How we are paid
At AFH we only advise clients who are interested in developing a long-term relationship with an adviser. Our clients become friends and that is the way we like to work. Our emphasis is on service and not the one off sale of a financial product. We therefore do not offer an execution only or discount broker service.
The AFH Marketing Group has other specialist companies and professionals who, with prior agreement, may be introduced to our clients to ensure a coherent strategy. In all cases, we will agree with you whether you pay them or us a fee, or we are paid out of the cost of any financial product you buy (commission). We will always tell you about any commission we earn, and it will be taken into account in working out our fee. If you have professional adviser relationships in place we are happy to work with them on your behalf.
Commission is paid to an IFA firm by a provider, usually an insurance company or an investment house for the successful placing of business. The commission is included within the providers normal product charges, so there is nothing you need to pay us in addition. The amount of commission is based on a percentage of the premiums payable or sums invested.
Fees will usually be based on time spent and evaluated at a rate per hour calculated to recover our costs. Fees attract an additional VAT charge whereas commissions, under current legislation, do not. We will always tell you about any commission we earn, and it will be taken into account in working out our fee.
Whether we take our remuneration by way of commission or fees will be a matter of discussion and agreement, and no charges for fees will be made without prior notification in writing.
Your home may be repossessed if you do not keep up repayments on your mortgage.
