FORWARD FINANCIAL PLANNING LTD
Assessing Suitability To enable us to act in your best interests we assess suitability as set out below.
Mediation Period You are our advised client for a mediation period of 12 months commencing when we both sign this agreement.
Bundled Package Our personal recommendation of the total services or products which together are suitable to you.
Guarantee Our guarantee is that for the "Mediation Period" the "Bundled Package" we recommend will be suitable to your level of knowledge and experience, suitable to your financial situation including your ability to bear loss, suitable to your investment objectives including risk tolerance.
Survey We establish by means of "cash flow modelling" what buy/sells are required to create your "Bundled Package" and what would need to happen if you are to achieve your personal life style objectives including capital/income protection in the event of death or long term care.
Restricted Advice Before you invest we provide Key Information on each component in a manner prescribed by the regulator.Our advice is restricted to
Conflict of Interest We do not receive any financial incentive from any investment provider we recommend. We waive commission on long term care or life assurance recommended which normally should reduce your premium.
Reducing Risk As there is no guarantee that you will receive your money back from investment companies we spread the risk over a number of them. We classify them as "Not insured" and also research products which are "insured" by the Financial Services Compensation scheme; Bank and Building Society deposits limit 100% of £85,000, Guaranteed Annuity, Life Assurance, no limit of protection, or "Insured " by UK Treasury; National Savings and UK Treasury.
Attitude to Risk. The investment performance of the "Bundled Package" we recommend is likely to be different to the components taken seperately because the "Not insured" components are likely at times to outperform the "Insured" components but at other times the "Not insured" components are likely to underperform the "Insured" components.During periods of underperformance of "Uninsured funds" you may not be able to access your money from these components or if you can only at considerable loss. The periods of underperformance can extend into numbers of years. In extreme cases there can be a total loss of your capital. The ratio of "Insured" to "Not insured" products in your "Bundled Package" we call a manifestation of your "Attitude to Risk" We measure your risk tolerance by providing a table in percentage terms, pictorially, and in money terms to give you a factual presentation of your "Attitude to Risk." Please refer to www.forwardfinancial.org sidebar "manifestation of risk demo" This tool aims to show how the variations between "Insured" and "Not insured" can increase or reduce potential loss or gain to your capital. When you have decided on how you wish your attitude to risk to be manifested we will carry out a "Capacity for loss" testing of your ability to bear losses by simulating a market crash, showing you the possible impact to your "Cash flow." We are responsible to be clear on your knowledge and experience of uninsured products.Taking account of your knowledge and experience and the outcome of our test we will advise you if we believe a different manifestation of your attitude to risk is more appropriate.
Tax We advise you how to hold our recommended investments in Pensions,or ISAs to reduce your income tax, or in Trust/life assurance products for your grandchildrens' education or Inheritance tax planning. We advise when you can benefit from your tax free capital gains allowance.
Pension Transfers We are authorised to advise on pension transfers from final salary schemes to personal pensions, but at current levels of protection from the "Pension Protection Compensation Fund" our view is that a transfer from a final salary scheme is only likely to be appropriate where the transfer exceeds £1M.
Suitability Confirmation Following your advice meeting we will issue minutes including an outline of the buy/sell/hold advice given, and your "Suitability Report" -how the recommendations provide a suitable "Bundled Package"
Execution After you have received your suitability confirmation you are required to confirm that we may proceed with our advice on the buy/sells/hold using one of a number of "administration platforms." You should only instruct us to proceed if you understand and are comfortable with how your attitude to risk is manifested in the ratio of insured /uninsured capital in our recommended "Bundled Package"
Record of Suitability analysis. Once all buy/sell instructions have been executed we prepare a written record of our "suitability analysis", and the impact on your "cash flow" based on the assumptions agreed for "benchmarking" - see below.This is retained for six years and is available on request.
On line viewing We will organise with an investment platform that you have internet online viewing of all investments administered by the platform and that you are issued with a quarterly statement.
Depreciation Despite various requests our back office does not report if the overall value of your bundled package has depreciated by more than 10% in the previous 3 months, and we are therefore taking steps with an alternative provider to provide what is a mandatory requirement. Until this is resolved we are asking clients to go online monthly to review and if any difficulty contact us and we will prepare and issue a statement.
Annual Advice meeting At the end of each "Mediation Period" you are invited to your annual advice meeting and thereby renew your "Advised Status" for a further mediation period of one year.
Benchmark At your annual advice meeting we will provide an updated valuation of your "Bundled Package".Your cash flow projection provided after the previous advice meeting provides a benchmark against which the valuation can be compared.
Update your goals and needs. At your annual advice meeting we advise you on buys/sells/hold. If these are executed you retain our guarantee that your "Bundled Package" remains appropriate for a further mediation period of one year.
Default In addition to the compensation schemes above, in the event Forward Financial Planning Ltd was in default the firm is covered by the Financial Services Compensation Scheme to a limit of £50,000 per employee.
Cost payable to Forward Financial Planning Ltd
Initial Up to 3% of the funds on which you require advice depending on our estimate of the time and complexity.Always agreed before you sign the agreement, always subject to a minimum of £395
Ongoing The greater of £150 per month or 0.08% per month of the "Bundled Package".
At the end of each twelve month mediation period we bill you 0.96% of the "Bundled Package" at that time less the above £150 per month retainer or any other payments received, if the portfolio is under £180,000 we waive the 0.96% charge.
Please see tool below to inform you of estimated total charges, for your "Bundled Package".
If you decline to attend your advice meeting you cease to be advised and become unadvised.We will not provide any advice until a fresh survey is made and charged for as above.
As an unadvised client the scope of our service is limited to providing access to our online guidance service, valuations annually or online, and to execute specific buy/sell instructions you provide without a requirement to assess if the transaction is appropriate.
Cost payable to Forward Financial Planning Ltd
In addition to the above you will remain liable for any previously agreed fees to administrators or managers.
Where you seek to buy/sell direct the adminstrators may refuse to act or make an additional charge.
Should you wish to complain you can do this by telephone (02891826767)
or in writing to Forward Financial Planning Ltd, 9 Golden Glen Road, Newtownards, BT23 4YT
The Financial Ombudsman Service provides a free, independent service for customers to solve disputes with financial firms. If you are not satisfied with our final response about any complaint you may have, or if eight weeks have passed since you first contacted us about your concerns, you can ask the Financial Ombudsman Service to review your complaint.
You or we may terminate this agreement at any time.
**After termination you will be liable to pay £40 per item of copy correspondence handled on your behalf.
*If in future you do not wish to be contacted by post, e-mail or telephone you may notify us in writing at the address shown above.
I/We* have read, understand and agree to the terms by which a "Bundled Package" is to be provided to me/us* as set out under this Client Agreement
I/We agree to pay any amounts due within 30 days of the date of the invoice or other notification.
It has been pointed out to me that where my portfolio includes any leveraged components that FFP will not report any depreciation of 10% or more of the component in any three month period.
To confirm agreement please sign and date below.
NOTE 1 The purpose of the above estimate is to illustrate the total cost of the "Bundled Package" we have recommended for you.We have estimated costs for each component/investment firm/product we have recommended, plus the cost of the administrator plus our costs.
Please note that "insured" products do not provide a charge to the investor but normally add a margin above deposit rate in calculating the cost to their "borrower" - in effect the charge is paid by the borrower. This means that in carrying out our calculation of total costs the more "Insured" products are included the lower the charges will appear as a proportion of the "Bundled package"
Please also note You have the right to hold each investment directly so avoiding the administrator's charges and ours
Column 2 assumes your funds under our influence have grown by 7% after 1 year
Column 3 assumes your funds under our influence have lost 7% in value after 1 year
These are not maximum amounts, the growth or loss may be more than 7%. If an investment falls more than 10% in a quarter there is an obligation to inform you
Note 2 Please add to the above estimate:
Note 3 At least once per year the regulatory rules require each investment provider we have included as a component to provide you with the actual costs to empower you to check against our estimate.Should you have concerns that our estimate was too low please draw to our attention as we seek to be as accurate as possible and would welcome the opportunity to check through both our sources and our calculations if you had concerns.