Charging structure
We offer either commission option or fee-based advice to suit the customer.
Please note that the charging structures cannot be altered once they have
been agreed.
Commission based Advice
Commission rates for most conventional annuities range from 1% to 1.35%
of the fund used to buy an annuity depending on which company is used. Please
note that this does not come out of your fund. We provide full commission
disclosure so you can view the amount of commission payable. Enhanced or impaired
life annuities may pay up to 2% commission. We are able to provide advice
and service on a commission only basis. The advantage with commission-based
option is that you can be sure of obtaining full advice about your pension
but with nothing to pay.
Please note that if you decide to deal directly with the annuity provider,
then they will not give you any commission rebate or any improved annuity
rates and you will not benefit from full independent advice that PAAS provides
concerning your individual retirement options.
Large case discounts
If you have a large case, we recognise that is discount is fair and we
offer the following discounts.
REBATE AVAILABLE FUND AFTER TFC
10% of commission payable £100,001 to £200,000
15% of commission payable £200,001 to £500,000
20% of commission payable OVER £500,000
In the case of non-annuity products, a commission of 3% initial and trail
commission of 0.5% is payable. We are happy to discuss commissions before
any work is undertaken.
Fee-based Advice
Some clients prefer to pay on a fee basis. Fee based advice is charged a fee
of 1½% on any annuity business with any surplus commission being rebated
back to you and any shortfall billed to you. All commissions are fully disclosed
through personalised quotations so you know exactly how much commission has
been paid and how much can be rebated or billed.
For more complicated retirement options, such as draw-down where the advice
may be more complex and require ongoing advice, either an initial fee (and
ongoing fees in all cases where the contract requires regular reviews) can
be negotiated at outset on an hourly rate. This will be offset against commission
payments with any surplus commission rebated and any additional fee owing
billed to you. Fees are agreed between PAAS and yourself using a formal fee
agreement form setting out the fee level payable and payment terms.
