What we charge, and why
[1] The short version
0.75% at outset. 1% a year. No VAT. Nothing else.
It is surprisingly hard to get a straight answer on what financial advice costs. We would rather you knew before you picked up the phone, so here is ours.
The fees our clients pay are our only income. We receive nothing from platforms, fund managers or anyone else, so our only commercial interest is your wellbeing. Commission on pensions and investments has been banned since 2013.
[2] Who we are, and what you pay for
Chancery Lane is an independent, data-driven wealth management firm. We combine financial planning with investment management, and income investing is our specialism. We do our own research and publish it, free, at chancerylane.net.
Every client has a bespoke portfolio, researched by our in-house portfolio manager, who is qualified as a fund manager, and supervised by our investment analyst and a company director. We do not use institutional tools. They are built for open-ended funds, and our clients are people, not numbers.
No surprises. We tell you what income to expect in pounds and pence, and at every annual update we show you, to the penny, what was actually generated. No blaming the markets, no twelve-month opinions.
Our advisers are qualified from Diploma to Certified and Chartered level, each completing at least 52 hours of professional development a year. Our work is covered by professional indemnity insurance and checked by external compliance specialists.
[3] Who we are not
We are the wrong firm for some people, and it is honest to say so now.
We do not run our own funds, and we do not sell pre-made portfolios with risk labels.
We do not do one-off projects, unless it is for a charity.
We do not write financial plans for people who want to manage their own money.
We do not do complex tax strategies, US tax in particular.
We are not the right team if your investable assets are below £250,000, though we may still be able to help with guidance.
And we are not a sales team for an investment house. The people you meet are the people who did the research and who take responsibility for delivering your income.
[4] Fiercely independent
We are agnostic about platforms, managers and products, so nothing compromises our recommendations and we can rely on data analysis to drive everything we do.
We currently supervise client money on 11 different platforms, invested with 47 different asset managers, and have no financial relationship with any of them. As an independent firm we cannot accept payments or benefits from product providers, and we would not want to. If a platform or a fund stops being the right home for your money, nothing stops us saying so.
We interview asset managers ourselves, and if we are uncertain about what we hear we do not recommend them. Video recordings of some of those conversations are on our website.
We are advisory, not discretionary. Your money cannot be moved without you first receiving our reasons in writing, talking it through as needed and giving your written consent.
[5] Our initial fee: 0.75%
One fee covers everything at outset: discovery, research, planning, your written recommendation, implementation and all the administration. It is 0.75% of the funds you invest or transfer, with a minimum of £2,500. The 0.75% applies to the first £2 million only, and zero above that sum.
Worked examples
£400,000 invested: £400,000 x 0.75% = £3,000.
£250,000 invested: £250,000 x 0.75% = £1,875. That is below our minimum, so the fee is £2,500.
£3,000,000 invested: the first £2,000,000 x 0.75% = £15,000, our maximum, and the remaining £1,000,000 is charged at zero. Total £15,000.
What you receive for it
An in-depth discussion of your objectives, resources and intentions, in person or online, for as long as you need. You will have a hundred questions.
A detailed, flexible financial plan and recommendation, with a lifetime cashflow forecast showing likely income, spending and values up to age 99. We test your spending against market crashes, different rates of return, inflation, annuities and a long life, and show you the alternatives side by side.
Your income projection runs month by month for up to ten years.
A portfolio researched for you alone, built to deliver the income that pays for the life you lead while managing volatility and inflation. Income always takes priority.
All the administration required in collating and tidying up assets: we do everything, including coordinating with accountants, solicitors or other advisers.
We track the time we spend so both of us can see the value. We never charge by the hour.
[6] Our ongoing fee: 1% a year
Our annual fee for supervision and review is 1% of the funds invested. As a percentage of your fund, the amount rises as it grows and falls if values fall.
Worked examples
For a fund of £400,000: £400,000 x 1% = £4,000 a year, which is £4,000 divided by 12 = £333.33 a month.
For a fund of £1,400,000: £1,400,000 x 1% = £14,000 a year.
Roughly half of that fee pays for regulation, compliance, levies, insurance and systems. The other half pays for your adviser and client manager, our research subsidiary and the training of your team.
What you receive for it
We monitor the underlying assets every working day, and run a cash and asset review for every portfolio every week;
we handle all the administration, so you do nothing: chasing providers, obtaining valuations, compiling payment histories, verifying details, executing transfers, arranging payments;
we provide a valuation report every six months, and your portfolio is online around the clock;
we produce a full annual update, reconciling all income and capital and refreshing your cashflow plan and income projection, month by month and year by year;
we place no limit on calls, online meetings or meetings in our office, subject only to being fair and reasonable. The first few years are the busiest, and we expect that.
[7] Who holds your money, and who is responsible
Never us. You never make an investment payment to Chancery Lane and we never hold client money. Your investments are held by trustees and custodians who are separately regulated by the FCA.
You are also paying for something easy to overlook: accountability. When we advise you, we keep responsibility and liability for that advice, and it does not expire when you sign the paperwork. Advice you can hold someone to account for costs more than information you cannot, and that is as it should be.
[8] Paying our fees, and VAT
VAT is not chargeable on intermediation, meaning work likely to lead to the arrangement of an investment. If VAT ever applies, we will tell you in advance.
Our fees are normally paid from your investments rather than your bank account. Fees paid from a pension can only relate to pension and retirement planning. Paying by deduction reduces the amount left invested, and we will talk that through with you first.
Before we give any advice, we add together every cost and charge payable, ours and everyone else’s, so you see the whole picture in one place. You will never have a charge from us that you did not agree in advance, and we provide you with an annual statement of what you have paid to us.
[9] Other costs
Your money always sits on a platform run by a product provider such as AJ Bell, Aviva or Standard Life, and their charge is usually between 0.15% and 0.25% a year. For that they act as the secure custodian of your money, handle tax within your pension and ISA, buy and sell as we instruct, give you and us online access and up-to-date valuations, manage the cash balances, and make payments to you when needed, including through PAYE for pension income.
The investments themselves may carry annual charges. Shares carry none, investment trusts are usually 0.35% to 0.65%, and trackers and ETFs can be as low as 0.07%. An investment trust employs experienced, qualified managers to deliver a specific mandate, whether that is income from UK companies, Asian debt, or growth companies that pay no income at all. Cheap trackers do the job where all you need is to follow the market.
We will always tell you the full annual charge, in pounds and pence, before anything is committed.
[10] Talk to us first, for free
If we cannot add value to your position, we will tell you - the best way to find out is a free introductory chat. Our clients are never locked in, and are free to leave whenever they wish. Call us on 020 7390 0670 or email hello@chancerylane.net. You can read the research behind our income-first approach at chancerylane.net.