First Wealth’s Fees

Following our Consumer Duty initiatives and a fair value assessment, First Wealth’s fees have been adapted to increase flexibility and consider the benefits our services provide clients. We are confident in our ability to deliver real value to you through helping you achieve financial wellbeing by identifying, achieving, and protecting what matters most to you. Here we explain a summary of our fees.=

What are First Wealth’s fees based on?

Our fees are based wholly upon the provision of our qualified and professional expertise. They reflect the time taken to analyse your circumstances and devise an appropriate strategy, the completion of Your Financial Plan (YFP) to communicate this strategy and the provision of ongoing advice and wealth management to support achieve and protect what matters most to you. The fees further consider our exposure to regulatory, commercial, and financial risk.

You will always know our fees before you decide to proceed. And, we have a transparent charging structure so you can be sure we are working efficiently for your benefit.

There are several fees to be aware of, as we explain below.

Your Financial Plan fee

The YFP fee will be based on a combination of how many existing contracts we will be reviewing and the specific areas you have asked us to consider. Once we have established enough information about your financial position following the introductory and discovery meetings, we will provide you with a personalised invoice confirming Your Financial Plan fee and the scope of work.

Our financial planning fees (and examples of the associated scope of work) are as follows:

• £3,000: this may be for one pension, two investments, and one protection policy.
• £5,000: this may be for four pensions, six investments, three protection policies, and inheritance/estate planning as a specific need.
• £7,000: this may be as above but with an additional requirement to consider pension property planning.

Though, for particularly complex planning requirements, we will provide a bespoke invoice (given in advance).

If you agree to proceed, this fee will be invoiced to you following our first meeting – we kindly ask for full payment before we start work.

If you are not satisfied, we are not satisfied. That’s why we will happily refund 100% of the YFP fee if you are not completely happy with the work we complete for you.

Implementation fees

Your Financial Plan will typically include a set of recommendations for new investments and pensions. For instance, to invest in an Individual Savings Account (ISA) each tax year.

First Wealth is remunerated at the implementation stage of any investments and pensions recommended to you.

The charge includes the advice, administration, and setting up of these products.

Our implementation fee is 1% of the amount you invest through First Wealth. For instance, if you invest a lump sum of £500,000, the implementation fee would be £5,000.

Equity release and retirement interest-only mortgages

For equity release and retirement interest-only mortgages we will receive a commission payment based on the size of the loan or product charge from the recommended lender.

As a client, you have the right to request the commission levels for each lender offering regulated mortgage contracts.

There could be other fees that will be required to be paid by you, like an arrangement fee to the lender we may recommend.

All fees will be disclosed to you in writing as and when they are decided.

Ongoing advice and service fees

Naturally, aspects of your finances and life will change over time, so our ongoing advice and service will adapt to these transitions before and after they occur. The ongoing advice and service includes financial planning and wealth management and is designed to keep you focused on what matters most.

First Wealth’s fees for ongoing advice is tiered depending on how much you’ve invested with us and whether those assets allow ongoing fees to be paid. The tiers are as follows:

• Tier 1: £0-£2,499,999, 1% per annum
• Tier 2: £2,500,000-£4,999,999, 0.8% per annum
• Tier 3: £5,000,000 plus, 0.3% per annum

Additional investment fees

In addition to First Wealth’s fees, there may be additional charges associated with the funds we recommend, the structures or pensions we invest in, and the wrap platform (sometimes referred to as custodian fees). Where applicable, we will inform you of the charges that will affect your investments and pensions as and when we become aware of them.

The specific amount you will pay depends on the portfolio you are invested in, the exact services you ask us to provide, and the amount you invest with us.

Minimum annual fee

The provision of ongoing advice and services is subject to a minimum fee of £2,000 each year. If fees received from your portfolio fall below this, we will invoice you for the difference between fees received and the minimum level.

Fees if you invest monthly

Our implementation fee also applies if you wish to invest on a monthly basis.

For instance, if you invest £1,000 per month into an ISA, we would earn 1% (£10) on each contribution. In addition to this, our annual fee of 1% is payable on the cumulative value of your investments annually.

Project work fees

Occasionally, we will be asked to undertake a piece of work that sits outside of our standard fee model. For example, helping the trustees of a pension scheme buy a commercial property via their pension fund.

If this is the case, we will always let you know in advance and will write to you with a Scope of Work brief including a project fee for the work requested. The fee quoted will be based on the amount of time required to successfully fulfil the specific project brief.

So, what’s the value?

Our research tells us that value is felt and described by clients in different ways. Our clients described the value they receive as two-pronged: objective and subjective.

The objective value you receive as a client of First Wealth is in factors like the organisation of your finances, the growth of your wealth, tax efficiency, or having a retirement plan.

But for many, the subjective gives the most value. This is where you receive a piece of mind and financial wellbeing. It’s having clarity, confidence, and control over your finances.

At First Wealth, we know the importance of that subjective value. That’s one of the driving reasons behind our journey to becoming (and recently recertifying as) a B Corp. For many, the knowledge that you are being supported by a business actively trying to have a more positive impact on the world around them increases your peace of mind.

As a client of First Wealth, all fees required from you will be communicated and agreed upon ahead of time.

Want to know more about First Wealth’s fees or chat about your finances? Book a meeting here, give us a call on 020 7467 2700 or email us at hello@firstwealth.co.uk.

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.