There is no charge for this initial meeting.
First Wealth charge fees in three ways; a fixed fee to produce Your Financial Plan, an implementation fee for investing money and an annual fee for ongoing advice and service. The fees you pay will be determined by the services you ask us to provide.
The basic fee will increase if there are additional legal entities (a business, registered trust or charity) included in the plan.
• The cost of Your Financial Plan, with one additional legal entity is £3,000.
• The cost of Your Financial Plan, with two additional legal entities is £4,000.
• The cost of Your Financial Plan, with three or more additional legal entities is £5,000.
Your Financial Planning fee is capped at a maximum of £5,000, irrespective of the number of legal entities in excess of those outlined above.
Your Financial Planner will advise you on the fee level given your situation.
Subject to your agreement to proceed, this fee will be invoiced to you following our first meeting, but we only ask for payment after the work has been done and you are 100% happy with Your Financial Plan.
IMPLEMENTATION FEES
Your Financial Plan will typically include a set of recommendations for new investments and pensions; for example, to invest into an Individual Savings Account (ISA) each year. First Wealth is remunerated at the implementation stage of any investments and pensions that we recommend to you. The charge includes the advice, administration and set up of these products. Our implementation fee is 1% of the amount of money you invest through First Wealth. For example, if you invested a lump sum of £500,000, our implementation fee would be £5,000.
ONGOING ADVICE AND SERVICE FEES
Once the initial financial plan is put in place, our ongoing advice and service is designed to keep you focused on meeting your Life Goals® and objectives. Naturally, aspects of your finances and your 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 both the financial planning and wealth management aspects of our relationship. Our ongoing advice and service fee is 1% per annum. For example, if you invest a lump sum of £1,000,000 our ongoing advice and service fee would be £10,000 per annum.
ADDITIONAL INVESTMENT FEES
In addition to the First Wealth fees, there may be additional charges associated with the funds we recommend, the structures or pensions we invest in and the wrap platform (also referred to as custodian fees). Where applicable we will inform you of the charges that will affect your investment and pensions. Typical investment fees are applied for discretionary investment management, wrap platform and the underlying financial instruments we invest in on your behalf. 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. Using the example, above, if you invested £1,000,000 into discretionary managed, First Wealth Evidence Based balanced portfolio, with the assets managed on the Fusion wrap platform, the annual fees would be as follows; discretionary management fee 0.08% plus VAT (0.096%, £960), costs of underlying financial instruments 0.23% (£2,300) and Fusion wrap platform 0.22% (£2,200). Including the First Wealth fee of 1% per annum, this gives a total cost of ownership of 1.546% (£15,460 on a £1,000,000 investment).
