This agreement sets out the terms under which our services are to be provided, including details of the specific services and a summary of our charges for those services.
HJS Financial Planning was directly registered with our regulator, the Financial Conduct Authority on 22 December 2016.
Meet our team
Iain McCulloch – MD and Financial Adviser
Peter Winter – Chartered Financial Planner
Hannah Donoghue – Financial Planner
Stewart Davidson – Financial Adviser
Gary Walker – Financial Adviser
Between them our advisory team have over 50 years of experience in the Financial Services industry.
Under rules set by our industry regulator, the Financial Conduct Authority (FCA), all financial advisers must be qualified to at least ‘Level 4’. That’s broadly equivalent to the first year of a degree and covers topics including personal tax, pensions and retirement planning and investment principles and risk. There are also master’s and PhD equivalents above that, along specific qualifications for areas such as mortgages, pension transfers and equity release and we have advisers who are qualified in these specialist areas.
Our Head Office is based in Southampton and we are a firm of Independent Financial Advisers focused on helping you understand and plan for your financial future, providing advice across the south coast in cities as diverse as Reading, Bristol and Milton Keynes.
We are also able to act on your behalf in advising you on investments, non-investment insurance contracts and mortgages (dealt with under a separate Terms of Business). We offer you an initial discussion (without charge) during which we will describe our services more fully and explain the payment options.
The areas we can advise on include
We do not provide advice on individual share holdings, Options, Futures and Derivatives.
Our initial consultation is normally free of charge and following that initial discussion, should you decide to go ahead, there will be a cost for our advice and services.
If you have a question or concern about any aspect of our services, please contact us at:
Telephone: 02380 920128
Email: [email protected]
In writing to: HJS Financial Planning, 12 – 14 Carlton Place, Southampton, SO15 2EA.
Our Obligation to you
- Before providing advice, we’ll assess your needs, consider your financial objectives and assess your attitude to any risks that may be involved. If you don’t want to discuss a particular area of financial planning and that area should not form part of the advice given, we can exclude it, if you instruct us to do so. This might of course have a bearing on the advice that might have been given.
- Before making any recommendations, we’ll carry out a suitability assessment so that we are able to act in your best interests.
- We’ll confirm any recommendations we make in writing (our suitability report) along with details of any special risks that may be associated with the products or investment strategies we’ve recommended.
- Where we agree to provide you with a service that includes an ongoing review of the suitability of the investments we have recommended, we’ll carry out this review at least annually. To do this we will need to make contact with you to assess whether the information we hold about you remains accurate and up to date. We’ll issue you with a report setting out the results of our assessment and, if relevant, any updated recommendations.
- Where we agree to provide you with an annual assessment (service level 4), we will write to you confirming our understanding of your circumstances, objectives and needs and confirm whether we are satisfied your current arrangements remain suitable, based on that information.
- It is therefore your responsibility to advise us of any changes to your circumstances, which could then result in the product/investment choice no longer being suitable for your needs and an alternative solution may be required.
- Please be aware that investments can fall, as well as rise, and that you may not get back the full amount invested. The price of investments we may recommend may depend on fluctuations in the financial markets, or other economic factors, which are outside our control. Past performance is not necessarily a guide to future performance.
- Specific warnings relevant to the investments, investment strategies or other products we arrange are provided in the relevant product literature provided.
This section sets out your obligations in agreeing to receive our services.
- Providing information about your circumstances
- Our advice will be based on the information that you give so it’s important that you provide us with accurate and up to date information when we request details about your circumstances and objectives.
This will allow us to provide you with suitable advice. If the information you provide is inaccurate or if you limit the information provided this could affect the suitability of the advice we give.
If it is later proven that our advice would have been different if we had been made aware of a fact or facts that had not been disclosed by you, we will not accept any liability for any loss as a result of that advice.
Providing information to your insurer
Your insurance / protection cover is based upon the information you provide to the insurance company.
Where you are buying insurance as an individual, this means that you must take ‘reasonable care’ to answer all questions asked by the insurer fully and accurately. This is explained in full within the provider literature
Investment Advice and Recommendations Scope
Any investment advice we provide will be based on your personal financial circumstances and objectives. We will confirm these and the reasons for any recommendation in our Suitability Report.
Aggregated costs and charges.
Before we provide you with our advice, we will add together all the costs and charges payable so that you are able to understand the overall costs of our services and recommendations. This is referred to as aggregated costs and charges information.’
If you have asked for any restrictions on the types of investment or the markets you wish to invest in, these will be confirmed in the Advice Report. We will always make it clear when products are not within the ‘regulated’ scope and advise you of your rights.
Legal and accounting advice
We are not qualified to provide legal or accounting advice or to prepare any legal or accounting documents. This means that the onus is on you to refer any point of law or accountancy that may arise during the course of discussions with us, to a solicitor or accountant.
- Where we send investment applications on your behalf to third parties (e.g. to put an investment into force), we’ll take all sufficient steps to ensure that we obtain the best possible result for you. This is referred to as ‘best execution’.
- We have a best execution policy which is available on request.
Conflict of interests
- Although we’ll always try to act in your best interests there may be situations where we or one of our other clients has some form of interest in the 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 own interests, we’ll write to you and ask for your consent to proceed before we carry out any business for you. We’ll also let you know the steps we’ll take to make sure you are treated fairly.
- We have a conflicts of interest policy which is available on request.
- We are obliged to put in place controls to prevent our business from being used for money laundering and other forms of financial crime.
- We’ll verify your identity before undertaking any business with you. To do this we may use electronic identity verification systems and we may conduct these checks from time to time throughout our relationship, not just at the beginning. The check may leave a ‘footprint’ on your credit file but it will not affect your credit rating.
Advice that we offer
Before providing advice, we will assess and consider your financial needs and objectives and assess your capacity for loss and attitude to risk. We will always recommend a full review of your circumstances unless you instruct us otherwise. You should understand that if we do not consider all your financial circumstances our advice will be limited to the area(s) you specify and as a result the advice could be different to that had we carried out a full review.
Once we have carried out a review, limited or full, we will carry out a suitability assessment so that we are able to act in your best interests. We will confirm any recommendation in writing (a Suitability Report), prior to any transaction taking place.
Within the Suitability Report we will advise you why we believe a product is suitable for your requirements, the risks, advantages and disadvantages involved and if there are any alternatives that should be considered.
The areas we will advise on are as follows:
Financial planning: It’s important to identify what you might want to achieve and how you can do this. We can help you to identify your goals and create a plan for your finances to help you achieve them.
Retirement planning: It’s important to know whether the money you are saving towards retirement will provide you with sufficient funds to meet your retirement objectives. We can work with you to proactively plan for your retirement and help you decide on the options available once at retirement.
Protection planning: Most of us want to protect the things that are important to us, our family, business and quality of life. Protection planning can help to provide peace of mind in the event of your income changing due to unexpected events. We can help you plan for the best way to protect you, your family or your business.
Mortgage advice and Equity Release: these products are covered under a separate term of business available on request.
Wills Trusts and Lasting Powers of Attorney: We are able to introduce you to a firm of solicitors who will complete and submit, where necessary, Wills and Lasting Powers of Attorney.
How your funds will be invested: We will utilize professional third-party providers to ensure your funds are professionally managed in line with your objectives, needs, Attitude to Risk and Capacity for loss.
The Advice Journey
Click the image to enlarge.
The Cost of our Services
No fee for Life Assurance, Critical Illness, Income Protection, Accident Sickness & Unemployment, Home Insurance, and Private Medical Insurance. We will be paid by commission from the company. If you cancel a plan during the initial fee-paying period, you will be required to repay any fees or commissions reclaimed by the provider.
You will receive a quotation which will tell you about any other fees relating to any particular insurance policy.
Our charges/fees will be VAT exempt as the work we provide for you only involves advice and/or preparing a report. There will be occasions when VAT may be applicable, but we will always tell you if you have to pay VAT before we undertake any work for you. Charges for the on-going service will not be liable to VAT (unless the initial service was liable to VAT) where both the initial and on-going services are part of the same package.
Investment and Pensions
Standard fees – where you wish to take advantage of our full advice process, or our on-going service options. These are shown by way of implementation (initial) and on-going service fees, and it is likely that no VAT is due on these fees.
|Ad hoc fees – where you do not wish to subscribe to an on-going service, or where you want specific advice or project work. This will be on an an agreed hourly or percentage basis.|
|Payment for our services will be on the basis of an agreed Advice Fee. We will discuss your payment options with you and answer any questions you have. No fee will be due until we have agreed the basis of that fee and how it will be paid along with the work to be carried out.|
This process only begins once we have your agreement on the arrangements to be put in place. This involves arranging investments or other products on your behalf, as required, and may extend to implementing a specific financial planning process, such as estate planning.
We will act as the intermediary between the product provider(s) and you with a view to arranging the purchase of the Retail Investment Products as we have agreed.
Fees for the design, production and implementation of a financial strategy are calculated as follows:
Lump Sum Investments and Single Premium Pensions (including Defined Benefit Transfers)
The fee is normally calculated according to the size of the transaction, as set out on pages nine and twelve.
Unless otherwise explained, the charges detailed on pages nine and twelve will cover the full advice process: including, understanding your current situation, objectives, attitude to risk, carrying out research to identify suitable solutions, documenting our recommendations and implementing the agreed solutions.
Where we discover an advice process is more complex, we will inform you of this and ask for your instruction as to whether you want us to review any such plans at an increased cost to be agreed at that time.
Advice Fee Options
- Percentage of Investment or Transfer amount.
- Agreed Fee
|When our work involves investing a lump sum of money, our charges are|
|Amount||Percentage||Example Amount||Actual Fee|
|Up to £200,000*||3%||£50,000||£1,500|
|The next £100,000*||2%||£300,000||£6,500|
*including existing holdings managed by HJS
2. Agreed fee
We can agree a fixed fee for the work that we carry out for you in advance.
For any other work our fee will be on an hourly rate basis, normally subject to a £1,000 minimum fee. Hourly rates are as follows:
- Pension Transfer Specialist: £500 per hour
- Director Adviser: £300 per hour
- Adviser: £200 per hour
- Para-Planner: £150 per hour
- Administrator: £100 per hour
This means that if a client were to go down the fee route rather than an agreed percentage charge for a Defined Benefit Pension Transfer the costs would be approximately:
Pension Transfer Specialist @ £500 per hour X 8 hours = £4,000
Para-Planner @ £150 per hour X 6 Hours = £900
Administrator @ £100 per hour X 6 Hours = £600
Total = £5,500
Please note this is neither a minimum or maximum amount and we will provide you with a quotation before undertaking any chargeable work. However, all fees are to be paid prior to work being carried out post initial meeting.
Please note; In the event we review a plan with Safeguarded Benefits or a Defined Benefit Scheme (Occupational Pension) and our recommendation is not to transfer, you will still be liable for the agreed fee.
For the sake of completeness please note we reserve the right to levy a minimum fee of £6,500 on all Safeguarded and Defined Benefit advice.
As there is a minimum amount of work involved with even relatively small sums to be invested, the percentage is typically higher (in value) for smaller investments, such as an ISA, a new pension plan or a pension switch with a value below £34,000.
This means that a single premium transaction (ISA/investment/Pension Switch/Transfer) with a value of £30,000 (under the above criteria) should cost £900 but due to our minimum charge criteria, will cost £1,000. Likewise, the minimum fee for a regular premium savings plan is also £1,000.
Paying our initial charges
Our charges are payable on completion of our work and must be settled within 28 business days. Payment can be made either by:
- Cheque, card or electronic transfer (we do not accept payments by cash).
- You may pay our charges via deductions from the financial product(s) that you might invest in, where the product/platform provider allows this.
Please note that if you choose to pay by deduction from a financial product this will reduce the amount left for investment and may have other consequences.
Paying our ad-hoc charges
Our charges are payable on completion of our work and must be settled within 28 business days. Payment can be made either by Cheque, card or electronic transfer (we do not accept payments by cash).
You may pay our charges via deductions from the financial product(s) that you might invest in, where the product/platform provider allows this. Please note that if you choose to pay by deduction from a financial product this will reduce the amount left for investment and may have other consequences.
All fees will be agreed before any work commences and where our charges are based on a % of your investments, the amount of our ongoing charges may increase as the size of your fund grows.
Where we agree to provide you with a service that includes an ongoing review of the suitability of the investments we have recommended, we’ll carry out this review as described overleaf unless agreed otherwise.
The cost of this service is 1% of the portfolio value and is typically deducted from the portfolio over a 12 month period on a monthly (1/12th) basis.
You can also pay this ongoing fee direct to HJS Financial Planning in a similar fashion to the initial fee referred to earlier in this document.
To complete a review for you, we will need to make contact with you to assess whether the information we hold about you remains accurate and up to date. We will issue you with a report setting out the results of our assessment and, if relevant, any updated recommendations.
We will make at least three attempts by different means to contact you, so it is important to keep us up to date with regard to any changes of contact details such as a change of address, email or telephone number.
We may, where appropriate, recommend holding some, or all, of your investments with a discretionary fund manager (DFM), a professional investment manager appointed to monitor your portfolio and make investment decisions on your behalf. In such cases we’ll explain the respective responsibilities of ourselves and the DFM in relation to your investments.
In some circumstances we may need to act as your ‘agent’ in relation to the part of your portfolio held with a DFM. This means that you won’t have a direct contractual relationship with the DFM and the DFM will instead treat our firm as its client. Before setting up this type of arrangement we’ll explain the implications to you.
Whilst our fund managers will deal with the day to day management of the funds and any switching deemed necessary as part of that process, we will also carry out internal quarterly reviews on the performance of our chosen fund manager.
Additionally, if we do not feel our chosen Fund Manager is acting in your best interests, we will recommend a change of that fund manager.
We will also provide you with an annual summary of charges levied through the year on your investments. This will generally be via the valuation issued by the provider.
If we do not get a response to our request for a meeting on two consecutive reviews, we will continue to write to you with a regular interim assessment to ensure we fulfil our ongoing service obligations. It is your obligation to ensure that we have an up to date Residential and Email address.
If you do not require ongoing service, you will be classed as a transactional client (Service Level 6) and there will be no ongoing costs levied by HJS Financial Planning. As a result of this you will be liable for any investment decisions and if you require advice at any time there will be a cost involved and we will have no obligation to provide any additional services.
What you get for your 1% and any additional costs
|Fund values||£400,000+||£250,000 – £399,999||£100,000- £249,999||£50,000 – £99,999||£0 – £49,999||N/A|
|Six monthly valuation||Y||£250|
|Cash Flow Modelling||Free||£500||£1,000||£1,000||£1,000||£2,000|
|Capital Gains Tax Planning||Free||£250||£250||£1,000||£1,000||£2,000|
|Bed and ISA*****||Free||£100||£150||£250||£250||£1,000|
In the event of your circumstances, objectives, needs or attitude to risk changing, you must tell us immediately as this may mean your existing plans/investment choices are no longer suitable.
*If a level 6 client requires a full review this will be at a minimum cost of £1,000, If a product is recommended, we will charge a fee of 3% minus the £1,000.
** Whilst we will offer a level 4 and level 5 client the option of a full review every year, this will only be free of charge every two years for a level 4 client and every three years for a level 5 client.
*** when funds are switched from an existing non-tax efficient investment to an ISA.
**** If we do not have your email address, or you have not registered for the HJS Client Portal, we cannot issue our newsletter.
***** Switch from a non tax efficient Collective Investment to an ISA.
Please note: any client drawing an income from a unitized investment will need an annual review in regard to sustainability and in some cases, this may incur an additional charge.
What does it cost?
With an ongoing service charge of 1% this means you will pay:
- £10 per £1,000 invested
- £100 per £10,000 invested
- £1,000 per £100,000 invested
What is an Interim Assessment?
We will issue a current valuation and a portfolio report including the effect of charges on the investment and the underlying investments. We will also confirm whether the product(s) remain suitable based on the information held on file. We will then call you to ensure you have received the report and to check if you would like a review in accordance with our service obligations for level 4 & 5 clients as detailed on page 12.
What is included in the Financial Review?
At a review we will: (this is not an exhaustive list)
- Assess personal circumstances
- Assess any changes to objectives and needs and how they affect you
- Re-assess Attitude to Risk and Capacity for Loss
- Review Investment holdings performance against objectives
- Discuss valuations and investment commentary
- Recommend changes to portfolios as and when necessary
- Discuss any other needs you may have
Any cash top up investments will be charged as described on the previous page, however any new switches or transfers will be charged at the normal rate as described on pages nine and twelve.
Please note that the fee is based on the plan value which means that although all clients within a particular service band are charged the same percentage, the actual cost may vary depending on that fund value.
There is a minimum ongoing servicing fee of £1,000 which can be deducted from your investments or paid direct by Standing Order.
Ending the Agreement
- We may terminate this agreement by giving you at least one month’s written notice.
- You may terminate this agreement at any time, without penalty. Notice of termination must be given in writing and will take effect from the date of receipt.
- Any transactions already initiated will be completed according to this agreement unless otherwise agreed in writing.
- You will be liable to pay for any services we have provided before cancellation and any outstanding fees, if applicable.
Ongoing Fees information
Each year you will receive confirmation of the total fees and costs you actually incurred during the previous period. This will normally be provided by the platform you are invested in, but it will also be covered within the portfolio report.
OTHER IMPORTANT INFORMATION
Our Regulator – The Financial Conduct Authority
HJS Financial Planning Limited is authorised and regulated by the Financial Conduct Authority (FCA), 12 Endeavour Square, Stratford, London, E20 1JN.
Our Financial Services Register number is 755721.
Our permitted business is advising on and arranging pensions, savings and investment products, non-investment insurance contracts and mortgages.
You can check this on the Financial Services Register by visiting the FCA’s website or by contacting the FCA on 0800 111 6768.
Unless we notify you in writing to the contrary, we will be treating you as a retail client. This means that you are afforded the highest level of protection under the regulatory system and should have the right to take any complaint to the Financial Ombudsman Service.
There are other classifications of customer that don’t have these rights. These are “professional” customers – such as listed companies, local authorities and larger partnerships or trusts and as such these clients do not have recourse to the FCA, Financial Ombudsman Service or the Financial Services Compensation Scheme.
If you are not happy with our Service
If you have a complaint about your Adviser or any financial advice you have received from your Adviser please contact us at: 12 – 14 Carlton Place, Southampton, SO15 23EA.
We will be happy to provide you with a summary of our internal procedures for handling complaints, this is available without charge upon request.
If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (e.g. if we arranged insurance or a regulated mortgage product) at:
The maximum claim limit with the Financial Ombudsman Service is £350,000.
Alternatively, where your complaint relates to products or services purchased online, or by other electronic means such as by email, you may refer your complaint to the online dispute resolution (ODR) platform at http://ec.europa.eu/odr.
Financial Services Compensation Scheme (FSCS) Current limits
The Financial Services Compensation Scheme (FSCS) is the UK’s statutory compensation fund for customers of authorized financial services firms who are unable to pay claims against them, usually because they have gone out of business.
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, i.e. it differs for investments, insurance, mortgages and bank accounts.
- Insurance: In the majority of cases, eligible claims relating to the advising and arranging of protection products are covered for 90% of the claim, without any upper limit.
- Investment: Eligible claims related to most types of investment business are covered up to 100% of the claim with a limit of £85,000 per person per firm.
Further information about compensation scheme arrangements is available from the FSCS, www.fscs.org.uk.
We do not handle or hold Client Money. We never handle cash and will only accept a cheque made payable to us in settlement of Advice or Service fees. Our preferred method of payment is via bank transfer.
If we receive a check for payment to a provider prior to a written recommendation being accepted, we are not liable for any movement in markets and potential loss due to none investment.
Other benefits we may receive
From time to time we may attend training events funded and /or delivered by product providers, fund managers and platforms. These events are designed to enhance our knowledge and ultimately therefore enhance the quality of service we provide to our clients.
Under the rules of our regulator, the FCA, as a firm providing independent advice, we are unable to accept or retain payments or benefits from other firms (e.g. product providers) as this would conflict with our independent status.
Further details are available on request.
Protecting your personal information
To provide our services properly we’ll need to collect information about your personal and financial circumstances. We take your privacy seriously and will only use your personal information to deliver our services.
Processing of your personal data is necessary for the performance of our contract for services with you. Generally, this is the lawful basis on which we intend to rely for the processing of your data. (Please see the reference to special categories of data below). Our policy is to gather and process only that personal data which is necessary for us to conduct our services appropriately with you.
We adopt a transparent approach to the processing of your personal data. Sometimes, we may need to pass your personal information to other organisations. If you apply to take out a financial product or service, we’ll need to pass certain personal details to the product or service provider.
We may engage the services of third-party providers of professional services in order to enhance the service we provide to you. These parties may also need to process your personal data in the performance of their contract with us.
Your personal information and sensitive category data may be transferred electronically (e.g. by email or over the internet) and we, or any relevant third party may contact you in the future y what we believe to be the most appropriate means of communication at that time (e.g. telephone/email/letter etc.)
The organisations to whom we may pass your data to also have their own obligations to deal with your data appropriately and securely in accordance with the relevant legislation
Sometimes a product or service may be administered from a country outside Europe. If this is the case that firm must put a contract in place to ensure that your data is adequately protected.
We will issue you with our Privacy Notice
This is a separate document which provides more information about the nature of our personal data processing activities and includes details of our retention and deletion policies as well as your rights of access to the personal information we hold about you.
As part of this agreement we’ll ask you to consent to the transfer of personal information in accordance with the protections outlined above.
Special categories of personal data
There are certain categories of personal data that are sensitive by nature. The categories include: data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership and data concerning health. Depending on the nature of the products and services that you engage us for we may need to obtain your sensitive personal data particularly in relation to health. Our policy is that should we require any special category of personal data we will only gather this with your explicit consent.
Consent – Sensitive Personal Data
The Primary basis on which we intend to process your personal data is for the performance of our contract with you. In the case where we need to process special category (sensitive) data as described above we require your consent by indicating your agreement on the separate Consent Form.
To enable us to facilitate our service to you we may also engage the services of third party providers of professional services in order to enhance the service we provide to you. These parties may also need to process your personal data in the performance of their contract with us. If you wish to know the names of these third parties, please contact us for further information.
If you are concerned about any aspect of our privacy arrangements, please speak to us.
Product Cancellation Rights
Full details of the products we recommend to you including, for example, the minimum duration of the product, information on your right to cancel or whether no right to cancel exists, and any other early termination rights and penalties, will be covered in the relevant product disclosure information you will receive before the conclusion of any contract.
In most cases you can exercise a right to cancel by withdrawing from the contract. In general terms, you will normally have a 30-day cancellation period for a life, protection, payment protection or pension policy and a 14-day cancellation period for all other policies.
Instructions for exercising the right to cancel, if applicable, will be contained in the relevant product disclosure information which will be provided to you.
If you cancel a single premium contract, you may be required to pay for any loss you might reasonably incur in cancelling it which is caused by market movements. This means that, in certain circumstances, you might not get back the full amount you invested if you cancel the policy.
Communicating with you:
- Our normal ways of communicating with you are by telephone, post, e-mail, SMS text message or in person.
- Our communications will be in English.
- We may ask you to confirm your instructions to us in writing as this helps to avoid any future misunderstandings.
Recording telephone calls:
- To ensure we carry out your instructions accurately and to help us to continually improve our service and in the interests of security, we may monitor and record your telephone communications or conversations with us.
- Copies of our telephone recordings will be available on request, for a period of 5 years after the recording was made.
- We will send confirmation of telephone requests for action by email to the email address held on file.
Updating this Terms of Business document
From time to time it may be necessary to amend the terms set out in this agreement where it’s not necessary to issue a new agreement. If this is the case, we’ll communicate any such change at least twenty-eight business days before they are due to take effect.
We will provide you with a new Terms of Business at your annual review. In addition to this HJS Financial Planning will maintain updated copies of this Terms of Business on our website: www.hjsfinancialplanning.co.uk.