Important Information

 

Important Information             About Our Services
Telephone: 020 87685796 (London) 01233 800107(Kent)

Email: info@prospecttreefs.co.uk

Website: www.prospecttreefs.co.uk

Address: 10 Chestnut Avenue, West Wickham, Kent, BR4 9ES

Welcome to Prospect Tree Financial Services Ltd

 

Who are we and what do we do?

We are a firm of independent financial advisers and have been helping our clients to meet their financial goals since our formation in 2009. As Financial Planners and Mortgage Advisers, we believe in establishing and maintaining long term relationships so we can navigate our clients through their financial journey.

We are an appointed representative of TenetConnect Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA is the independent regulator of financial services in the United Kingdom. TenetConnect Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 500317.

Who is TenetConnect Limited?

TenetConnect Limited is wholly owned by Tenet Limited, which is a wholly owned subsidiary of Tenet Group Limited (‘TGL’), a leading distributor of financial products and services in the UK. TGL is majority owned by the following corporate shareholders; AEGON UK Distribution Holdings Ltd (22%), Aviva Life & Pensions UK Limited (23%), Friends Life Limited (24%) and Standard Life PLC (25%). Aviva Life & Pensions UK Limited and Friends Life Limited are both companies within the Aviva plc group.

Their address is: TenetConnect Limited, 5 Lister Hill, Horsforth, Leeds, LS18 5AZ. Tel: 01132 390011.

To find out more about TenetConnect Limited and the support and backing they provide us with, please visit their website www.tenetgroup.co.uk/consumer

What can we do for you?

Our mainstream service is to act on your behalf for the purpose of arranging and advising on the following:

  • Investments & Pensions, for example an ISA or Personal Pension Plan;
  • Personal & Family Protection, for example a Life Assurance or Critical Illness Plan;
  • Mortgages, including Buy-to Let;
  • General Insurance, for example Buildings, Contents or Private Medical.

 

For all the services described above we will complete a detailed fact find so we can understand your circumstances, specific needs and objectives. Following our research we will provide a personal recommendation(s) for you to consider. With your agreement we will then implement our recommendation(s) and arrange any products on your behalf.

Once your financial plans are in place it is important to keep them under review. Subject to the type of services you require from us, we can continue to act on your behalf through one of our service packages. Alternatively, for those who prefer a more transactional or ad-hoc ‘pay as you go’ service, we are also happy to provide our services as and when you need them. Ultimately, whichever type or level of service you require from us we will act in your best interests at all times.

Further details about these and other related services we provide are contained in the pages below. This also confirms the typical cost of our services and how we get paid for them.

 

 

 

 

IMPORTANT INFORMATION

 

Before you consider our services in more detail we would like to draw your attention to the following important information:

 

Before we undertake any work on your behalf we will set out, and agree with you, the terms and conditions of our engagement in a written Client Agreement. This will confirm the scope and specific services to be provided, including any on-going services, their associated costs and method of payment. It will also confirm how we use and store personal information we collect from you in the course of providing our services. A copy of our standard Client Agreement is available on request.

 

Under the terms of Financial Conduct Authority (FCA) regulations we will classify you as a retail client for investment and pensions business. As a retail client you have the right to request re-classification as an elective professional client. This may be generally or in respect of a particular service, type of transaction or product, and is subject to the following:

 

·         All requests for re-classification must be made in writing;

·         We will consider such requests on a case by case basis against the criteria set out in FCA rules.

·         We will confirm the scope of any re-categorisation along with the consumer protections you will lose as a result.

·         You must keep us informed of any change to your circumstances that could affect your classification

 

We will not advise you if you are experiencing difficulties managing debts. Free help and advice about managing your debts is available by contacting the Money Advice Service via its website: www.moneyadviceservice.org.uk/en/articles/where-to-go-to-get-free-debt-advice

 

INFORMATION ABOUT OUR INVESTMENT & PENSION SERVICES

We offer a range of services to help you meet your investment and retirement objectives. We provide independent advice, which means that our recommendations to you will be unbiased, unrestricted and based on a comprehensive and fair analysis of the market. The amount we charge and the basis of the payment will depend on the service you choose and your individual circumstances.

We will discuss your payment options with you and answer any questions that you may have. We will let you know if you have to pay VAT on the cost of our service.

It is possible that other costs, including taxes related to the business we conduct and products we arrange for you, may arise. These costs will not be paid by our firm but borne by you.

We may recommend investments in the IFSL Sinfonia Open Ended Investment Company (OEIC).  This investment company has been jointly developed between BNP Paribas and Sinfonia Asset Management Limited, a subsidiary of Tenet Group Limited.

We may also recommend products or services related to your investment and pension needs which are not regulated by the Financial Conduct Authority. For example, cash ISAs, National Savings & Investment Products (NS & I) or Inheritance Tax Planning (IHT).

A description of our initial and ongoing services, their associated costs and payment terms, is provided below.

What can you expect to pay for our investment and pension advice?

Our typical fees for advice and arranging an investment or pension on your behalf are set out below. Where hourly rates are stated, these are the actual hourly rates that will apply. There is an additional charge should you purchase one of our on-going service packages. The typical cost of our ongoing services and what they include is also set out below. You can cancel our on-going services at any time.

Initial Advice Services

For all new clients we offer a first meeting of up to 1 hour free of charge. The purpose of this meeting is to discuss your needs and our services. We usually conduct this meeting at our offices but are happy to discuss matters with you over the phone or Skype, at a mutually convenient time.

Initial Service Description Initial Service Fees
Advising on and arranging lump sum investments, including advice on what to do with your pension arrangements at retirement (your living in retirement options).

 

Service typically suitable for those with an existing investment and/or pension portfolio, or a lump sum to invest.

 

For completing a fact find, undertaking research on your behalf and providing you with a recommendation, we charge a commitment fee of £250 (exc.VAT).

 

We will offset this against your acceptance and set up fees should you choose to go ahead with our recommendations.

 

Payment due on acceptance of our recommendation and/or set up of a new investment/pension:

 

3% of the first £100,000 of your portfolio plus 2% of the next £150,000 plus 1% above £250,000, less your earlier commitment fee.

 

For example: If the value of your portfolio and any new investment is £75,000 the fee due to us would be £2,250 less £250 commitment fee = £2000 (exc. VAT).

 

If the value of your portfolio and any new investment is £150,000 the fee due to us would be £4000 less £250 commitment fee = £3,750 (exc. VAT).

 

Initial Service Description Initial Service Fees
Advice and arranging a new regular contribution investment or pension plan, including a top up to an existing arrangement.

 

This service is suitable for those who only want to save a regular amount, for example every month by direct debit.

 

It would typically suit those with a budget of at least £200 per month for a new regular investment or pension and those looking to top up an existing arrangement with at least another £50 per month.

 

 

For completing a fact find, undertaking research, providing a personal recommendation and arranging the new investment/pension or top up to your existing arrangement.

 

New Investment/Pension Plan:

 

The equivalent of 4 monthly premiums, for example if you wish to invest £200pm into a pension plan the fee would be £800 (exc. VAT).

 

Top up to an existing Investment/Pension Plan arranged by us:

 

The equivalent of 4 monthly premiums, for example if you wish to invest £200pm into a pension plan the fee would be £800 (exc. VAT).

 

 

On-Going Advice and Review Services

We offer two on-going service packages for you to choose from. We will recommend the service we consider to be most suitable for your needs. Once you have purchased an on-going service package you may cancel it at any time, without charge, by writing to us at the above address.

We also recognise that an on-going service package is not suitable for everyone and that some of our clients would simply like to use our services when they need them. For this purpose, we are also happy to undertake future ‘ad-hoc’ or one off reviews of an investment and/or pension portfolio we arranged on your behalf.

Service Description – Premier Service Service Fees – Premier Service
Our premier service is typically suitable for those who prefer more involvement and contact with their adviser. In particular, if you have a larger and more complex portfolio or are now making regular withdrawals from your pensions to fund your retirement, our premier service is designed with your needs in mind.

 

The service includes:

 

·         Review meeting twice per year;

·         Statements and Performance Reports twice per year;

·         Access to your adviser should you need us in the meantime.

·         Annual Statement and Performance Report.

 

Our premier service is available for 0.75% of the value of your portfolio per year and is charged on a monthly basis at the rate of 1/12th of 0.75% per month.

 

For example: If your portfolio was worth an average of £50,000 over a 12 month period, the average monthly charge would be £375 / 12 = £31.25 per month.

 

If your portfolio was worth an average of £100,000 over a 12 month period, the average monthly charge would be £750 / 12 = £62.50 per month.

 

Please note:

 

The exact amount we charge each month will depend on the value of your investment and will increase if the value of your portfolio goes up.

Service Description – Standard Service Service Fees – Standard Service
Our standard service is typically suitable for those who prefer a ‘lighter touch’ and less frequent contact with their adviser. In particular, if you have a lower value and/or less complex portfolio, our standard service is designed with your needs in mind.

 

The service includes:

·         Annual review meeting;

·         Annual Statement and Performance Report;

·         Access to your adviser should you need us in the meantime.

 

 

Our standard service is available for 0.5% of the value of your portfolio per year and is charged on a monthly basis at the rate of 1/12th of 0.5% per month.

 

For example: If your portfolio was worth an average of £25,000 over a 12 month period, the average monthly charge would be £125 / 12 = £10.42 per month.

 

If your portfolio was worth an average of £50,000 over a 12 month period, the average monthly charge would be £250 / 12 = £20.83 per month.

 

Please note: The exact amount we charge each month will depend on the value of your investment and will increase if the value of your portfolio goes up.

Ad-Hoc or One-Off Review Service

This service is typically suitable for those who don’t want to pay for regular reviews by their adviser and prefer to monitor things themselves. Upon request, we are happy to offer one off or ‘ad-hoc’ reviews of an investment/pension we set up for you should the need arise.

The cost of this service will vary depending on the complexity of the work and how long it takes to complete. Our adviser charge for this service is £150 per hour (exc. VAT).

A typical review will include:

  • Updating the information we already hold about you;
  • Re-confirming your objectives and risk profile;
  • Providing you with recommendations regarding the on-going suitability of your portfolio, and;
  • Subject to your agreement, implementing any adjustments to your portfolio we recommend e.g. fund switches.

 

Example cost:

For a portfolio containing 2 separate arrangements (for example a personal pension and an ISA) we would expect a typical review to take approx. 3 to 4 hours calculated in 15 minute intervals.

For example, if it took us 3 hours and 30 minutes to complete a review, our fee would be £525 (exc.VAT).

What are your payment options?

  • We accept direct payment by cheque or bank transfer.
  • We do not accept cash or credit cards.
  • We will tell you if it is possible to settle our fees through a deduction from your investment/pension.
  • For new investments and pension plans funded by regular contributions only, you can choose to pay our fees by instalments.
  • We will allow you to settle our fee in up to 12 monthly instalments over a maximum term of 12 months.
  • If you choose this option we will not provide you with any further services until all the instalments have been paid in full.
  • If you choose to pay instalments as a deduction from your investment/pension, although you pay us nothing up front this does not mean our service is free. You are still paying us indirectly through deductions from the amount you pay into the product.
  • These deductions will go towards settling our fee and will reduce the amount left for investment. An example of how this payment plan works in practice is set out below.

Example

You choose to accept our recommendation to invest £250 per month into an investment product. Our fee for advice and arranging this on your behalf is £1000. You choose to settle our fee in 12 equal monthly instalments deducted from your first 12 monthly contributions to the product, as follows:

Investment Frequency Contribution Amount Fee Deduction Amount Invested
Month 1 £250 £83.33 £166.67
Month 2 £250 £83.33 £166.67
Month 3 £250 £83.33 £166.67
Month 4 £250 £83.33 £166.67
Month 5 £250 £83.33 £166.67
Month 6 £250 £83.33 £166.67
Month 7 £250 £83.33 £166.67
Month 8 £250 £83.33 £166.67
Month 9 £250 £83.33 £166.67
Month 10 £250 £83.33 £166.67
Month 11 £250 £83.33 £166.67
Month 12 £250 £83.33 £166.67
Month 13 onwards £250 N/A £250

 

    • You can also choose to pay the fee instalments due to us directly from your bank account by standing order. For example a fee of £1000 paid over 12 months would mean 12 monthly instalments of £83.33 are collected from your bank account. Standing orders are normally collected on or around the 15th day of the month.
  • Please note that if you cancel your investment or pension product before our fee is settled in full, including cancellation during a statutory cooling off period, you will need to make alternative arrangements to pay our fee.

 

Other benefits we may receive

If we take over the servicing rights of your existing arrangements that were arranged by another firm, we may be entitled to receive an on-going payment as a result. This is commonly referred to as ‘trail commission’. Where this is the case we will offset the amounts received against our on-going service fees. For example, if our on-going service fee is £500 and we receive £200 trail commission from existing arrangements retained as part of your portfolio, the net fee due to us would be £300 (exc. VAT).  

Some of the firms whose products we recommend provide us with access to training and software which allows us to offer you a better service. Some of the costs of these benefits may be passed onto you as part of the total charges you pay, should you choose to purchase a product from one of these firms. Further information regarding these arrangements is available on request.

Other Specialist Services

As part of the TenetConnect Limited Network of Financial Advisers we have access to support services and specialist expertise you would normally expect from a large organisation. Where it is in your best interest we may offer to refer you to another firm within the same Network for specialist services.

With your permission, the other firm may carry out research on our behalf or alternatively advise you directly. The total cost of this service, including our fees for any preparatory work the other firm relies on, will be no higher than our standard tariff of fees and charges stated above

INFORMATION ABOUT OUR INSURANCE SERVICES

Personal and Family Protection

We offer products from a range of insurers for Life Assurance, Critical Illness Cover, and Income Protection Insurance.

General Insurance

We offer products from a range of insurers for Buildings & Contents, Accident Sickness & Unemployment and Private Medical Insurance.

How much do we charge for our insurance services?

Typically we will not charge you a fee for advice and arranging an insurance product. We will receive commission from the insurer and this is reflected in the premium amount you pay to them. The amount of commission we receive will vary depending on the type of contract, term of the cover and the premium amount.

We will tell you how much commission we expect to receive before we transact business for you. You will receive a quotation, which will tell you about any other fees relating to any particular insurance policy we arrange for you.

You also have the option to pay for our insurance services by way of a fee. The amount we charge will depend on the amount and complexity of the work required.

Our standard rate of £150 per hour will apply and is charged in 15 minute intervals. For example if we spent 3 hours and 30 minutes preparing a recommendation and arranging the insurance product for you, our fee would be £525 (exc. VAT). Our fee becomes payable when we provide you with our recommendation(s).

INFORMATION ABOUT OUR MORTGAGE SERVICES

Whose products do we offer?

We offer a comprehensive range of mortgage products from across the market but not deal’s that you can only obtain by going direct to a lender.

How much will you have to pay for our mortgage services?

For establishing your needs, undertaking research and making a recommendation, we charge a fee of £1100. Our fee only becomes payable when your property transaction completes and the mortgage commences. There will be no fee should you not proceed with your property purchase for any reason.

If you choose to proceed with our recommendation and the mortgage goes ahead, we will also be paid commission from the lender for arranging the mortgage on your behalf. This commission will be used to offset our completion fee, so for example if we are paid £1000 commission the completion fee will be £100. If the commission is in excess of £1100 no fee will be payable, a re-imbursement of any excess will not be made.

We reserve the right to charge a non-refundable application fee of £250. Where an application fee has been charged the completion fee will be reduced to £850. The application fee will be only be charged for cases we deem to be complex, for example a client that has an adverse credit history. We will advise you at the outset if an application fee will apply.

You will receive a personalised illustration when considering a particular mortgage. This will highlight the key facts about the mortgage product including any fees relating to it.

INFORMATION ABOUT OUR OTHER RELATED SERVICES

Non-Advised Services

We will tell you how we get paid and the amount before we carry out any business for you.

Credit Broking

We are also Credit Brokers. This means that if you require a loan other than a mortgage, (whether secured or unsecured, e.g. a personal loan) we can refer you to a specialist third party who can discuss your specific needs with you. We will not advise you on this type of borrowing and you will need to make up your own mind whether to go ahead with it or not.

WHAT HAPPENS IF YOU HAVE A COMPLAINT?   

If you are unhappy with the service you have received or a product we have arranged on your behalf, a copy of our complaints procedure, which sets out how we will handle your complaint, is available upon request.

If you would like to make a complaint please contact us either in writing to: Complaints, TenetConnect Limited, 5 Lister Hill, Horsforth, Leeds, LS18 5AZ; or by e-mail: complaints@tenetgroup.co.uk; or by telephone: 0113 2390011.

Further information about the FOS is available from their website: www.financial-ombudsman.org.uk or by calling them on 0800 0234567

Yes, we are covered by the FSCS. You may be entitled to compensation from the scheme if we are unable to meet our obligations. This will depend on the type of business and the circumstances of the claim. The FSCS only pays compensation for financial loss and the limits are per person per firm, and per claim category, as listed below:

Investments:

Arranging and advising on most types of investment (e.g. an ISA) is covered up to a maximum limit of £50,000 per person per firm.

Long Term Insurance Contracts:

Arranging and advising on long term insurance contracts (e.g. a life insurance policy, personal pension or annuity) is covered for 100% of the claim without upper limit.

General Insurance Contracts:

Arranging and advising on compulsory classes of insurance (e.g. employers liability), professional indemnity insurance, and general insurance contracts that pay out on death or incapacity due to injury, sickness, or infirmity (e.g. an accident & sickness policy) is covered for 100% of the claim without upper limit.

Arranging and advising on other types of general insurance contracts (e.g. Building and Contents) is covered for 90% of the claim without upper limit.

Mortgages & Equity Release Products:

Arranging and advising on mortgages and equity release products is covered up to a maximum limit of £50,000 per person per firm.

Further information about the FSCS is available from their website: www.fscs.org.uk

 

 

The information provided within this website is subject to the UK regulatory regime and is, therefore, primarily targeted at consumers based in the UK.

This site does not confer any form of personalised financial advice, should you wish to receive specific financial advice please contact us. 

Prospect Tree Financial Services Ltd is an appointed representative of TenetConnect Services Ltd, which is authorised and regulated by the Financial Conduct Authority. TenetConnect Services Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference 150643. 
Prospect Tree Financial Services Ltd is Registered in England and Wales under reference 06755965.