We charge a fixed fee, based on case complexity. This will be agreed at outset and reviewed annually.
Most advisers charge a percentage of assets under management.
According to an FCA study1, clients can expect to incur an initial advice fee of 2.4%, an ongoing advice fee of 0.8% per year, and total ongoing costs of 1.9% per year once you add third-party investment and custodian charges.
We don't think this is fair on you at all.
With Blincoe, a client with £1m invested and relatively complex needs (say 20 hours’ worth of advice per year) can expect to save c. £8,000 per year vs the FCA average. Whereas one with more straightforward needs (say 8 hours per year) would save more like £11,600.
We charge an initial advice fee for policy-set up and the analysis of any existing plans. This is based on the following:
Research and Report
£600
Pension transfer (per scheme)
£300 or 0.75% if lower
ISA / GIA (per scheme)
£150 or 0.75% if lower
Specialist investments, e.g. VCTs, EIS, AIM (per scheme)
£300
Specialist trust investments, e.g. DGTs, FRTs, loan trusts
£600
We charge an ongoing advice fee to review and fine-tune your plan each year. This is based on the projected time required to deliver our advice and services to you.
We cap the ongoing fee at the lower of £6,000 and 0.75% of assets under management. Please see some examples below.
For an indication of the costs you could expect, see which example resonates with your situation the most.
A new client wants to transfer two existing pensions, worth £500,000 and £5,000, and two ISAs, worth £250,000 and £15,000. They also wish to open a new investment account with initial funds of £100,000.
Research and Report
£600
Pension transfer 1 (fixed fee)
£300
Pension transfer 2 (0.75% cap applies)
£37.50
ISA transfer 1 (fixed fee)
£300
ISA transfer 2 (0.75% cap applies)
£600
New GIA, funded from cash
FREE
Total =
Saving vs FCA Average (2.4%)
£1,275
£19,605
Bill and Betty are in their late-50s and approaching retirement. They require comprehensive cashflow planning to gauge when they can afford to retire and what that retirement will look like in terms of spending power.
They’re considering some additional pension contributions prior to retirement, and how best to draw an income post-retirement. And they want to bring all their investments and pensions under our advice, worth a combined £1m.
We project their advice will cost around £5,400 per year, or 0.54% the current value of assets. Third-party platform and investment costs are projected at 0.50% per year.
That implies a total ‘all-in’ fee of around £10,400 per year, or 1.04% the current investment value.
Total =
Saving vs FCA Average (1.9%)
£10,400 / year
£8,600 / year
Adam and Alex are in their mid-30s and are seeking some advice around their investments and pensions.
This includes the utilisation of their ISA allowances, pension contributions and capital gains tax mitigation. Total assets under advice are £400,000 and they do not need any complex cashflow modelling at this point.
We project their advice will cost around £2,400 per year, equivalent to 0.60% the current value of assets. Third-party platform and investment costs are projected at 0.50% per year.
That implies a total ‘all-in’ fee of around £4,400 per year, or 1.01% the current investment value.
Total =
Saving vs FCA Average (1.9%)
£4,400 / year
£3,200 / year
A group of trustees wish to receive advice on a newly established discretionary trust, worth £2m. The monies are likely to be left untouched for the foreseeable future.
This is a straightforward case - we advise on a suitable investment solution. We then meet once a year to review this, and issue the trustees with a comprehensive report to assist them in their fiduciary responsibilities.
We project their advice will cost around £1,800 per year, or 0.07% the current value of assets. Third-party platform and investment costs are projected at 0.50% per year.
That implies a total ‘all-in’ fee of around £11,400 per year, or 0.57% the current investment value.
Total =
Saving vs FCA Average (1.9%)
£11,400 / year
£26,600 / year
Blincoe Financial Planning Limited is an appointed representative of Sense Network Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales, No. 14569306. Registered office: Star Lodge, Montpellier Drive, Cheltenham GL50 1TY. Blincoe Financial Planning Ltd is entered on the Financial Services Register under reference 1000321. The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.
