WHAT ARE THE COSTS INVOLVED WITH SETTING UP A FINANCIAL PLAN?

By law all planners must disclose all forms of remuneration due to them. The cost to you, the client, will depend on the complexity of your financial situation and plan, as well as the remuneration model the planner uses. There are two main remuneration models used by planners, the commission based model and the fee based model.

For the commission based model, the commission is paid directly from the product provider to the planner. If this model is used for investments there could be some penalties imposed on you as the client if you decide to change the fund you are invested in or move your money to another provider.

For a fee based model the planner can charge an initial structuring fee, a monthly fee based on the direct debit amount and/or an annual advice fee. All these fees are negotiable and should be discussed with you before you commit to the plan.