We are incredibly proud of the charging structure we have put in place at Nexus. First and foremost, which ever model you opt for (there are three to choose from), all fees and charges will be mutually agreed between you, the client, and us, that’s Nexus.
Historically, it has been commonplace for some advisers to charge for their advice by receiving a commission payment, generated through the sale of a particular product.
This system has risked biasing their advice and it has certainly led to accusations of bias.
If no money changes hands between the client and the adviser, has that advice been given free of charge? Of course not. But if it is the product provider – i.e. the fund manager, pension firm, insurance company, bank, building society or mortgage lender – paying the commission, then surely the adviser is working in the interests of those other firms, when in fact they ought to be working in the interests of you – their clients.
You see where we’re going with this…
At Nexus, we aim to clearly and firmly break the link between our recommendations and any payments from providers.
We offer a choice of three tiers of service – absolute wealth, alpha and beta – each with their own set of charges, which may be facilitated by the provider or wrap provider but it ultimately paid for by you.
At every step of the process you will know what you are paying and what you can expect in return.
When we supply our report, we charge an advice fee.
The next phase involves our implementation fee capped at 2.5 per cent.
Our service charter is generally charged at one per cent of your underlying assets annually. This may be taken as a one per cent charge from your underlying assets, with the payment facilitated by the product provider on a monthly basis (free of VAT). The money you would have handed over still comes out of your account, but via the provider, rather than directly.
You may prefer to pay your fee directly either monthly or as a lump sum in advance.
In addition, we also offer our clients the choice of paying an hourly rate for our advice and services.
For any work done in addition to that agreed in the service charter, a fee will be charged at a fixed rate. And don’t forget, we cap our fee levels, to eliminate any risk of product bias – we want to find the right product for you, not the right commission level for us.
Where providers still pay commission for example on insurance products, we offset that payment against the fees you pay and make sure all of this is fully disclosed.
Remember, at Nexus, we believe that price is what you pay, whereas value is what you receive.