about our services and the costs

 

 

 

 

 

Russell House, Oxford Road, Bournemouth, Dorset. BH8 8EX

 

 

 

1.      The Financial Services Authority (FSA)

 

 

The FSA is the independent watchdog that regulates financial services. This document is designed by the FSA to be given to consumers considering buying certain financial products. You need to read this important document.  It explains the service you are being offered and how you will pay for it.

 

2.      Whose products do we offer?

 

Investment

 

R

We offer products from the whole market.

We only offer products from a limited number of companies.

We only offer products from a single company.

Insurance

 

R

We offer products from a range of insurers for Term Assurance, Mortgage Protection Assurance, Critical Illness Insurance, Private Medical Insurance, Permanent Health Insurance

 

We only offer products from a limited number of insurers.

 

We only offer products from a single insurer.

 

Mortgages

 

R

We offer mortgages from the whole market.

 

We only offer mortgages from a limited number of lenders

 

We only offer mortgages from a single lender.

 

3.      Which service will we provide you with?

 

Investment

 

R

We will advise and make a recommendation for you after we have assessed your needs.

 

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

 

Insurance

 

R

We will advise and make a recommendation for you after we have assessed your needs for Term Assurance, Mortgage Protection Assurance, Critical Illness Insurance, Private Medical Insurance, Permanent Health Insurance.

 

 

You will not receive advice or a recommendation from us in relation to Term Assurance, Mortgage Protection Assurance, Critical Illness, Private Medical Insurance & Permanent Health Insurance. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

 

Mortgages

 

R

We will advise and make a recommendation for you after we have assessed your needs.

 

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of mortgages that we will provide details on. You will then need to make your own choice about how to proceed.

 

4.      What will you have to pay us for our services?

 

Investment

 

 

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:

a
 

 

Paying by fee. Whether you buy a product or not, on completion of our work, 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.

 

We will confirm the rate we will charge in writing before beginning work and we will tell you if you have to pay VAT.  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.

 

Our typical charges are:

 

Hourly Rate

Financial adviser                                                            £150 per hour

Administration                                                                  £75 per hour

 

Fixed Project Fees – examples:

- Initial financial planning surgery (up to 3 hours)

with outline report, but with no specific product advice        From £450

- Amalgamation of up to 5 personal pension policies

with a view to purchase an annuity                                     From £1500

- A full bespoke financial planning report                        £1500 - £5000

- Arranging an ‘Open Market Option’                                 £600 to £800

 

 

 

 

 
 
 

 

 

 

 

 

 

 

 

 

 

 

Paying by commission (through 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.  The amount of commission we receive will vary depending on the amount you invest and (sometimes) how long you invest, or your age.

 

For example,

v                  If you invested £100,000 in an Investment Bond we would receive commission of £3,000 (3%) and 0.5% of the value of the fund (approximately £500) every year.

 

 

 

 

 

 

 

a
 

Paying by a combination of fee and commission (through product charges). In some circumstances, we may charge you a combination of fee and commission.  The fee will not exceed the rates shown in this document.  We will agree the rate we will charge before beginning work and we will tell you if you have to pay VAT.  The fee will become payable on completion of our work.  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.  We will tell you how much the commission will be before you complete an investment, but you may ask for this information earlier.

 

Where we charge a combination of fees and commission, our maximum rates are set out in the fee information and the commission sections above. In addition to the above we may charge a fee on a different basis for a specific transaction or project but we will agree this with you in advance.

 

 

Insurance

 

A fee. 

 

R

No fee for Term Assurance, Mortgage Protection Assurance, Critical Illness Insurance, Private Medical Insurance & Permanent Health Insurance.

 

You will receive a quotation which will tell you about any other fees relating to any particular insurance policy.

 

Mortgages

 

No fee. We will be paid by commission from the lender.

 

A fee of £750 for arranging the mortgage payable at the outset and we will refund to you any commission we earn from the lender.

 

 

A fee of £250 for arranging the mortgage payable at the outset.  This is in addition to any commission we may receive from the lender.

 

A fee of £295 for arranging the mortgage payable on completion.  This is in addition to any commission we may receive from the lender.

 

You will receive a key facts illustration when considering a particular mortgage which will tell you about any fees relating to it.

 

Refund of fees

If we charge you a fee, and your mortgage does not go ahead, you will receive:

 

A full refund if the lender rejects your application.

 

A refund of 50% of your fee if your application falls through.

 

No refund if you decide not to proceed.

 

5.      Who regulates us?

 

Southern Financial Services Ltd T/A LAfinancial is authorised and regulated by the Financial Services Authority. Our FSA Register number is 174623.

Our permitted business is advising and arranging investments, pension transfers, insurance and mortgages.

You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234.

 

6.      What to do if you have a complaint

 

If you wish to register a complaint, please contact us:

In writing:           The Managing Director, LAfinancial, Russell House, Oxford Road, Bournemouth Dorset. BH8 8EX.

By phone:                     Telephone: 01202 786199.

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

 

7.      Are we covered by the Financial Services Compensation Scheme (FSCS)?

 

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

 

Investment

 

Most types of investment business are covered for 100% of the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000.

 

Insurance

 

Insurance advising and arranging is covered for 100% of the first £2,000 and 90% of the remainder of the claim, without any upper limit.  For compulsory classes of insurance, insurance advising and arranging is covered for 100% of the claim, without any upper limit.

 

Mortgages

 

Mortgage advising and arranging is covered for 100% of the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000. Further information about compensation scheme arrangements is available from the FSCS.

 

 

 

24/04/09