SERVICE & COSTS DISCLOSURE CLIENT AGREEMENT  

 INVESTMENT SERVICES 

Accudo Investments Ltd are Independent Financial Advisers and are permitted to advise on and arrange deals in investments.  With regard to investments which we have arranged for you, these will be kept under review in line with the level of service agreed.   Additionally, we may contact you in the future by means of an unsolicited promotion (i.e. where you had not expressly requested it) should we wish to contact you to discuss the relative merits of an investment or service which we feel may be of interest to you.  Our permitted business is advising and arranging investments, pension transfers, insurance and mortgages. 

Accudo Investments Ltd does not handle clients’ money. We never accept a cheque made payable to us or handle cash (unless it is payment in settlement of charges or disbursements for which we have sent you an invoice). 

REGULATORY STATUS

Accudo Investments Ltd, 89 St Ronans Road, Southsea, Hants, PO4 0PR, FCA Number is 432722.  The Financial Conduct Authority can be contacted at the following address: 25 The North Colonnade, Canary Wharf, London E14 5HS. You can check this on the FCA’s Register by visiting the FCA’s website www.fca.gov.uk/register or by contacting the FCA on 0845 606 1234 

CLIENT CATEGORISATION

In providing investment services to you, we will categorise you as a retail client. The type of client category will determine the level of protections afforded to you under the regulatory system. As a retail client the regulatory protections available to you are determined by this category and will be the highest available.  

CONFLICT OF INTERESTS

Accudo Investments Ltd offers levels of advice in accordance with that disclosed to you in this document.  Occasions may arise where we or one of our other clients have some form of interest in business being transacted for you. If this happens or we become aware that our interests or those of one of our other clients conflict with your interests, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment. 

TERMINATION OF AUTHORITY

You or we may terminate our authority to act on your behalf at any time, without penalty. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated, which will be completed according to the Service & Cost Client Agreement unless otherwise agreed in writing. You will be liable to pay for any transactions made or carried out prior to termination and any fees which may be outstanding. 

RIGHT TO WITHDRAW

On certain products cancellation rights will apply, these will be sent to you by the relevant product providers. 

CLIENTS RISK

You are advised that because investments can fall as well as rise, you may not get back the full amount invested. Past performance is not a guide to future performance. 

ACCOUNTING TO YOU

Unless in exceptional circumstances, we will confirm to you in writing the basis or our reason for recommending the transaction executed on your behalf. We will also make arrangements for all your investments to be registered in your name unless you first instruct us otherwise in writing. We will forward to you all documents showing ownership of your investments as soon as practicable after we receive them; where a number of documents relating to a series of transactions is involved, we will normally hold each document until the series is complete and then forward them to you. 

INVESTMENT OBJECTIVES & RESTRICTIONS

Following the issue of this document, any subsequent advice or recommendation offered to you will be based on your stated investment objectives, acceptable level of risk and any restrictions you wish to place on the type of investments or policies you are willing to consider. Details of your stated investment objectives will be identified during our discussions with you and confirmed in the suitability report that we will issue to you to confirm our recommendation. Unless confirmed in writing, to the contrary, we will assume that you do not wish to place any restrictions on the advice we give you. 

GENERAL DATA PROTECTION REGULATION STATEMENT

The information you have provided is subject to the Data Protection Act 1998 (the “Act”) and updated to take account of the General Data Protection Regulation first established April 2016.   By signing this document you consent to us or any company associated with us processing, both manually and by electronic means, your personal data for the purposes of providing advice, administration and management. “Processing” includes obtaining, recording or holding information or data, transferring it to other companies associated with us, product providers, the FCA or any other statutory, governmental or regulatory body for legitimate purposes including, where relevant, to solicitors and/or other debt collection agencies for debt collection purposes and carrying out operations on the information or data. We may also contact you or pass your details to other companies associated with us to contact you (including by telephone) with details of any other similar products, promotions, or for related marketing purposes in which we think you may be interested. The information provided may also contain sensitive personal data for the purposes of the Act, being information as to your physical or mental health or condition; the commission or alleged commission of any offence by you; any proceedings for an offence committed or alleged to have been committed by you, including the outcome or sentence in such proceedings; your political opinions, religious or similar beliefs, sexual life; or your membership of a Trade Union.   If at any time you wish us or any company associated with us to cease processing your personal data or sensitive personal data, or contacting you for marketing purposes, please contact The Data Protection Officer on 02392 811221 or in writing at 89 St Ronans Road,  Southsea, Hants, PO4 0PR. 

You may be assured that we and any company associated with us will treat all personal data and sensitive personal data as confidential and will not process it other than for  legitimate purposes. Steps will be taken to ensure that the information is accurate, kept up  to date and not kept for longer than is necessary. Measures will also be taken to safeguard against unauthorised or unlawful processing and accidental loss or destruction or damage to the data.   Subject to certain exceptions, you are entitled to have access to your personal and sensitive personal data held by us, this will be provided to you free of charge within 30 days of your request.  

 

WHAT TO DO IF YOU HAVE A COMPLAINT

If you wish to register a complaint, please contact us: In writing: Write to Mrs Claire Novakovic , Accudo Investments Ltd, 89 St Ronans Road, Southsea, Hants, PO4 0PR.   By telephone: Telephone: 02392 811211/2 If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service. 

 

Are we covered by the Financial Services Compensation Scheme (FSCS)? We are covered by the FSCS.  You may be entitled to compensation from the scheme if we cannot meet our obligations.  This depends on the type of business and the circumstances of the claim. 

Investment:- £85,000 per person per firm (for claims against firms declared in default from 1 April 2019).          

Insurance:- 100% of the claim with no upper limit. Compulsory insurance is protected in full. 

Mortgages:- £85,000 per person per firm (for claims against firms declared in default from 1 April 2019).          Further information about compensation scheme arrangements is available from the FSCS. 

SERVICES & COSTS

The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services.  This document is designed by the FCA to be given to customers considering buying certain financial products.  You need to read this important document.  It explains the service you are being offered and how you will pay for it.

INVESTMENT SERVICES 

1. Type of Advice

Our advice is independent, based on a comprehensive and fair analysis of the relevant market and is unbiased and unrestricted. 

2. Level of Service and Costs

You will pay for our services via an adviser charging structure.  We have a number of adviser charging structures which are set out below.  The charges are based on the level of service offered.   Some providers use a “sale for regular payment.”  This is an agreement that allows for some of your investments to pay for any fees, charges or regular withdrawals.  It will only be used if you don’t have enough money in your cash account to meet these payments.  By signing this agreement, you are agreeing for a sale for regular payment if the cash in any of your respective accounts is insufficient to meet ongoing charges. 

SECTION. A.      INVESTMENT AND PENSIONS –  ADVISER CHARGING OPTIONS

Please note that all percentage-based adviser charges (both initial and annual), only become payable if recommendations are accepted.  If we agree to work on an hourly rate basis, we will present you with a fee agreement showing the estimate of the hours to complete and the amount payable will be due on acceptance of this agreement. 

 

1. Gold Service – £300K+ (Available to clients with £300K+ Portfolios) and includes:- 

   • Initial research

 • Risk profiling assessment                                                                                             

• Portfolio construction (including asset allocation and the creation of a bespoke portfolio of funds)                                                                                                               

• Initial advice 

• Full ongoing monitoring 

• Two reviews per annum 

• Ad-hoc reviews if required                                                                                     

ADVISER CHARGES                                            Tick here to select this option      

 Initial                                      AMC                      

1% or hourly rate                    1% for first £500K                                                                 

                                                  0.5% for balance over & above £500K 

 

For example a client investing £1,000,000 on our Gold Service would pay £10,000 initial charge and the annual management charge on a portfolio of £1,000,000 would be £7,500 per annum.  This annual fee will increase if the fund value grows.  It is difficult to provide an hourly rate example for an investment of £1,000,000 due to the specific nature of each client’s proposed investment (i.e. type of tax wrapper, tax status of clients/number of investment holders, client objectives etc).  If a client wishes to transact business on an hourly rate basis we need to know this immediately after the first appointment at which point a fee agreement will be provided showing an estimate of the hours to transact this business. Although this is an estimate, the amount charged will be as per the fee agreement regardless of the actual time taken.  As a guide we anticipate that an investment of £1,000,000 will take at a minimum 33 hours of adviser time to complete and the initial charge would be approximately £8,250.        

2.   Wealth Management Service – £100K+ (Available to clients with £100K+ portfolios) and includes:- 

• Initial research 

• Risk profiling assessment 

• Portfolio construction (including asset allocation and the creation of a bespoke portfolio of funds) 

• Initial advice 

• Full ongoing monitoring 

• One annual review per year 

• Ad-hoc reviews if required         

ADVISER CHARGES                                           Tick here to select this option       

Initial                                         AMC                      

2% or hourly rate                       0.75%           

For example a client investing £100,000 on our Wealth Management Service would pay £2,000 initial charge and the annual management charge on a portfolio of £100,000 would be £750 per annum.  This annual fee will increase if the fund value grows.  It is difficult to provide an hourly rate example for an investment of £100,000 due to the specific nature of each client’s proposed investment (i.e. type of tax wrapper, tax status of clients/number of investment holders, client objectives etc).  If a client wishes to transact business on an hourly rate basis we need to know this immediately after the first appointment at which point a fee agreement will be provided showing an estimate of the hours to transact this business. Although this is an estimate, the amount charged will be as per the fee agreement regardless of the actual time taken.  As a guide we anticipate that an investment of £100,000 will take at a minimum 15 hours of adviser time to complete and the initial charge would be approximately £3,750. 

 

3. Asset Builder Service includes:- 

 

• Initial research 

• Risk profiling assessment 

• Portfolio construction (including asset allocation and the creation of a bespoke Portfolio of funds) 

• Initial advice 

• Ongoing monitoring of all investments

• Ad-hoc fund switch recommendations when necessary

• No annual review.       

ADVISER CHARGES                                        Tick here to select this option           

Initial                                             AMC                         

3% or hourly rate                        0.75%  

 

For example a client investing £20,000 on our Wealth Management Service would pay £600 initial charge and the annual management charge on a portfolio of £20,000 would be £150 per annum.  This annual fee will increase if the fund value grows.  It is difficult to provide an hourly rate example for an investment of £20,000 due to the specific nature of each client’s proposed investment (i.e. type of tax wrapper, tax status of clients/number of investment holders, client objectives etc).  If a client wishes to transact business on an hourly rate basis we need to know this immediately after the first appointment at which point a fee agreement will be provided showing an estimate of the hours to transact this business. Although this is an estimate, the amount charged will be as per the fee agreement regardless of the actual time taken.  As a guide we anticipate that an investment of £20,000 will take at a minimum 6 hours of adviser time to complete and the initial charge would be approximately £1,500. 

 

Transactional Service includes:-      

 

• Initial research

 • Risk profiling assessment 

• Portfolio construction (including asset allocation and the creation of a bespoke portfolio of funds) 

• Initial advice 

• No ongoing management 

• No ongoing monitoring of  investments 

• No annual review                                         

ADVISER CHARGES                                             Tick here to select this option     

Initial                                              AMC                   

5% or hourly rate                          Zero  

 

For example a client investing £20,000 on our Transactional Service would pay £1,000  initial charge and the annual management charge would be zero.  .  It is difficult to provide an hourly rate example for an investment of £20,000 due to the specific nature of each client’s proposed investment (i.e. type of tax wrapper, tax status of clients/number of investment holders, client objectives etc).  If a client wishes to transact business on an hourly rate basis we need to know this immediately after the first appointment at which point a fee agreement will be provided showing an estimate of the hours to transact this business. Although this is an estimate, the amount charged will be as per the fee agreement regardless of the actual time taken.  As a guide we anticipate that an investment of £20,000 will take at a minimum 6 hours of adviser time to complete and the initial charge would be approximately £1,500. 

 

Actual Hourly Rate 

Director/Financial Adviser                      £250 

Administrator                                           £40 

 

Hourly Rate Service will include full itemized quotations and invoices.  The time taken to prepare these will also be charged for.  

 

Initial Charges on regular Premium Business 

Pensions

 For  regular premium business (for example £160 net/£200 gross per month paid into a pension with the intention that this will continue for a period in excess of one year), we will take 20% of the first year’s premium and this will be spread over a period of 12 months.  For example in the first year of the contract £200 gross will be paid in and £40 per month will be paid to us for the first 12 months, thereafter no initial charges will apply.  This charge will be paid monthly by the product provider.  Alternatively you can pay the 20% charge directly, in this example the charge would be £480 (i.e. 20% of the first year’s premium of £2,400), thereafter no further initial charges apply to the contract., unless you decide to increase the monthly premium, in which case 20% of the increase in the premium over the first year will apply, e.g. if you were to increase the premium from £200 gross to £250 gross, the increase is £50 per month, therefore the increase over 1 year is £600 and a one off charge of 20% of this will apply i.e. £120, spread over 12 month which is £10 per month over 1 year. 

 

Alternatively you can elect to pay on an hourly basis, in which case we estimate that setting up a new pension will take approximately 4 hours adviser time and 4 hours administrator time and the cost will be approximately £1,160. 

 

Investments

For regular premium business which is transacted on a year to year basis we will levy charges at the start of each year (if the product provider cannot facilitate monthly payment), for example if you wish to save £200 into an ISA on a monthly basis, our usual charges are 2% i.e. £4 per month.  At the current time many product providers do not facilitate this being levied on a monthly basis and therefore we will invoice you directly for 1 year’s worth of initial charges i.e. £48 at the start of the contract and at yearly intervals as long as the premium continues. This has the same effect as investing a lump sum of £2,400 at the start of each year. 

 

Alternatively you can elect to pay on an hourly basis, in which case we estimate that setting up a new regular payment savings vehicle will take approximately 4 hours adviser time and 4 hours administrator time and the cost will be approximately £1,160. 

 

General Fixed Project Fees 

 

3 Part Pension Analysis Report 

 

In depth analysis of up to 2 schemes (thereafter £250 per additional scheme, this reduction in cost per scheme reflects the fact that part of the initial work has been covered by researching and presenting information when looking at the first 2 schemes). 

 

Further information regarding what exactly is covered in the report is contained in a separate document entitled 3 Part Pension Analysis Report.    £950 

 

 

Flexi Access Drawdown advice (New Clients) 

(For short term income drawdown period i.e. less than 3 years) 

 

Initial Charge 1.5% (with £500 minimum) 

To establish the withdrawal schedule including bespoke tax calculations and to administer appropriate forms as well as producing an appropriate investment portfolio where applicable. 

 

Annual management charge 0.75% plus £250 annual flat rate fee  

To manage the investment portfolio and to re-confirm withdrawal amount and to administer appropriate forms. 

 

 

Flexi Access Drawdown advice (Existing Clients) 

 

£500 flat rate initial fee  

To establish the withdrawal schedule including bespoke tax calculations and to administer appropriate forms. 

 

£250 annual flat rate fee  

To re-confirm withdrawal amount and to administer appropriate forms. 

 

 

Analysis of Retirement Options 

 

Final Salary Schemes (Without consideration of a transfer out)   £850 

 

Final Salary Scheme analysis including a transfer value analysis report and a full suitability letter to include the findings of the TVC and incorporation of the clients objectives, attitude to risk and individual circumstances as well as information regarding all the options available (1 scheme only)      £1,000 

 

Defined Contribution Occupational Scheme or Personal Pension Plan  £750 

 

Further information regarding what exactly is covered in these reports is contained in a separate document entitled Retirement Options Report.  

 

Occupational Pension Investment Analysis 

Analysis of available investment funds within an occupational pension scheme, including ascertaining attitude to risk, appropriate asset allocation and recommendation of specific funds.  Any applicable annual adviser charges to be negotiated separately.                  £1000 

 

Regular savings ISA or pension 

Setting up a regular savings ISA or pension with premiums of less than £100 gross per month.         £200 

 

Auto-enrolment Scheme 

Please ask to see our separate fee tariff for auto-enrolment work. 

 

How the Adviser Charges above are paid to us 

Normally the Adviser Charges described in Section 2 above are deducted from your investment premium and paid to us by the product provider.  If you would prefer to pay us separately and therefore have the gross amount invested, you can pay our Initial Adviser Charge by a separate cheque. 

 

 

SECTION. B.    INSURANCE AND MORTGAGE SERVICES 

 

We will continue to be paid commission for the sale of insurance and mortgage based products.  The following rates and fees apply. 

Insurance: (all examples based on a premium of £25 per month) 

Life and Critical Illness Cover policies and Income Protection: 180% of the first 12 payments, then 2.5% of payments from month 49. Based on the above example £540 followed by £0.63 of all payments from month 49. 

 

Building & Contents Cover: Up to 30% of the first 12 payments. Based on the above example £90. 

 

Mortgages: 

 

A fee of £350 is charged on commencement of the application process.  We will be paid commission on completion by the lender. 

 

If a client decides to make more than one mortgage application simultaneously for the same property, i.e. they apply for one particular product and then simultaneously decide to apply for an alternative product with another provider on the same property, for example because a superior product has come to the market place during the intervening period, we will make a £350 charge for all subsequent applications made.  This fee will be charged on commencement of each full subsequent application.  

 

A fee of 0.75% for introducing and facilitating the arrangement of specialist (nonstandard) mortgage and/or bridging finance (international mortgages, portfolio lending, commercial lending, bridging finance, private banking lending etc).  We will refund any commission payable by the product provider up to this level. 

 

You will receive a key facts illustration when considering a particular mortgage which will tell you about any fees relating to it. 

 

CLIENTS CONSENT 

I understand and consent to the above terms and I hereby authorise the transfer of information, as described above on a confidential basis when warranted between such third parties. I agree that the Services & Costs Client Agreement will come into effect from the date of acceptance of this agreement.  I wish to proceed with the level of service as indicated in Section A and/or the terms indicated in section B. 

 

Client Name(s) 

 

Client signature(s) 

 

Date of signature(s)