How do you pay for financial advice?

The associated costs for each stage of the Newcastle Financial Advisers service, ad hoc fees and hourly rates are shown below.


1. Understanding & Analysis

  • There is a £400 Understanding & Analysis fee which is offset against the Advice & Implementation fee
  • If you decide not to progress past the Understanding & Analysis stage you will not be charged the £400 Understanding & Analysis fee

 

Newcastle Financial Advisers will not charge a fee unless you implement their advice


2. Advice & Implementation

Single Premium Lump Sum

  • You will pay the grater for the £400 Understanding & Analysis fee or the charging structure below; 3% of the first £100,000 invested, then 2% of the amount invested between £100,001 - £200,000, then 1% of the amount invested above £200,0000

 

Example of Single Premium Lump Sum Fee

  • If you invested £40,000 teh advice fee would be 3% which means £1,200 would be immediately deducted from your investment or paid directly to Newcastle Financial Advisers.

 

Regular Premiums

  • £400 Understanding & Analysis fee plus 3% of the first 24 months contributions

 

Example of Regular Premium Fee

  • For a regular premium of £100 you would pay the Understanding & Analysis fee of £400 plus 3% of the first 24 months' contributions (£72) so the total fee amount would be £472. If you choose to pay in instalments, after paying the £400 Understanding & Analysis fee, £3 would be deducted from each of the 24 months' contribution. 

 

All advice fees are expemt from VAT and are non refundable. Fees can be paid via cheque or deucted from the funds invested. 


3. Ongoing Service

  • Newcastle Financial Advisers charge a fee of 0.7%* per annum of your total investments

 

Payment Example of Ongoing Service Fees

  • If you invest £40,000 the Ongoing Service fee is 0.7%, you will pay £280 per annum excluding VAT payable on a monthly basis from the first month after you invest. The Ongoing Service charge may increase as the fund grows.

Additional fees for customers who have not taken Ongoing Service

The ad hoc fees and hourly rates apply when Newcastle Financial Advisers are undertaking work for customers who have not taken the Ongoing Service. The fees for the portfolio review service and transaction fees can be viewed below.

 


Portfolio Review

  • You will pay the greater amount of 1% + VAT of the value of your portfolio at the time or the £400 Understanding & Analysis fee


Transactional Services

  • Hourly rate for advice service £150 + VAT/hour. Hourly rate for administration services £50 + VAT/hour

*If you elect to receive the Ongoing Service, Newcastle Financial Advisers will charge you a percentage of your investments. This charge will be deducted from your investments, of which 0.12% goes to Openwork on an ongoing basis. This charge pays for ongoing technology and administrative support for investment products provided by Openwork to help maintain the quality and delivery of the Ongoing Service. In addition Newcastle Financial Advisers also pays a percentage of the total fees to Openwork for the advice and support service they provide.