How 23 advice firms charge their clients

We have compiled the fee structures of this year's New Model Adviser® cover star firms.

How advisers charge their clients is always an issue which generates debate among our readers.

Not often do you find two different advice firms charging their clients in exactly the same way.

The issue of adviser charges is also going to be examined by MPs in an upcoming Work and Pensions Select Committee inquiry.

We looked at the fee structures of 23 New Model Adviser® cover star firms from this year. It is interesting to see how different each structure is, reflecting different business models and client needs. 

Click through to read more

How advisers charge their clients is always an issue which generates debate among our readers.

Not often do you find two different advice firms charging their clients in exactly the same way.

The issue of adviser charges is also going to be examined by MPs in an upcoming Work and Pensions Select Committee inquiry.

We looked at the fee structures of 23 New Model Adviser® cover star firms from this year. It is interesting to see how different each structure is, reflecting different business models and client needs. 

Click through to read more

HFS Milbourne

3% for investments up to £150,000.

1% ongoing.

£325 hourly rate for the senior advice team or director sometimes billed to law firms or clients. 

Furnley House

Foundation service: 3.5% initial and implementation, 0.5% ongoing. 

Premium service: 2.4% initial, 0.75% ongoing. 

Bespoke: Fixed fee, 1.5-2% implementation, 1% ongoing.

Equilibrium

Up to £1.25 million: 0.38% initial capped at £3,125, 1.25% implementation capped at £10,500 and 1.25% ongoing capped at £9,375.

More than £1.25 million: 0.25% initial capped at £1,250, 0.84% implementation on first £3 million, 0.5% for £3-£6 million then negotiable.

Ongoing: 0.75% on first £3 million and 0.25% above that.

White Oak

3% implementation on first £50,000.

2% on next £50,000.

1% on next £50,000 and 0.5% thereafter.

Ongoing: 1% for £150,000 or less and 0.75% thereafter.

RTS Financial Planning

Entry level: £37 for guidance and a passive investment portfolio if suitable.

Tier two: £127 a month for a financial plan, initial work and two meetings a year.

Tier three: £397 a month for all the above plus four meetings.

Smart Financial

Initial and ongoing fees are minimum £3,000 but typically £5,000 each.

Ascot Wealth Management

Face to face advice: 1-3% initial, 1% ongoing.

AWM Virtual: up to 1% initial and 1% ongoing.

First Wealth

Free initial.

£2,000 implementation. At this stage there may be a 1% initial fee.

1% ongoing.

First Wealth

Free initial.

£2,000 implementation. At this stage there may be a 1% initial fee.

1% ongoing.

Thornton Chartered Financial Planners

Free initial.

£1,500 implementation.

0.75% ongoing if using platform, 0.5% if using a discretionary fund manager (DFM).

Punter Southall Financial Management

£1,500 initial.

0.5-2% implementation.

0.75% ongoing if using DFM, 1% up to £500,000 and 0.75% after if the firm is managing investments. 0.25% for using multi-asset funds.

SWC Independent

0.65% ongoing.

Devonshire Wealth Management

Initial: 1% or £80 per hour admin plus £250 adviser fee.

Ongoing: 0.5% with DFM and 0.75% in-house.

Adroit Financial Planning

Free initial.

Implementation: 3% up to £100,000, 2% for £100,000-£200,000, 1.5% for £200,000-£500,000, 1% for more than £500,000.

Ongoing: 75 bps up to £3 million. Vulnerable clients typically pay 35 bps.

Wealth Design

Free initial.

£750 to create a report, offset against implementation. This is 3% on first £100,000 and 1.5% thereafter up to max of £16,000.

Ongoing: max 1% but usually 0.5%.

Future Asset Management

Initial: £297.

Option 1, specific products and pension planning: 75 bps ongoing.

Option two, full plan: 75bps charge plus £797 annual fee.

Option three, corporate service: £1,267 ongoing.

Implementation for two and three: £757.

Pension benefits advice: 2%.

Cashflow modelling: £397.

Arrangement of all investments: 4% of funds invested on first £50,000, 2% thereafter.

Holland Hahn & Wills

Financial plan: £1,500.

1% implementation.

1% ongoing.

Engage Financial Services

Free initial.

Plan between £1,995 and £3,995 (includes implementation if decide to go ahead.)

Tier 1 ongoing: £333 a month or £4,000 a year.

Tier 2: £667 a month or £8,000 a year.

Tier 3: £1,250 a month or £15,000 a year.

Complex tier starts at £25,000 a year.

Money Honey

Automated advice package: 0.25% plus Parmenion’s fee.

Guidance: £25 per 20 mins.

Financial planning: £500 initial, 0.5% implementation, £50 per month plus 0.25% for investments ongoing.

Hnabury Wealth

Ongoing: 1% tapering down.

Initial and implementation: around £5,000.

ML Financial Associates

Free initial for referrals or £270.

Report and follow up: between £500 and £2,500.

Up to £75,000 0.5% ongoing, above is 1% ongoing.

Holden & Partners

Free initial.

Full management: 1% initial with £250,000 minimum portfolio size.

Ongoing: 1% up to £1 million, 0.6% on next £1 million and 0.35% above that.

Financial planning fixed fee: usually around £1,250.

Mulberry Bow

Two free initial meetings.

1% implementation for referred clients.

1% ongoing falling to 0.75% after £3 million.

Those who just want planning pay between £5,000 and £20,000 a year.

Planet 3 Wealth

‘Once’ option (transactional).

'Lite' (Skype, phone, email) ongoing is 0.5%.

'Core' (9am-5pm meetings) initial fixed starting at £500, implementation first £50,000 3%, next £100,000 2.75%, next £150,000 at 2.25%, next £200,000 at 1.5%, next £500,000 at 0.75%, above £1 million 0.1-0.35%. Offset against implementation. Ongoing is 0.75%.

Flex (home and out of hours) initial fixed starting at £500. Ongoing is 1%. Implementation same as 'core'.

Plus (cashflow) ongoing is 1% plus £500 a year.

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