Alpha Financial Services (UK) Ltd

   about the cost of our services

 

 

1.         The Financial Services Authority (FSA)

The FSA is the independent regulator of financial services. It requires us to give you this document when advising on some savings and investments. You may use this information to compare value for money, to shop around and to decide which firm to use.

As Independent Financial Advisers we are free to advise on financial products available from all product providers. We use advanced computer software to research, compare and select the most suitable deals currently available. We are thus able to make arrangements to maximise the benefits to our clients.

You'll get our help to review your existing financial situation and reach a realistic assessment of your likely needs. For this, you'll need to set aside some time to talk to us - the first one-hour consultation is free. There's no charge, and no obligation, while we find out together if it's worth going ahead.

 

3.         What are your payment options?

 

Not all firms charge for advice in the same way. We will discuss your payment options with you and answer any questions you have. We will not charge you anything until you have agreed how we are to be paid. We have ticked the payment options we offer.

 

 

 

 

Paying by fee. Whether you buy a product or not, you will pay us a fee for our advice and services. If we also receive commission from the product provider when you buy a product, we will pass on the full value of that commission to you in one or more ways. For example, we could reduce our fee; or reduce your product charges; or increase your investment amount; or refund the commission to you.

 

 

 

 

 

 

 

 

 

Paying by commission (or product charges). If you buy a financial product, we will normally receive commission on the sale from the product provider. Although you pay nothing up front, that does not mean our service is free. You still pay us indirectly through product charges. Product charges pay for the product provider’s own costs and any commission. These charges reduce the amount left for investment. If you buy direct, the product charges could be the same as when buying through an adviser, or they could be higher or lower. We will tell you how much the commission will be before you complete an investment, but you may ask for this information earlier.

 

 

 

 

 

 

4.         How much might our services cost?

 

We will agree the rate we will charge before beginning work. We will tell you if you have to pay VAT. 

Our charges are:

Principal/Director/Partner       £ 125.00 per hour

Financial adviser                     £ 125.00 per hour

Administration                         £ 50 per hour

You may ask us for an estimate of how much in total we might charge. You may also ask us not to exceed a given amount without checking with you first.

 

Tables 1 and 2 show examples of the amounts of commission we could receive (or the equivalent we earn through product charges) and compare those amounts with the market average (see notes 1 & 2 at the end of this section 4).

The amounts vary according to: the type of product, the amount you invest, and (sometimes) how long you invest for, or your age when you start the product. We will confirm the actual amount to you before you buy a product.

Table 1 - Commission if you invest monthly

Products

Savings and investments

Collective investments (eg unit trusts)

Any

5.2% of all payments plus 0.5% of your fund value each year from year 2

2.4% of all payments plus 0.5% of your fund value each year from year 2

£62.40 each year plus £12.00 in year 2, £18.00 in year 3, and so on (The actual amount in later years will vary in line with your fund value)

Endowments

10 year term

46.7% of the first 12 month’s payments plus 2.5% of all payments from month 17

30.3% of the first 12 month's payments plus 2.5% of all payments from month 17

£560.40 initially plus £30.00 each year from month 17

Protection

Whole of life assurance

Age 40

126.5% of the first 12 month’s payments plus 2.5% of all payments from month 49

101.3% of the first 12 month's payments plus 2.5% of all payments from month 49

£1518.00 initially plus £30.00 each year from month 49

Saving for retirement

Personal and Stakeholder pensions

25 year term

56.2% of the first 12 month’s payments plus 2.5% of all payments from month 28

21.9% of the first 12 month's payments plus 2.5% of all payments from month 28

£674.40 initially plus £30.00 each year from month 28

10 year term

26.4% of the first 12 months payments plus 2.5% of all payments from month 13

9.9% of the first 12 month's payments plus 2.5% of all payments from month 13

£316.80 initially plus £30.00 each year from month 13

Not all types of personal pension scheme are included in the information above about commissions. Instead only the more common types are included, and schemes such as SIPPs are not. Before we start advising you, we will inform you of how much we could be paid if we do recommend one of these products to you.

You can ask us about commission we might receive on underlying investments we recommend you hold within a SIPP if not contained in the information above.

Table 2 - Commission if you invest a lump sum

Products

Example term or age

Comparison of costs

Example based on

£10000 lump sum

Savings and investments

Collective investments (eg unit trusts)

Any

5.1% of the amount you invest plus 0.5% of your fund value each year from year 2

1.8% of the amount you invest plus 0.5% of your fund value each year from year 2

£510.00 plus £50.00 each year from year 2 (The actual amount in later years will vary in line with your fund value)

Investment Bond

Any

5.5% of the amount you invest plus 0.5% of your fund value each year from year 2

2.3% of the amount you invest plus 0.5% of your fund value each year from year 2

£550.00 plus £50.00 each year from year 2 (The actual amount in later years will vary in line with your fund value)

Saving for retirement

Personal and Stakeholder pensions

Any

7% of the amount you invest

5.6% of the amount you invest

£700.00

Not all types of personal pension scheme are included in the information above about commissions. Instead only the more common types are included, and schemes such as SIPPs are not. Before we start advising you, we will inform you of how much we could be paid if we do recommend one of these products to you.

You can ask us about commission we might receive on underlying investments we recommend you hold within a SIPP if not contained in the information above.

At retirement

Annuities

Any

2.5% of the amount you invest

1.4% of the amount you invest

£250.00

Income drawdown

Any

11.4% of the amount you invest plus 0.5% of your fund value each year from year 2

2.5% of the amount you invest plus 0.5% of your fund value each year from year 2

£1140.00 plus £50.00 each year from year 2 (The actual amount in later years will vary in line with your fund value)

5.         Further information

If you need any more help or information

·         ask your adviser; or

·         visit www.fsa.gov.uk/consumer.