How We Are Paid at Legal & Medical

At Legal & Medical we believe in trust and transparency.  Before any decision on payment is made, we’ll discuss with you the option that is best for you and that you’re most comfortable with.

No charges will be made until we have agreed with you the payment option of your choice: payment by fee, by commission or by fee and commission.

Payment by Fee

If you opt for the payment by fee route, we will work on an agreed notional fee basis whereby the cost of the advice we provide is made clear at the start of our discussions and paid upfront before any investments are made. 

Whilst fees clarify the costs incurred for the advice given, it may not necessarily be in your interest to pay for advice in this way. For example, you may agree a fee of £150 for advice. If this relates to pension planning for a 40% tax payer, you could pay this fee either directly or via the pension provider’s contract (commission).

* Assuming higher (40%) rate tax payer

The payment by fee route in this example is clearly the more expensive route. In fact, the costs incurred for the advice are 95% higher and yet provide no additional benefits.

Payment by Commission

Some aspects of financial planning, other than pension planning, may still lead to payment by commission being the most appropriate route. As there are no associated fees, commission can allow financial advice to take place without you having to physically write a cheque. Some clients prefer this route, principally for ease of payment.

Payment by Fee & Commission

There can be instances where a hybrid of both types of payment – fee and commission – is more appropriate. In this case, whilst a fee is agreed, supplementing it with the commission route can offer tax advantages and/or ensure the cost of the agreed fee is covered.

Fee vs Commission

In 2012, the Financial Services Authority (FSA) will be implementing a number of changes to reform the way independent financial advice is provided and paid for. Under the planned new rules, financial advisers will be prevented from charging commission from selling investments, pensions and insurance products.

Instead, it is proposed that consumers will have to be told how much their financial advice is going to cost and given the choice of paying it as an up-front fee, or having the cost deducted from their investment.

Legal & Medical are at the forefront of these changes. We wholeheartedly back the FSA’s attempt to prevent consumers such as yourself from being wrongly advised and mis-sold products as a result of advisers being biased towards products they earn commission on.

Free, No Obligation Financial Health Check

During your free, no obligation initial consultation, your L&M financial adviser can further explain the various payment options so you can decide which route you're most comfortable with.

Contact us today to arrange a meeting at a time and place convenient for you or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it