Client Agreement
When we meet with you, we will explain how we work on your behalf. This will include discussing your current situation, your financial and personal objectives, and obtaining relevant information from you to enable us to then proceed to making a recommendation to meet your objectives. We will also discuss with you the options for payment (see “How we are Remunerated”).
Emery Little is a trading name of Emery Little Wealth Management Ltd which is regulated by the Financial Conduct Authority: please feel free to check the FCA Register (our number is 615762) which you can access here (www.fca.org.uk/firms/financial-services-register) or by telephoning 0800 111 6768.
Independent Advice
We are independent for investments and pension business. This means that we will assess a sufficient range of relevant products available on the market which is diverse in terms of product type and provider to ensure that your investment objectives can be suitably met. We are not limited in the type of product or provider in terms of having any close links with any firms or any contractual relationship with a third party that may impair the independent basis of our advice to you.
We will offer you the opportunity of paying by fee directly yourself or via Adviser Charging through the product provider recommended (please refer to details on our charging structure).
When looking to address your protection needs, we will provide advice based on a fair and personal analysis of the market.
How we are remunerated
We charge fees for the advice and assistance in implementing any recommendation provided by Emery Little. We do not include custodian fees or provider charges. Following the initial meeting we will confirm the next steps of our advice process and provide an estimate of the fees payable. Where VAT is applicable, we will highlight this to you before any fee is charged. However as the intent is intermediation, it is unlikely that VAT will be chargeable.
The fee is to be paid directly to Emery Little. However some providers may facilitate the payment of the fee from products we recommend.
The fees that you pay for investment and pension advice is dependent upon the area of advice that you require and the client proposition that you select for on-going advice and servicing.
Emery Little clients are typically involved in an established long term relationship formalised with a service agreement. The service agreement will include ongoing fees for a clearly detailed service. We would not usually expect any extra fees to be due. If a substantial piece of work is being undertaken outside of the service agreement, this will be priced in line with our project fees. In the event of less substantial ad hoc work, we reserve the right to exercise discretion but will notify if this work is to be charged on an hourly rate.
Initial Services
We will confirm what we will charge you in writing before beginning work. We will tell you if you have to pay VAT. The initial work we do to analyse your situation and set out your strategy starts at £3,000.
Once we start to implement your plan, and manage your financial plan and investments, we charge an annual fee of 1% of your portfolio value.
For a new client who has a moderately complex situation and ultimately invests £1million through Emery Little our typical charges would be a £3,000 financial planning fee plus an advice and implementation charge of £10,000 (1%), usually deducted from the investment amount at the point investments are arranged. For a typical Core Portfolio Investment made into an ISA or General Investment Account through a typical Investment Administration Platform, there would be no additional initial charge.
An initial meeting with a Director or Adviser typically of 1.5 hours, charged at the hourly rate quoted below will usually take place before we agree on the full scope of work we will undertake for you.
Settling your adviser charge in a single payment
You can pay our adviser charges by cheque or BACs. We do not accept payments by cash. Our charges will become payable on completion of our work and should be settled within 30 days.
You may also pay our adviser charges via deductions from the financial product(s) that you might invest in, where the product 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, depending on your circumstances, have other consequences. If you select this option we will discuss the implications of using this payment method with you prior to putting it in place.
For any protection advice that we may implement such as life assurance, we will take commission payable by the insurer. You will be informed of how much commission we will earn prior to signing any application form.
Please note (as referred to in the table below) a charge will be applied even if you choose not to invest in a product. We reserve the right to charge you for services provided prior to cancellation.
Non-advised services
You can pay for our non-advised services on the basis of commission or fee. We will tell you how we get paid and the amount before we carry out any business for you.
Payment for ongoing services
Our ongoing service, called True Wealth Management has been designed to provide periodic reviews to ensure that recommended products remain relevant to your circumstances. Details of what is included in the True Wealth Management Service are provided in our Client Services ‘Summary of Ongoing Services’ document. Our charge related to this service is as follows;
Ongoing service | Ongoing charges |
| True Wealth Management | Emery Little Fees 1% of your Portfolio Value per annum, subject to a minimum fee of £3,000 A client with a portfolio of £300,000 and above would automatically qualify for this level of service. Costs of Fund Administration and Portfolio Management Typically an Investment within an ISA or Collective Investment into an Emery Little investment portfolio would cost a further 0.57% (£1,710 for a portfolio of £300,000) in fund and administration charges. |
Payments for Emery Little fees in relation to the above service can be made either by regular fee (paid by standing order) or by deduction from your investment(s) on a monthly, quarterly, six-monthly or annual basis, where the product provider is able to offer this facility. These deductions could reduce the amount left for investment and may, depending on your circumstances, have other consequences. If you select this option we will discuss the implications of using this payment method with you prior to putting it in place.
The service can be cancelled at any time by simply informing us in writing subject to the notice period set out within your Service Agreement. Please note that we reserve the right to charge you for services provided prior to cancellation.
Hourly rates
Hourly rates as detailed below, will be charged at the commencement of a client relationship, prior to the formalisation of a service agreement or for occasional ad hoc client work not included within their service agreement. We will confirm the rate we will charge in writing before beginning work. Our typical charges are:
|
Director |
£300 |
|
Adviser |
£200 |
|
Senior Paraplanner (Technical) |
£100 |
|
Paraplanner (Technical) |
£75 |
|
Administrator |
£50 |
|
Secretary |
£30 |
However in most cases we will agree a specific fee for the work which we undertake for you in line with our Schedule of Fees Document
Client classification
As a client of Emery Little we will classify you as a ‘retail client’ for investment and pension advice and as a ‘consumer’ for protection advice. This will provide you with the maximum regulatory protection available to you. Should your classification change in the future, we will advise you accordingly in writing and obtain your agreement before proceeding with any financial planning advice.
How we act for you
The company will exercise due care and diligence in conducting their business, but will not be liable for any depreciation of investments arranged by them.
We prefer our clients to give us instructions in writing to avoid possible disputes. Advice we give you will usually be confirmed in writing. Where any recommendation we make, or transaction we undertake for you, results in a right to cancel the policy under certain conditions, we will advise you of these rights. We will also tell you if you do not have a right to cancel the arrangement.
There may be occasions where we, or one of our customers, will have some form of interest in business that we are transacting for you. If this happens, or we become aware that our interests or those of one of our other customers conflict with your interests, we will inform you in writing and obtain your consent before we carry out your instructions. If we can continue to act for you, we will tell you how we will ensure your interests are protected. On occasions we may have to cease acting for you, but we will help you find advice from elsewhere if you want us to. Should you require further information in relation to our conflicts of interest policy then please contact us at the address shown.
When we arrange investments for you we will register these in your name unless otherwise agreed in writing. Additionally, we will ensure you receive either a contract note, documents of title, or certificates evidencing title. Where a number of documents relating to a series of transactions is involved, the documents will normally be retained until the series is completed.
All documents, cheques and paperwork may be sent by post at the client’s risk as soon as we receive the documents from the product provider concerned. We shall, at the client’s request, send documents by registered post. In the absence of such a request, the client shall pay all charges incurred for the recovery or replacement of lost documents.
Any advice that we give will be based on our understanding of your financial objectives and your attitude to investment risk. When considered in the context of your broader financial situation, as illustrated in your investment map, we will endeavour to ensure that any recommendation made is suitable for you. Any recommendation made will be confirmed in writing to you. Should you decline to provide the information requested about your circumstances then we may decline to continue with the business relationship since we would not be able to demonstrate that the recommendation is suitable given your financial circumstances.
Please note that if you reside outside of the UK, you should seek further advice from a local adviser in your place of residence regarding the impact of our advice in relation to local taxation, practices and law. This is because the advice we provide you will be on the basis of being a UK Independent Financial Adviser and we do not have specialist knowledge of any legislation, taxation or financial practices outside of the UK.
Tax advice
We cannot accept responsibility for taxation advice. Clients must be responsible for their own taxation position and we strongly recommend that clients take advice on taxation matters from a qualified accountant.
Settlor Excluded Discretionary Trust
Where Emery Little’s draft trust documentation is used by a client, Emery Little and its advisers accept no responsibility for ensuring that the Trust is suitable, or for any loss, damage or other claim that may arise from the use of this Trust or the way in which it is completed. We strongly recommend clients consult their own tax and legal advisers to ensure the trust meets their requirements.
Emery Little Client Portal
As part of our True Wealth Management Service, you will be given access to our Client Portal.
One of the elements of this service, is a document storage facility, through which Emery Little will deliver various documents relating to our work together. You are also invited to use this facility to store other documents (for example, insurance schedules, copies of wills etc) relating to your financial life. However, this service is not designed to hold large amounts of personal data (photographs, videos etc). While we will not impose a specific usage limit on individuals, this will be monitored and subject to a fair usage assessment. We will contact you if we feel this is being abused and reserve the right to apply additional charges.
Investment risk
All investments carry a degree of financial risk which will tend to increase in proportion to the potential rate of return on the investments. Any product which is directly or indirectly invested in assets which may fall in value (for example equities) may itself fall in value along with any decrease in value of those assets. Before entering into any investment agreement, you must ensure that you understand the risk associated with the product and are content to accept that level of risk in the context of your overall financial position.
Investments can go down in value as well as up and you could get back less than you invest. The past is not a guide to future performance.
We do not handle client monies
Crossed cheques for premiums or investment monies can only be made payable directly to the product provider. No premiums or investment monies of any kind should be paid or made payable to anyone else. The only cheques payable to Emery Little should be for payment of Emery Little fees.
Contact
The amount of contact that we provide to you is dependent on the service proposition that you agree to (please refer to Emery Little’s True Wealth Management Service Agreement document) and we are not obliged to contact you over and above the agreed proposition.
Please make sure you are aware and comfortable of the amount of contact you will receive and you are aware of the limitations of the proposition which we agree. You need to be happy that the proposition selected meets your needs.
Additional contact or services over and above our agreed services, can be arranged at a cost which will be agreed with you.
Termination of this agreement
This agreement will remain effective and in force until such time that you, or we, wish to terminate the agreement. Either party may terminate our authority to act on your behalf at any time without penalty. Notice of this termination must be given in writing by first class post. It will be deemed to be received 2 business days after being posted.
Any business currently being completed will be completed unless we receive your instructions to the contrary. You will be liable to pay for any transactions made prior to termination and any fees outstanding, if applicable.
Delay in processing
We will use reasonable endeavour to act upon any instruction provided by you. However, the company will not be held responsible for any delay beyond its control, or as a result of a failure by any party (including the client) to complete all the necessary steps to process a transaction.
Complaints
We have a written policy for handling complaints and how we ensure we deal with each complaint promptly and fairly. You can obtain a summary from us should you so request. Should you have cause to complain for any reason, a copy of our policy for handling complaints will be automatically sent to you. Please direct your complaint to the Compliance Officer at the company address.
Emery Little
By post: Centro Forum, 3rd floor, Office 3S.1, 74-80 Camden Street, London, NW1 0EG
By phone: 01582 841222
By e-mail: [email protected]
Clients should be aware that if they are unhappy with any response to a complaint received from the company, they may complain directly to the Financial Ombudsman Service free of charge who will then assess whether they have an eligible complaint before proceeding with an investigation. Clients can contact FOS via their website or by contacting them on 0800 023 4 567.
Money laundering
We are obliged to conform with the UK Money Laundering Regulations and to the Joint Money Laundering Steering Group guidance notes. These regulations require all financial institutions to verify the identity and place of residence for each beneficial owner. In order to meet these requirements, we will require sight of certain documentation and confirmation as to where the investment monies are coming from. If you provide false or inaccurate documentation and we suspect fraud or money laundering then this will be recorded.
The company reserves the right to approach a third party in order to verify the identity of a client, or any other person providing funds on behalf of an investment made in the client’s name.
Where further information is required, to verify identity, the company reserves the right to delay applications or withhold settlement until sufficient identification has been provided.
Not readily realisable assets
We may, on occasions and, if appropriate, advise you on investments which are not readily realisable. Where this is the case, we will draw your attention to the risks associated with these investments as there is a restricted market for them. In some circumstances, it may therefore not be possible to deal in the investment or obtain reliable information about its value.
Unregulated investment products
Our services may also include advice on investments relating to or executing transactions in units in unregulated collective investment schemes. Where we recommend an unregulated investment/ product then we will confirm to you that the FCA does not regulate the investment/product and therefore you may not be afforded the protections from the Financial Ombudsman Scheme or the Financial Services Compensation Scheme.
If you are an eligible claimant under the rules of the Financial Conduct Authority, you will also be protected by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. Compensation for investment advice is provided for the first £50,000 of any claim in full per defaulting firm. For protection advice 100% of the whole claim may be provided with no maximum limit of compensation per defaulting firm. Further information about compensation arrangements is available from the Financial Services Compensation Scheme. The Financial Services Compensation Scheme may also provide awards if any third party institution we may use is declared in default or insolvent.
Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) requires US persons holding an interest in any specified foreign financial assets with an aggregate value exceeding $50,000 to report related information to the IRS.
It is your responsibility to inform us if you:
- Have a US citizenship or lawful permanent resident (green card) status
- Were born in the US
- Have a US residence address or US correspondence address (including US PO box)
- Have standing instructions to transfer funds to an account maintained in the United States or directions regularly received from a US address
- Have an “in care of” address or a “hold mail” address that is the sole address with respect to the client
- Have a power of attorney or signatory authority granted to a person with a US address.
Please note that we are not responsible in any way for any reporting obligations that you may have in relation to FATCA. We may also share your FATCA status with other Financial Institutions, HMRC and /or IRS if requested.
Law
These Terms of Business are governed and shall be construed in accordance with English law and the parties shall submit to the exclusive jurisdiction of the English Courts.
Data protection
The company ensures that all data will be held in compliance with current and future legislation. This document should be read in conjunction with our Privacy Policy.
For your security and training purposes, telephone calls may be recorded. They may be used as evidence in the event of any dispute with the company.
You agree to us sharing any information that we hold about you with a fraud reference agency should it be required.
You can access the data held by Emery Little at any time, as set out in our Privacy Statement. There will be no charge for this, and we will provide requested data within 30 days of the initial request.
