Our FidUcia Service
It is important that you know what to expect in terms of the services we provide and that you understand our commitment to you in the provision of those services. We intend to be professional, clear and fair in our dealings with you, and will always ensure that any service or advice provided is in your best interests. This service is subject to a minimum investment of £750,000
Fiducia Service is a trading style of KRD Financial Advisers Ltd, 74 Worcester Road, Hagley, Stourbridge, West Midlands, DY9 0NJ which is authorised and regulated by the Financial Conduct Authority (FCA). Our Financial Services Registered number is 456629. Further information about KRD can be found on our website www.krdfa.com
We will meet with you face-to-face to capture important information about your current circumstances, your financial history, your aspirations, priorities and objectives in terms of your financial future. We will also discuss your attitude toward “investment risk” and your understanding of how such risks may affect you. The consultation will close with a summary of our findings and our suggested next steps toward a tailored, yet realistic, solution to your needs. There is no obligation to proceed at this stage and no costs will have been incurred.
Research and Analysis
Should you decide to proceed, further to our initial meeting, we will ask you to formalise your permission for us to commence chargeable work for you by signing this Agreement. At this stage, we will begin to undertake the process of thoroughly analysing your current position based on our extensive knowledge of financial markets whilst diligently researching potential solutions for your needs. Should we need to consult with any professional advisers or financial services providers with whom you have an agreement, we will ask for your express consent to do so.
When we have all the information we require, a full Financial Planning Report will be devised to paint a clear picture of your current position and outline a clear and thoroughly researched recommendation for the solution we believe to be in your best interests. We will arrange to meet with you to discuss our recommendations in full and take you through our report step by-step.
You are free to take the report away and give it due consideration before agreeing to move forward to the next stage.
Once you feel that you can make a fully informed decision to proceed and you have given us your consent to do so, we will begin the process of implementing our recommendations.
We will assist you in completing all the relevant forms and ensuring your applications are processed by the relevant investment houses and providers in a timely manner.
It is important to be aware that the Fiducia Service is only available with an ongoing service agreement in place. Fiducia is built around the ongoing service that will provide ongoing management of your portfolio and products as well as keeping you updated with changes in the market that may have implications for you and your business or family.
Unless you receive confirmation in writing to the contrary, in all our dealings on investment matters you will be treated 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 (FOS).
Where we have categorised you other than as a ‘retail client’ you may request re-categorisation under a client category which benefits from a higher degree of protection. However, we reserve the right to agree to such a re-categorisation on a case-by-case basis, and where we agree to do so it does not necessarily mean that you will have a right of access to the Financial Ombudsman Service.
Further information in respect of the Financial Ombudsman Service is available on their website at the address:- http://www.financial-ombudsman.org.uk/
How we charge
You will always know our fees before you decide to proceed. We don’t hide our costs and have a transparent charging structure, so you can be sure we are working efficiently for your benefit. Our fees are based wholly upon the provision of our qualified and professional expertise; the time taken to analyse your circumstances and devise an appropriate strategy going forward; the design of an appropriate summary report to communicate this strategy to you and considers our firm’s exposure to regulatory, commercial and financial risk.
Should we undertake research and analysis work on your behalf, but you decide not to take up our recommendations, we reserve the right to charge you a fee to cover our time. This will typically be represented by a rate of £150 per hour, with a minimum fee of £750. We will estimate the total cost for you in advance of commencing work if you wish. You may ask us not to exceed a specified amount. This payment will need to be made by cheque or bank transfer.
Should you agree to proceed and we go ahead with the implementation of your strategy, it can be arranged for your total fees to be deducted from the investment amount at outset, via the product provider. Alternatively, you may prefer to make your payment to us by cheque or bank transfer.
Your choice can be made in the Client Declaration section of this document.
Cost of Initial Services
Initial Consultation (1st meeting) – Free of charge
Our Fee for research, analysis and implementing advice is £5,000 for initial investments up to £2m.
(If you decide not to take our Ongoing Management Service, then a 1.50% initial fee of the amount invested will be payable, subject to a minimum fee of £10,000 and a maximum of £25,000. If this path is taken you will not become a client of the Fiducia service and will be treated as a transactional client only).
Over £2m there is no initial charge subject to you taking out our Ongoing Adviser Service.
(If you decide not to take our Ongoing Management Service, then a 1.50% initial fee of the amount invested will be payable, subject to a minimum fee of £15,000 and a maximum of £25,000. If this path is taken you will not become a client of the Fiducia service and will be treated as a transactional client only).
Invoices (if applicable) are issued within 10 days of either an advice service being finalised and/or presented, or in the case of implementation fees, within 10 days of your product/s being commenced.
Standard fees for on-going management services is 0.50% of portfolio value, payable quarterly.
Our fees are unique in the market place, we charge what we consider a very competitive standard rate of 0.50%, then we have a scale of fees that link to risk levels and our RPI (Retail Price Index) benchmark, this is where we are different.
We use Distribution Technologies market leading risk rating software to determine your attitude to investment risk. Once this is agreed we also discuss your capacity for loss. Once determined this decides the benchmark we will apply to your investment return, as shown in the table below.