Credenda Ltd / 20 Vicarage Road, Woking GU22 9BH
- The Financial Services Authority (FSA)
The FSA is the independent watchdog that regulates financial services. This document has been designed by the FSA to be given to consumers 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.
- Whose products do we offer?
Investment
Please refer to section 3 of this document
Insurance
/ We offer products from a range of insurers for Life Insurance, Permanent Health Insurance, Critical Illness Cover and Private Medical Insurance
We only offerproducts from a limited number of insurers
We only offer products from a single insurer
Mortgages
/ We offer mortgages from the whole market.
We only offer mortgages from a limited number of lenders
We only offer a limited range of mortgages from a single lender
- Which service will we provide you with?
Investment
/ Independent advice – We will advise and make a recommendation for you after we have assessed your needs. Our recommendation will be based on a comprehensive and fair analysis of the market.
Restricted advice – We will advise and make a recommendation for you after we have assessed your needs, but we only offer advice on limited types of products, or products from one company or a limited number of companies
No advice – You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed
Insurance
/ We will advise and make a recommendation for you after we have assessed your needs for Life Insurance, Permanent Health Insurance, Critical Illness Cover and Private Medical Insurance.
You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.
Mortgages
/ We will advise and make a recommendation for you after we have assessed your needs.
You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.
- What will you have to pay us for our services?
Investment
We offer a range of services to help you meet your personal and financial objectives. 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 you have. Our
fees will be agreed with you in writing before we carry out any chargeable work.
We will tell you if you have to pay VAT on the cost of our service.
It is possible that other costs, including taxes (e.g. stamp duty) related to the business we
arrange, may arise. These costs will not be paid by our firm but borne by you.
A description of our services, associated costs and payment terms, is provided below.
Advised Services – The cost of our services
Our typical fees for advice and arranging investments on your behalf are set out in the table
below.
There is an additional charge for any ongoing work, such as periodic or ongoing reviews, we
carry out on your behalf. We will confirm the rate, frequency, and length of this ongoing
service before beginning any ongoing servicing work for you. You can cancel our ongoing
services at any time.
Service / Initial Charge – Advice / Initial Charge –
Implementation / On-going charge for
periodic reviews and
servicing work
A limited advice
transaction
service instigated
by client request / An initial fee of 2%, subject to a
minimum fee of £500
This will be based upon the
expected time and the agreed
adviser charge irrespective of
whether or not you take up our
recommendations.
Typically the Initial Adviser
Charge applied for the cost of
advice on investing £10,000
will be £500
If the investment amount
considered were to be £50,000
the Adviser charge would be
£1000 / An implementation fee of 1%,
subject to a minimum fee of £250
This will be based upon the
expected time and the agreed
adviser charge.
Typically the Adviser
Charge applied for implementation
on investments of £10,000
will be £250
If the investment amount were to
be £50,000 the Adviser charge
would be £500 / There is no formal
on-going service or
charge involved.
Lump Sum
Investments,
Capped or Flexible
Draw Down,
Pension and
investment
transfer advice / Up to 2% of funds under
consideration depending on
the complexity of your existing
circumstances and your
requirements;
For example:
If the amount of the investments
reviewed is £50,000 and we
charge you 2%, your Adviser
Charge for our advice and
recommendation is £1,000
irrespective of whether or not
you take up our
recommendations / Up to 1% of the amount invested if
you go ahead with our
recommendations;
For example:
If the amount of the investment
is £50,000 and we
charge you 1%, your Adviser
Charge for implementation is
£500 / Service available on
Request,
At least once a year
Typically 0.5% to 1% per
annum
For example:
If the amount of the
Investment is £50,000
and we charge you 1%,
your Adviser Charge for
annual on-going service
is £500
Advice on using
your pension
funds to purchase
an income
at retirement
(your retirement
income options) / Up to 1.5% of funds under
consideration depending on
the complexity of your existing
circumstances and your
requirements;
For example:
If the amount of the pension
funds reviewed is £50,000 and
we charge you 1.5%, your
Adviser Charge for our advice
and recommendation is £750
irrespective of whether or not
you take up our
recommendations / Up to 0.5% of the amount invested if
you go ahead with our
recommendations;
For example:
If the amount used to purchase an
annuity is £50,000 and we charge
you 0.5%, your Adviser Charge
for implementation is £250 / N/A
Review of your
current
pension and / or
investment
arrangements / Minimum per plan/arrangement
Reviewed £500
For example:
If we review 3 plans our
charges could be up
to £1500 irrespective of whether or not
you take up our
recommendations / Up to 1% of any amount
re-invested if you go ahead with
our recommendations;
For example:
If the amount of the re-investment
is £50,000 and we
charge you 1%, your Adviser
Charge for implementation is
£500 / Service available on
Request,
At least once a year
Typically 0.5% to 1% per
annum
For example:
If the amount of the
Investment is £50,000
and we charge you 1%,
your Adviser Charge for
annual on-going service
is £500
Where to save your
money on
a regular basis
(for those with
up to £250/£500 per
month to
invest) / Up to 10% of the potential first
year’s premium under
consideration depending on
the complexity of your existing
circumstances and your
requirements;
For example:
If you ask us to consider an
investment of £300 Per month
(£3,600 per annum) and we
charge you 10% your
Adviser Charge for our advice
and recommendation would be
£360 irrespective of whether or
not you take up our
recommendations / Up to 5% of the first year’s
premium if you go ahead with our
recommendations depending on
the complexity of your existing
circumstances and your
requirements;
For example:
If you invest £300 Per month
(£3,600 per annum) and we
charge you 5% your
Adviser Charge for our advice
and recommendation would be
£180 / Service available on
Request,
Typically 0.5% to 1% per
Annum subject to a
minimum charge of
£250
For example:
If the amount of the
Investment is £15,000
and we charge you 1%,
your Adviser Charge for
annual on-going service
is ££250
Your payment options:
Settling your adviser charge in a single payment
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 pay your adviser charge through a deduction from your investment.
If you invest a regular amount you can choose to pay your adviser charge by instalments.
We will not provide you with any further services in respect of this over the period the
instalments are paid.
Paying by instalments through your recommended product:
If you invest a regular amount you can choose to have your adviser charge instalment
deducted from the product.
Although you pay nothing to us up front, that does not mean that our service is free. You
still pay us indirectly through deductions from the amount you pay into your product. These deductions will pay towards settling the adviser charge. These deductions will reduce the
amount left for investment.
For Example;
You decide to proceed with a recommendation to invest £500 per month into a suitable
product. As stated above our typical charge for providing you with this service would be
equivalent to 15% of the first year premium i.e. £900 (exc. VAT). You may settle your
adviser charge in 4 equal monthly instalments deducted from your first 4 monthly payments,
with the balance being available for investment, as follows:
Your paymentAdviser ChargeInvestment amount
Month 1 - 12£500£75£425
Month 13+£500N/A£500
Keeping up with your payments
If you cancel your investment product before your adviser charge is paid, including
cancellation within a statutory cooling off period, you will need to make alternative
arrangements to pay our fee.
Non Advised Services
We will tell you how we get paid and the amount before we carry out any business for you.
Other benefits we may receive
We will tell you if we are entitled to receive trail commission when taking over servicing
rights on your existing investments which were arranged by another firm. We will use these payments to offset against our fees for ongoing services.
Insurance
A fee
/ No fee for Life Insurance, Permanent Health Insurance, Critical Illness Cover, Premium Protection Insurance and Private Medical Insurance.
You will receive a quotation which will tell you about any other fees or commissions relating to any particular insurance policy we may recommend.
Mortgages
No fee.
/ A fee maybe charged
Fee and refund of commission.
You will receive a key facts illustration when considering a particular mortgage, which will tell you about any fees relating to it.
Refund of fees
If we charge you a fee, and your mortgage does not go ahead, you will receive:
A full refund if the lender rejects your application.
A refund if your application falls through
/ No refund
- Who regulates us?
Credenda Ltd is authorisedand regulated by the Financial Services Authority. Our FSA Register number is 181769. Our permitted business is advising on Life Insurance, Investments, Pensions including Pension Transfers and Opt outs, Mortgages and Non-Investment insurance contracts.You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on
0845 606 1234.
- What to do if you have a complaint
If you wish to register a complaint, please contact us:
…in writing / Complaints Department
20 Vicarage Road, Woking GU22 9BH
… by phone / 01483 715823
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
Deposit business is covered for 100% of £85,000 so the maximum compensation is £85,000.
Most types of investment business are covered up to a maximum limit of £50,000.
Insurance
Insurance advising and arranging is covered for 90% of the claim, with no upper limit.
For compulsory classes of insurance, insurance advising and arranging is covered for
100% of the claim, without any upper limit.