who can ensure you are receiving the right financial advice and the highest standard of service.
We also hold 'Chartered Financial Planner' status. To find out more about what that means for you, click here.