FORWARD FINANCIAL PLANNING LTD

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Client Agreement

Client Agreement

GUIDANCEThu. May 24th, 2018

Access to www.my-money.me guidance services;

  • Guidance provides information, guidance does not provide a personal recommendation of suitability.
  • To enable us to act in your best interests you must become an "Advised client"
  • Guidance provides an online library,monthly information updates to your email,comprehensive annual budget report.
  • Cost £50 payable by standing order annually in advance. Tel 02891826767 to set up service.
  • Service complimentary for advised and non advised clients.

ADVISED CLIENT

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

  • (i)specialist investment companies listed on the Stock Exchange in which we enable you to buy/sell shares and thereby achieve a spread of portfolios that will be managed for you.This type of company includes "Investment Trusts" and can provide excellent returns to long term investors.
  • (ii)"Open ended investment companies."
  • (iii)Bank/Building Society,Guaranteed Annuity products(including long term care)life assurance products,National savings and UK Treasury "Dated stock"
  • We do not research exchange traded funds, structured products, contracts for difference,equity release or any other type of mortgages.

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.

Disclosure We have a small number of shares in "Transact" one of the administration services we use. Should we become aware of any other conflict of interest we will advise you in writing.

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 Each month we will report to you if the overall value of your bundled package has depreciated by more than 10% in the previous 3 months, but this report will not highlight if an individual leveraged financial component falls by 10% 

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".

 

Reduced Scope of services to UNADVISED Clients

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.

  • You will therefore cease to benefit from the protection provided from our guarantee that your "Bundled Package" remains appropriate
  • You will also not be informed if managers we previously recommended are removed from our panel and may no longer be suitable components of your "Bundled Package."

Cost payable to Forward Financial Planning Ltd

  • £50 per month
  • plus £40 per execution order that we accept to buy/ sell on a non advised  "execution only " basis.

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. 

 

Complaints

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.

 

 

 

Termination:

You or we may terminate this agreement at any time.

  • Notice of termination must be given in writing.
  • **Where the agreement is terminated by you, the full Annual Mediation Fee will become due, and you will be liable to pay within 14 days any amount outstanding from the date of signing, or the start of any subsequent mediation period which commences with the annual advice meeting.

**After termination you will be liable to pay £40 per item of copy correspondence handled on your behalf.

Client Money:

  • As we NEVER hold client money all investment cheques must be made payable to the relevant investment/insurance company.

Information held about you:

  • Forward Financial Planning Ltd is a data controller within the terms of the Data Protection Act 1998 (DPA 98) and has been registered as such with the Information Commissioner, in compliance with our obligations under the same legislation. All data shall be processed fairly and lawfully and in accordance with DPA 98.
  • We may obtain, use, and disclose your personal data to discharge the services agreed, and to fulfil our legal and regulatory responsibilities.
  • Information held about you may be on computer and/or paper files.
  • You have a right of access to your personal data that we hold about you. Under the relevant legislation our data protection registration number is Z4839152.
  • We keep records of all your investment transactions for at least six years.
  • We reserve the right to give you copies of your records and retain originals.
  • We make a charge to copy your files based on time and materials.

If you do not wish to be contacted by post, e-mail or telephone you may notify us in writing at the address shown above.

This Agreement shall be subject to the laws of Northern Ireland.

  • We may amend our terms without your consent, subject to giving you 10 working days' notice in writing to your last known address.
  • We will seek your agreement prior to providing any service under the amended terms.

 

Confirmation that you have accepted the terms of this client agreement.

 

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.

 

 

 

 

Signature(s)___________________________________________________________________________________________

 

Date           ________________________

 

Estimate of your total cost of ownership using this client agreement

Estimated funds under influence
£
£ (+7%)
£ (-7%)
as at (insert todays date DD/MM/YYYY)
Our Annual Meditation Fee
(ADVISED Status @0.96%)
or if less than £188,000 12 monthly payments of £150.00
£
£
£

(NON-ADVISED status
@ £50.00 per month)

£600

£600

£600

Estimated Broker Dealing Charges (assuming deals at £12.50 per deal)

£75.00

£75.00

£75.00

Estimated Annual Fund Managers Charges(assuming 0.75% average charge) ability to change
%
£
£
£
Estimated Annual Custodian/Trustee Charges(insert est annual percentage charge)
%
£
£
£
Assuming
accounts
at quarterly charge (£18.75) insert number of accounts
£
£
£
Pension annual charge for
accounts (186)+VAT/account
£
£
£
Total in Money Terms
(Client on ADVISED Status)
£
£
£
Total as a Percentage
%
%
%
Total in Money Terms (Client on NON-ADVISED Status no deals)
£
£
£
Total as a Percentage
%
%
%

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:

  • Survey charge as agreed
  • Stamp duty on the purchase of investment trusts at 0.5% at the time of investment
  • Cost of Legal Entity Identifier, initial £115 (ex VAT), annual £70 (ex VAT) required by companies and trusts
  • Where you wish us to travel out of office we will agree additional costs including air fares if applicable.
  • some providers will make an initial pension charge typically say £155+VAT
  • some providers will make a transfer out charge estimated at say £100 plus VAT

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.