Many people are less inclined to seek financial advice because of the perceived cost, however since the Retail Distribution Review in 2012 banned advisers from receiving commission on investment-related products, and required them to disclose their charges up front, individuals are able to easily identify how much they are paying and therefore judge whether they are receiving value for money.

Harrogate Wealth Management are staunch advocates of fee based advice, rather than relying on an incentive in the form of a commission to promote a product. After a free initial meeting without obligation we will make sure that our fees are transparent, disclosed in advance and agreed before undertaking any work on your behalf.

The following fees could be levied

Initial Fee

This is the work involved in analysing and researching your existing investments before identifying a suitable financial strategy for the future. The fee is usually calculated based on an hourly rate for the level of expertise required to complete the work. It is possible to charge on a fixed fee basis which can be agreed with you prior to engagement.

Implementation Fee

When new monies are invested or funds are transferred into a new arrangement, an implementation fee will be charged on a tiered scale as follows:

Ongoing Advice and Service Fee

Once the new strategy is in place we will continue to monitor your investments and advise you on a regular basis. We will ensure that your financial plan is up to date relevant and meeting its objectives. For our ongoing service and advice we will charge a percentage of the funds under our management. This would typically be deducted from the investments and will be agreed with you at the outset. These charges are as follows:

Value of investment	HWM Charge pa
Up to £200,000	1 . 00 %
£200,001 to £2,000,000	0 . 75 %
£2,000,000 and above	0 . 50 %

The myth of ‘free’ advice

In the past, many individuals received financial advice and were never presented with an invoice for it. This gave rise to a misconception that financial advice could be free. However, financial advice has never been free, from any source. Those advisers who did not appear to charge their customers simply received payment via commission from product providers and it was the customers who paid for this commission, through increased charges. In most cases, customers who preferred not to pay an up-front fee ended up paying considerably more for their advice over the longer term.