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Client Proposition
Pension and Investments
BSG Financial Solutions LimitedUnit 3, Chestnut HouseFarm Close, ShenleyRadlettHertfordshireWD7 9AD
T 01923 852080F 01923 [email protected]
Contents Who we areWhat we doThe process we followHow we workOngoing serviceHow will you pay us for our services?Our services and products
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About OpenworkOpenwork is a well-established financial services distribution companysupporting hundreds of firms, like ours, around the UK.
Being part of Openwork gives our business the support we need to dowhat we do best – giving you high quality professional financial advice.
Openwork provides us with the following:• Access to the pension, investment, mortgage and protection
products from some of the UK’s biggest brands• Payment administration and reconciliation services• IT• Regulatory support
Who we are
With 35 years experience BSG FinancialSolutions Limited offers financialsolutions for both personal and corporateclients and has achieved the covetedChartered Financial Planning status.
As a firm of Chartered financial plannerswe have satisfied the rigorous criteriarelating to professional qualifications andgood ethical practices.
We operate a team ethos and willsurround you with the right talent andexperience to ensure your financialsolutions are always fit for purpose. If youhave an accountant or solicitor or otherprofessional connections that work withyou we will ensure that what weadvise fits with the advice those fellowprofessionals may be giving you.
What we doOur service is built aroundcomprehensive financial planning and sound investment principles. By exploringyour goals and objectives we can tailor afinancial strategy specific to your needs.
Our financial planning process is brokendown into a series of stages which focuson ensuring your life aspirations and theinvestment of your money are carefullyaligned.
Having completed a detailed review ofyour current position and arrangements,we will provide you with specificrecommendations and explain thebenefits and risks associated with theapproach we have suggested.
If you are happy with ourrecommendations we will help youcomplete the relevant paperwork and putyour financial plan in place.
As your aspirations evolve in your life, soshould your financial plan and we will beon hand to review this with you on aregular basis, should you choose.
Stage 1Your goals
We establish your life goals,personal circumstances,aspirations and concerns.
–Page 6
Understanding and Analysis
Stage 4Design your strategyHaving completed the
preparatory work, we willprepare a personal report andrecommendations, then set outdifferent strategies which canbe used to get you where you
want to be.–Page 7
Advice and Implementation
Stage 3Analysis
We assess your currentposition and how you have
arrived there, with the intention of making a recommendation on the
type of products that will best suit your needs.
–Page 6
Understanding and Analysis
Stage 5Implementation
We agree the plan to implement the strategy to help you achieve
your objectives over a givenperiod of time.
–Page 7
Advice and Implementation
Stage 2Your information
We collect all relevant personal and financial data and establish
your perceived risks.–
Page 6Understanding and Analysis
Stage 6Regular reviews
If you choose, we will meet onan ongoing basis to assess your
strategy and implement thenext steps in your plan.
–Page 7
Ongoing Service
About OpenworkOpenwork is a well-established financial services distribution companysupporting hundreds of firms, like ours, around the UK.
Being part of Openwork gives our business the support we need to dowhat we do best – giving you high quality professional financial advice.
Openwork provides us with the following:• Access to the pension, investment, mortgage and protection
products from some of the UK’s biggest brands• Payment administration and reconciliation services• IT• Regulatory support
The process we follow
Consultation
• Introduction • Agree how we work together• Agree remuneration method
Fees
At our expense
We will introduce ourselves and provide informationabout our business, how we would like to work with you,the intermediary services we can provide and the costsof those services.
A key part of the financial advice process is decidingwhat services you would like and to agree how you wouldlike to pay for them.
At this stage of the process, we will agree with you yourpriorities and the appropriate fees prior to commencingany work.
We cannot charge you a fee for work completed withoutyour prior agreement.
Please ensure you are clear about the services you wantand how you will pay for them before we proceed with anywork that may incur a charge. We will not exceed a specifiedbudget limit without first consulting with you and receivingyour written commitment to proceed further.
Understanding and Analysis
• Identify goals and objectives• Information gathering• Assess objectives • Review existing plans • Research
Fees exempt from VAT
A fee of £1,000 offset against implementation
Once we have decided to work together, we gatherpersonal and financial information from you and we willtalk to you about your financial goals, so we can work outour recommendations and advice including which productswould be most suitable for your needs. We also gatherdetailed information about your current financial plans,policies and any commitments.
Where we are considering your investment needs wewill assess your attitude to investment risk, this will helpus to understand how much investment risk you are willingto take with your money.
We cannot guarantee that we can meet all your objectivesand financial goals but we can work with you to help youwork towards them.
Please be aware that if you do not move to stages 4 and 5(Advice and Implementation) our fee for Understanding andAnalysis still applies.
NB. If you decide to appoint us as your Adviser(s) and thework required to assess your circumstances and provide youwith advice is outside of our standard charging structure, wereserve the right to apply a chargeable fee of £275 per hourfor advice and 100 per hour for administration.
If this applies, we will advise you in writing before undertakingsuch work and give you an estimate of the total cost involved.
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How we work
Stage 1Your Goals
Stage 2Your Information
Stage 3Analysis
Advice and Implementation
• Devise investment strategy• Select investment provider if applicable
• Complete documentation• Process applications
Fees (exempt from VAT)
Lump Sum3% of the first £250,000 invested, then1% of all further sums above £250,000Regular PremiumAn amount equal to 50% of the first 12 months contribution.
Once we have gathered all the necessary information, wewill provide you with tailored financial recommendations on the areas you wanted to review.
We will then agree the recommendations you want usto implement, in order to meet your needs and objectives.This may also include any broader or more complexplanning such as trust work. Where relevant, our servicesand charges for referring clients to discretionary fundmanagers will be disclosed to you separately.
We will help you complete the relevant application(s)and any additional information required. It is vitally importantyou check all the information you have provided is correctbefore you sign any documents. We will then monitor yourapplication(s) through to product issue and make sure youreceive the related product documentation. Where youchoose to make regular contributions, our fee may bespread over a longer period dependent on our agreement.
Ongoing Service optional
For example, we will:• Review your financial plans• Provide you with regular valuations• Invite you to regular meetings
Fees1
A percentage of funds under management, dependent on ongoing services
Please see overleaf for details
We aim to build long-lasting trusted businessrelationships with all of our clients. An essential part of this is to continually review your arrangements to ensure that they continue to match your goals and objectives at any given period throughout your financial planning lifetime.
We can provide you with ongoing support and servicingoptions to suit your specific needs in areas which you have identified as being important to you.
If you elect to receive an Ongoing Service, we will chargeyou a percentage of your investments based upon the levelof service you’ve chosen. This will be deducted from yourinvestments, of which 0.12 per cent goes to Openwork onan ongoing basis. This charge pays for ongoing technologyand administrative support for investment products provided to my firm by Openwork to help maintain the quality and delivery of our Ongoing Service to you. In addition, my firm also pays a percentage of the total fees to Openwork for the advice support services that they provide.
For example, if you invest £50,000 at a maximum agreedongoing service charge of 1.25%, you will pay £625, perannum excluding VAT. The ongoing service charge mayincrease as the fund grows.
Ongoing Service is optional. If you choose to take it youcan cancel at any time.
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Stage 6Regular Reviews
An example of our Advice and Implementation chargesIf you invested £100,000 and the agreed charge was 5% this means £5,000 excluding VAT would be immediately deducted from your investment or paid to us direct.
An example of our Regular Premium chargeFor example, if you invested £100 a month and the agreed charge was 50% of the first 12 months contribution, the total charge would be £600. If you choose to pay this in instalments, £50 would be deducted from each of the first 12 months contributions.
1 Exempt from VAT if incorporated within the same fee agreement as Advice and Implementation. Otherwise subject to VAT.
Stage 4Design your strategy
Stage 5Implementation
Ongoing service options plus associated fees are as follows
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An example of ongoing chargesIf you invest £100,000 and the agreedongoing service charge is 1%, you will pay£1000, per annum excluding VAT, payableon a monthly basis from the first month afteryou invest. The ongoing service charge mayincrease as the fund grows.
Private Client ServiceIdeal if you...
• Are looking for your adviser to provideregular feedback on your investments andensure that the strategy matches the degreeof risk and volatility you are prepared totolerate.
• Are looking for a holistic approach tofinancial planning and wish to engage with aprofessional adviser on an ongoing basis toestablish and achieve your goals andobjectives.
• Require an ongoing review process to mapprogress and respond to changingcircumstances
• Are looking for your adviser to proactivelyintroduce new ideas and opportunities
Service Portfolio • We will invite you to an annual review wherewe will discuss:- your objectives and goals;- your attitude to risk;- any changes in circumstance;- market updates and performance of yourinvestments; and- any impacts on your financial planning.Any changes to your investment(s) requiredas a result of the review are also included.
• A Financial Planning report or summary, asappropriate, including portfolio updates andvaluations on an annual basis
• Portfolio review and rebalancing in line withyour attitude to risk and investment objectives
• Access to our investment platform, with theability to view your portfolio and contractualdocuments online
• Consultation with your other professionaladvisers at your request ie. solicitor /accountant
• Access to your adviser to discuss furtherareas of your financial planning
• Full access to Practice staff
• Trustee & Executor briefing service
• Complimentary financial review for onefamily member
• Client record keeping and file maintenance,for example:– Policy surrenders or partial surrenders– Administration such as changes of address– Replacement and copy documents
What will it cost
0.90% of the funds under management
Financial Planning Service Ideal if you...
• Wish to take control of your financialplanning
Service Portfolio • A Financial Planning report or summary, asappropriate, including portfolio updates andvaluations on an annual basis
• Access to our investment platform, with theability to view your portfolio and contractualdocuments online
• Access to your adviser to discuss furtherareas of your financial planning
• Full access to Practice staff
• Client record keeping and file maintenance,for example:– Policy surrenders or partial surrenders– Administration such as changes of address– Replacement and copy documents
What will it cost 0.60% of the funds under management
Ad hoc servicesIdeal if you...
• Wish to manage your own financial plan
This includes• Record keeping in line with our regulatoryresponsibility
What will it cost • All ad hoc work will be carried out on anhourly rate basis, with a minimum charge of 1 hour’s work
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How will you pay us for our services? Prior to commencing any aspect of our workwe need to agree with you the services you wouldlike us to deliver and how you will pay for them.The following outlines how we are paid. We won’tcharge a fee until we’ve agreed it with you. Youmay ask us for an estimate if you’d like to pay anhourly rate and we won’t exceed the estimatewithout your authority.
If we charge a fee for Understanding and Analysis,whether you buy a product or not, you will pay usa fee for our advice and services, which willbecome payable on completion of our work. Youwill be sent an invoice on completion of the workfor any fees due.
Lump Sum InvestmentsPaying by a percentage of the amount investedIf you decide to appoint us as your Adviser(s)the fees for Advice and Implementation may bededucted from your investment by the provider,or you may pay us direct.
If you elect to receive an ongoing service, wewill charge you a percentage of your investmentsbased upon the level of service you’ve chosen.This will be deducted from your investments.
Paying by fixed fee Where we charge a fixed fee amount for initial orongoing services, this may be deducted from yourinvestment, or you may pay us direct.
Paying by hourly rateIf the work required to assess yourcircumstances and provide you with adviceis outside our standard charging structure,we reserve the right to apply an hourly rateas stated earlier.
If this applies we will advise you in writing inadvance of undertaking any such work and giveyou an estimate of the total cost involved. Thismay be deducted from your investment or youmay pay us direct.
Regular Premium InvestmentsIf you decide to appoint us as your Adviser(s)the fees for Advice and Implementation may bededucted from your contributions by the provider,or you may pay us direct. As with Lump SumInvestments if you elect for an ongoing service,the cost of this will be deducted from yourinvestment on an ongoing basis.
Pure Protection ProductsFor whole of life and term pure protectioninsurance (life and critical illness cover) we arepaid by commission from the insurer. This meansthat if you purchase one of these products we willreceive commission in addition to any fee indicatedabove and in addition to any adviser charges/feesyou may have been or will be paying Openwork forinvestment related services. The amount ofcommission will be disclosed separately shouldyou purchase one of these protection products.
Additional points to note
Omnis InvestmentsSome of the investment products we offer have access to funds provided by Omnis Investments Ltd, a company within the Openwork Group controlled by Openwork Holdings Limited.
As the Authorised Corporate Director of the funds, Omnis Investments Limited is paid an annual management charge from the funds. This is not an additional cost to you, but is paid out of the Ongoing Charges Figure disclosed in the Key Investor Information Document.
AnnuitiesOpenwork offers restricted advice and in relationto conventional annuities, only offers productsfrom Partnership Life Assurance Company Limited.Openwork has entered into marketing supportagreements to provide services to Partnershipand be reimbursed for these. Where a Partnershipannuity is recommended to you, further informationregarding this arrangement will be provided in thePartnership illustration before completing yourapplication and confirmed in our SuitabilityReport which explains why the recommendationis suitable for you.
Investment
Independent advice: We will advise and make a recommendation for you after we have assessed your needs. Our recommendations 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. We can only offer products from a limited number of companies. You may ask us for a list of companies whose products we offer.
No advice: You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products we provide details on. You will then need to make your own choice about how you proceed.
Insurance
We will advise and make a recommendation for you after we have assessedyour needs.
You will not receive advice or a recommendation from us. We may ask somequestions to narrow down the selection of products that we will provide detailson. You will then need to make your own choice about how to proceed.
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Mortgages and Insurance
Insurance
We offer products from a range of insurers.
We can only offer products from a limited number of insurers for lifeassurance, critical illness cover, income protection, buildings and contentsinsurance, and accident, sickness and unemployment insurance.Ask us for a list of insurers we offer insurance from.
We can only offer products from MetLife UK for cash lump sum accident protection.
Whose products do we offer?
Which service will we provide you with?
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What to do if you have a complaintIf you wish to register a complaint, pleasecontact us:
…in writing Write to: Complaints Management Team,Openwork Limited, Washington House, LydiardFields, Swindon, SN5 8UB.
…by phone Telephone 01793 567800
Information about our internal complaints handling procedures is available free of charge, on request from the Complaints Management Team.
If you cannot settle your complaint with us,you may be entitled to refer it to the FinancialOmbudsman Service.
Material InterestsIf any material interest or conflict of interestmay or does arise between us or any of our otherclients and you, we will inform you and obtain yourconsent before carrying out any instructions. Theremay be occasions when we will be unable to actfor one of the parties.
Data ProtectionOpenwork Ltd and its Appointed Representativesare registered under the Data Protection Act1998. It is understood that we keep personaland financial information with regard to yourcircumstances on file (electronic and/or paperbased) as required to be able to advise youas to your financial planning needs.
We confirm that this information will notbe used, or transferred by us to any otherfirm or company, other than is required in theprocessing of business. We confirm we cannotbe held responsible for the information held onyour file becoming inaccurate due to your changeof circumstances if you fail to inform us ofthose changes.
How to get more informationIf you would like further details on how we useyour personal information or if you have any dataprotection queries, please write to:
The Data Protection OfficerOpenwork Limited, Washington House, LydiardFields, Swindon, SN5 8UB.
You may receive more information about dataprotection from the companies that we haveintroduced you to. We may record telephonecalls so we can check we have acted on yourinstructions correctly and to ensure we are givingyou appropriate service. We may also monitorcalls for security and training purposes.
Client categorisation In providing the Services to you, we willcategorise you as a “retail client”. This meansthat you will have the highest level of protectionsavailable under the regulatory system.
Financial Services Compensation SchemeWe are covered by the FSCS. You may beentitled to compensation from the scheme ifwe cannot meet our obligations. This dependson the type of business and the circumstancesof the claim.
InvestmentMost types of investment business are coveredup to a maximum limit of £50,000.
InsuranceInsurance advising and arranging is covered for90% of the claim, without any upper limit.
Further information about compensation schemearrangements is available from the FSCS.
Best execution Under the FCA rules we are obliged to complywith the obligation to act in accordance with thebest interests of our clients when transmittingorders to other entities for execution. For mostof the Financial Products we arrange there is onlyone execution venue and the price paid will be thatstated by the product provider. We will review ourorder execution arrangements annually.
Further important provisions• We may provide you with information about
particular Financial Products for marketing purposes. For some Financial Products, you will have a right to withdraw or cancel the contract within a certain period. Details of such rights are usually set out in the product literature and/or we may notify you separately of your rights.
• The value of investments can fall as well as rise and you may not get back the full amount invested. Specific risks associated with particular products will be included in the product documentation.
Who regulates us?We are an appointed representative ofOpenwork Limited, Washington House, LydiardFields, Swindon, SN5 8UB, which is authorisedand regulated by the Financial Conduct Authority.Openwork Limited’s Financial Services Registernumber is 408285.
Openwork Limited’s permitted business isadvising on and arranging mortgages, generaland pure protection insurance and life insurance,pensions and investments.
You can check this on the FinancialServices Register by visiting the FCA’s websitewww.fca.org.uk/firms/systems-reporting/registeror by contacting the FCA on 0800 111 6768.
Loans and ownershipAllied Zurich Holdings Limited (“AZH”)holds 25% of the ordinary shares in OpenworkHoldings Limited. AZH is ultimately owned byZurich Insurance Group Limited (“ZIGL”). ZIGLis incorporated in Switzerland and also ownsZurich Assurance, Zurich Insurance and SterlingISA Managers Limited.
BSG Financial Solutions Limited13/02/2015v6
BSG Financial Solutions LimitedUnit 3, Chestnut HouseFarm Close, ShenleyRadlettHertfordshireWD7 9AD
T 01923 852080F 01923 [email protected]
