3. WELCOME
Appointing a financial adviser is an impor-
tant decision, and for many people is the
first step towards securing their financial
future.
WHAT WE DO?
As independent financial advisers, our job is to make
your money work for you, whatever your situation or
your stage in life, so that you can live the way you want
to.As you would expect from a professional firm of
independent financial advisers, we have the depth and
breadth of knowledge and expertise to provide practical,
informed advice on all aspects of your financial affairs.
We understand that by appointing us as your
independent financial advisers you are placing your trust
in us. Our advisers are highly qualified and will always act
in your best interests.Among other things, they are
required to:
explain clearly the areas on which they advise and the•
services they offer
act in your best interests at all times and with total•
integrity
discuss and agree fees and payment options in advance,•
before undertaking any work you ask them to do.
We offer different levels of services, all of which have the
flexibility to be tailored to suit your particular
requirements and the complexity of your financial
circumstances.They are set out in this brochure and your
adviser will help you decide which is best for you.
WHO ARE McHARDY FINANCIAL
Operating as McHardy & Burnett in Aberdeen city
centre since 1987, and now known as McHardy Financial
in 2014 we have been offering corporate and
private clients a high level of personal service and
financial expertise in helping them to plan a secure
financial future. We aim to deliver a cohesive offering,
providing our clients with Financial Services, General
Insurance and Employee Benefits advice.
McHardy Financial offers independent wealth creation
and wealth management services lifestyle planning to
private individuals and comprehensive employee benefits
consultancy services to employers of all types and sizes.
Our team consists of qualified financial planners and
mortgage advisers backed up by a dedicated and
professional team of support staff. To find out more
about us and meet the team go to www.mchb.co.uk
WELCOME
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4. WELCOME
WELCOME
OUR ETHOS
We offer different levels of services, all of which have the flexibility to be
tailored to suit your particular requirements and the complexity of your
financial circumstances. They are set out in this brochure and your adviser
will help you decide which is best for you.
CONTENTS
The advice process explained 3
Three simple steps: initial consultation, report and implementation 4
On-going advice service options:Transactional,Transactional Plus, Priority and
Priority Plus 5
Our fees 6
Initial fees 7
Fees for on-going services 10
Fees for ad hoc services 11
Information about our services 12
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5. WELCOME
Taking financial advice can appear complicated.
In reality, dealing with a professional, independ-
ent adviser makes it a fairly straightforward
process, during which your adviser draws on
their expertise and experience to recom-
mend strategies that are suitable for you and
your circumstances, enabling you to make
informed decisions.
The process outlined below is explained in
further detail in this brochure. However, it is
useful to understand the main stages involved
in providing financial advice and the decisions
you will need to make.
OUR ADVICE PROCESS EXPLAINED
GATHER INFORMATION
At your initial consultation your adviser will
ask you about your current financial circum-
stances and arrangements and help you deter-
mine your financial objectives.
If we find you could benefit from financial
advice, you will need to decide if you wish
to proceed and, if you do, choose the type
of report you require and agree the ap-
propriate fees. An engagement letter will
be issued to you outlining your objectives
and give you an indication of fees
RESEARCH AND RECOMMEND
Your adviser will research the most suitable financial solu-
tions for you from all those available on the market, based
on the information you provided at the initial consultation
and as agreed with you. They will report on and recom-
mend actions and products based on the objectives you
agreed, and explain the associated implementation costs.
You will then need to decide
whether to go ahead with the
recommendations.
ONGOING ADVICE
Your adviser will ask you whether you would like to
receive independent financial advice on an ongoing
basis and, if you do, will explain the different services
we offer.
You will need to decide which, if any,
of our ongoing service propositions
suits you best and agree the appropri-
ate fee structure for providing this.
WHATYOUR ADVISER DOES WHATYOU WILL NEEDTO DECIDE
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6. WELCOME
WELCOME
THREE SIMPLE STEPS
INITIAL CONSULTATION
You will want to understand how McHardy Financial may be able to help you and whether you want
to appoint us as your financial advisers.
Your adviser will ask you about your circumstances, current financial position and your financial goals,
so they can understand the areas in which you may be able to benefit from advice.They also assess
your Attitude to Risk using industry-leading fact-finding and risk analysis methods, which will help
determine among other things which types of savings and investments may be suitable for you.
Your adviser will also explain the benefits of using our services and how we charge for them. Having
gathered this information from you and discussed your needs, your adviser will ask you whether you
want to proceed and, if you do, agree with you the type of report and recommendations you require
and explain the fees payable for our services, which are set out on pages six to eleven.
RECOMMENDATIONS
Your adviser will analyse all the information you supplied at your initial consultation and, based on
your discussions about your current circumstances and financial objectives, will provide you with a
written report focusing on the relevant specific issues.
This report will be an overview of your financial situation, a focused recommendation or, where
applicable, a comprehensive recommendation.
These may include a recommendation for the most suitable product, provider and, for investments,
fund or portfolio, chosen from all those available, for all the specific issues on which you have asked us
to advise. We will assess your financial circumstances and existing arrangements together with your
objectives and Attitude to Risk when making a recommendation.
IMPLEMENTATION
Once you have agreed the course of action to take we will implement our recommendation or
financial plan, liaising with product providers on your behalf, dealing with all the paperwork and
keeping you informed of progress until implementation is complete.You will need to provide us with
accurate personal details to facilitate this process.
This stage may involve putting in place new arrangements and transferring, terminating or selling
existing plans, policies, investments and other arrangements. It may involve signing additional
paperwork, for example, such asTrust arrangements to help with family or estate protection.
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2
3
4
7. WELCOME
ONGOING SUPPORT
As your life changes, so do your financial goals. Getting
married, moving home, having a family and
approaching retirement are just some of the things
that have an impact on your financial circumstances
and arrangements. Plus, with frequent changes to
legislation and market conditions, a financial plan can
become outdated surprisingly quickly.
That is why many people choose to appoint McHardy
Financial as their long-term financial advisers – they
want to know that an expert financial adviser is
keeping an eye on their financial arrangements and is
available whenever required.
Once your initial recommendations have been
implemented your adviser will ask you to choose the
type of service you would like us to provide in the
future.This is likely to depend on the value of your
investments, the number and type of holdings, and
your objectives, timeframes and personal preference.
We offer four service options:
REVIEW SERVICE
TRANSACTIONAL
Our Transactional service will suit
you if you require a one-off trans-
action and do not need on-going re-
views or financial advice.
You will receive our regular client
newsletter electronically. However,
we will not send you valuations, in-
formation about legislative or eco-
nomic changes, or provide you with
any further advice and you will not
normally have any further contact
with your adviser.
We would, of course, be pleased to
advise you on future issues for our
usual fees should the need arise and
you decide to contact us, for in-
stance if you would like to review
your portfolio or are approaching
retirement
TRANSACTIONAL PLUS
Our Transactional Plus service pro-
vides a reactive advice service with
annual updates.
In addition to the regular newsletter
you will receive an annual consoli-
dated portfolio valuation and a
“change of circumstances question-
naire”, and have access to our cus-
tomer care team.
Your adviser will contact you if the
questionnaire identifies a need for
action.
PRIORITY
Our Priority service will suit you if
you require on-going guidance, per-
haps about a specific issue, and wish
to build an on-going relationship
with a financial adviser.
This service includes:
Regular electronic client•
newsletter
Annual Review of your portfo-•
lio and update
Consolidated portfolio valua-•
tion statement
Asset allocation analysis in•
comparison with agreed bench-
mark
Fund performance analysis•
Rebalance of portfolio to•
benchmark
Implementation of appropriate•
changes
Unlimited telephone access to•
your adviser
Unlimited email communication•
with adviser
Unlimited access to your cus-•
tomer care team
Annual Face to Face meeting•
Liaison with other professional•
advisers
Assistance with financial paper-•
work
PRIORITY PLUS
Our Priority Plus service will suit
you if you require on-going guid-
ance and the complexity and/or
value of your portfolio is likely to
necessitate frequent reviews.
This service includes:
Regular hard copy of our•
newsletter
Annual and Interim Reports to•
review your portfolio and up-
date of your situation
On-going in-depth analysis of•
your portfolio
Unlimited telephone and email•
access to your adviser
Two face to face full review•
meetings per year
Supply of end of tax year infor-•
mation
Liaison with other professional•
advisers
Unlimited access to your cus-•
tomer care team
Fee-Free mortgage consulta-•
tion
Discounts for advice on top-•
ups to existing
investments/pensions.
Regular updates on the best•
rates for cash holdings should
you use a recommended cash
facility
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8. FEES
As professional advisers we charge fees for our services. Once you have agreed with your adviser the work
you would like us to undertake and discussed the costs involved, he or she will prepare an ‘engagement letter’
detailing the work to be undertaken on your behalf, and the cost of preparing and presenting a strategy report.
Our fees vary according to the complexity of your circumstances and objectives, the scope of the work re-
quired, the type and number of products we are implementing (e.g. investments, insurance, mortgages, etc.). In
addition, they take into account the regulatory responsibility we take for advice we give you.
Our fees are exempt fromVAT if you intend to take
out a financial product through us as a result of the
advice we give you. If you require advice only (i.e. if
you do not take out or intend to take out a financial
product as a result of our advice) our fees are sub-
ject toVAT at the prevailing rate.
THE APPLICABLE FEE CAN BE PAID DI-
RECTLY FROMYOU, OR,WHERE FEASIBLE,
FROMTHE PRODUCT RECOMMENDED.
All fees are payable on completion of the agreed
work.
YOU MAY CANCEL OR CHANGETHE SERVICEYOU RECEIVE FROM McHARDY
FINANCIAL AT ANYTIME BY SENDING AN EMAIL OR LETTER NOTIFYING US OFYOUR
DECISION. IFYOU DO CANCEL OR CHANGETHE SERVICE,WE WILL CHARGE A PRO
RATA FEE FOR WORK ALREADY UNDERTAKEN, OR INTHE CASE OF ANNUAL
AGREEMENTS,THE PROPORTION OFTHEYEARTHAT HAS ELAPSED.
For any normal queries and advice, we recommend that you contact your usual adviser in the first instance.
However, you can also contact our office – details are on the back of this brochure.
We may recommend that you take certain
actions, for example making a Will or setting up
a trust for inheritance tax planning,
This will require the services of other
professionals such as a solicitor or accountant.
Our Priority and Priority Plus services includes
referring you to such professionals if required.
The asset allocation (and therefore risk profile) of investments can change
surprisingly quickly, especially in volatile markets. We use market-leading
risk profiling to discover your attitude to investment risk, and industry
leading asset allocation modelling to ensure that your investments remain
in line with your risk profile. This is part of the ongoing investment process
within our Priority and Priority Plus services.
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9. INITIAL FEES
STAGE 1: INITIAL CONSULTATION:
We will provide you with a one hour initial consultation where the cost will be borne by McHardy Financial.
STAGE 2: REPORT AND RECOMMENDATIONS
COST FOR SERVICE:
INVESTMENT AMOUNT
Strategy Report
(depending on investable sum)
Fee:
Up to £11,999
£450
£12,000 - £49,999
£650
£50,000 - £199,999
£1,000
£200,000 +
£1,250
Additional Services:
Fee:
IHT Planning
From £300
Trust Planning
From £150
Review of Existing Products:
Fee
Investment Products:
£100 per policy plus
£10 per fund
Protection / Annuity
£50 each
Pension Review
Money Purchase (per policy) £100
Final Salary (per scheme) £200
Fees stated do not includeVAT. Please note that the above fees are exempt fromVAT if you take out a financial
product through us as a result of the advice we give you. If you require advice only (i.e. if you do not take out
or intend to take out a financial product as a result of our advice) the above fees are subject toVAT at the
prevailing rate.
EXAMPLE OF COSTS
Mr Client A is looking for advice with respect to three investment policies he currently holds. These hold a
total of eight funds. He is also looking for advice with respect to £50,000 he holds as cash on deposit. The
investments he currently holds have a total value of £75,000.
The costs for a report and recommendation are as follows:
SERVICE COST
Strategy Report £1,000
3 x Investment Product Review £300
8 x Fund Review £80
TOTAL COST OF REPORT & ADVICE £1,380
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10. INITIAL FEES (CONTINUED)
STAGE 3: IMPLEMENTATION
The fees for implementing our recommendations are based on the amount to be invested, however, fees may
vary according to the complexity and scope of the work required and the type of products we are
implementing (e.g. investments, pensions, insurance, mortgages).
Your adviser will agree all fees with you before implementing any of the recommendations.At our discretion
we may offset fees paid, or due, for stage two against the implementation fee. Our standard implementation
fees are as follows:
Investments and pensions
Lump sums (including transfers):
Up to £20,000:
Next £80,000:
Next £100,000:
Next £300,000:
Next £500,000:
Regular contributions (new plans
and top-ups)
(Percentage of Total Investment/Contribution)
5.00%
3.00%
1.50%
1.00%
0.50%
These fees are subject to our minimum of £450 for im-
plementation.
Example: For example, for a lump sum investment of
£250,000 our implementation fee will be £5,400 (2.16%).
This is made up of 5% for £20,000, 3% for £80,000, 1.5%
for £100,000 and 1.0% for £50,000.
Up to 25% of the first year’s premiums subject to a mini-
mum fee of £450.
Example: For example, for a regular investment of £250
per month our implementation fee will be £750. This is
made up of 25% of the first year’s premiums.
Drawdown pension We charge the same as the thresholds noted above under
‘Investments and Pensions, subject to a minimum of £800
for implementation.
Insurance-based products From £450.
We may receive commission from product providers for
insurance-based products. If this is the case we will dis-
close this to you and, at our discretion, we may waive or
reduce our usual insurance implementation fee.
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11. INITIAL FEES (CONTINUED)
STAGE 3: IMPLEMENTATION (CONTINUED)
Annuity purchases Our fee for setting up a standard Pension Annuity or
similar contract is based on the purchase price as follows:
Up to £50,000 3.00%
Next £50,000 2.00%
Over £100,000 1.00%
subject to a minimum fee of £450. For Enhanced
Annuities or similar contracts our minimum fee is £850.
Mortgages
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Our fee for researching the market and recommending a
suitable mortgage is £450. In addition, on
completion of the arrangements for the mortgage we will
receive a fee from the chosen lender, typically this will be
0.35% of the mortgage amount for residential mortgages
and 0.5% of the mortgage amount for buy to let
mortgages. This will be disclosed to you before you
decide to proceed. For example, based on a mortgage of
£150,000, the fee would be £525 for a residential
mortgage and £750 for a buy to let mortgage.
12. FEES FOR ONGOING SERVICES
Services
Priority
Plus Priority
Transactional
Plus Transactional
Newsletter
Strategy review meetings
Review of your attitude to risk
Free Mortgage Consultation
Annual Fee (taken as a percentage of funds
under management)
Investment Level: Up to £100,000
Up to £250,000
Up to £500,000
Up to £1 million
£1 million Plus
Half-Yearly
Review
Meeting
Annual
Review
Meeting
1.00%
0.80%
0.60%
0.50%
Minimum
Fee of £750
per annum
1.00%
0.75%
0.65%
0.50%
0.40%
Minimum
Fee of £500
per annum
0.5% for all
funds under
manage-
ment
Minimum
Fee of £150
per annum
Portfolio summary and valuation
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Liaison with other professional advisers
13. FEES FOR ONGOING SERVICES
For example, our annual fee for our Priority service for a £50,000 investment would
be £500 based on a charge of 1.0% of the sum invested. An investment of £150,000,
the annual charge would be £1,200 on an annual charge of 0.8% of the sum invested.
Additional fees will apply to achieve the minimum fee applicable to each service.
Fees stated do not includeVAT. Please note that the above fees may be subject toVAT at the prevailing rate.
However, they will be exempt fromVAT if you take out a new financial product through us or alter an existing
one as a result of our recommendations.
We will review your funds under management at your Annual Review. Should this
take you into an alternative charging bracket we will amend your fees accordingly.
We will also take into account any further investment made at any time.
FEES FOR AD HOC SERVICES
We would be pleased to provide any of the services listed below for an additional fee if they are not already
included in your service agreement.
Portfolio summary and valuation
We will send you a written summary and valuation of your
investments and current holdings.
Strategy review meeting, including financial review
Your adviser will carry out a comprehensive review of your
circumstances, arrangements and objectives. They will reassess your
strategy and attitude to risk, to ensure that your arrangements
continue to meet your objectives. They will recommend any changes
that may be required, recommending products chosen from all those
available in the market. A review of your portfolio is included in this
service*.
From £125
* If as a result of a review new plans are required, standard implementations fees will apply.
Portfolio review
Your adviser will review your current plans, policies, investments
and other arrangements to ensure that they are still competitive
and appropriate, and are on track to meet your objectives. This
includes a review of the performance of your investments and
recommending any changes that may be required*.
From £250
From £600
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14. INFORMATION ABOUT OUR SERVICES
ARE WE FULLY INDEPENDENT?
Yes, importantly, we provide a full Independent Advice service.
This means that we will advise and make a recommendation for you after we have assessed your needs, based
on a comprehensive and fair analysis of the market.We have access to the widest possible range of products
and companies.
ARE WE REGULATED?
Yes.We are authorised and regulated by the Financial Conduct Authority (FCA) and you are protected by
the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS).
Please see ourTerms and Conditions of business for further information.
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BESPOKE SERVICES
We aim to build lasting relationships with clients so that they can relax knowing that we will tailor individual,
high quality solutions to meet their needs. Each client is treated individually with a bespoke plan tailored to
meet their needs and aspirations.
We aim to provide a personal working relationship with each and every one of our clients, to give a wider
understanding of the opportunities and possibilities available.
ONGOING FINANCIAL REVIEWS
We believe that ongoing advice is essential.The frequency of reviews and meetings will depend on your needs
and objectives. We will discuss these with you and help you to decide which one best suits your requirements.
As part of our review services, for clients with pension and investment funds, our service provides a bespoke
portfolio that meets your specific circumstances and requirements, and matches your tolerance for investment
risk.When we meet with you we will then review your current needs and the performance of the portfolio,
and if necessary re-balance your portfolio to ensure it remains in line with your tolerance for investment risk
and your objectives. For example, if you have made good gains, you may want to protect some of those gains,
or if you are nearing retirement, you may want to move funds into a lower risk environment.
‘AD-HOC’ SERVICES
Clients can request ‘ad-hoc’ services at any time, such as additional meetings, telephone query handling,
additional documentation, valuation reports, or simply to ask us to process a transaction on your behalf.
15. OTHER IMPORTANT INFORMATION
TERMS AND CONDITIONS OF BUSINESS
Before we proceed with any service, we will give you ourTerms and Conditions of Business, which you should
read carefully.
ENGAGEMENT LETTER
Before we proceed with any service that will require you to pay us a fee, we will detail the fee due as
accurately as we can.We will use an Engagement Letter for this purpose and we will ask you to sign a copy
before we proceed further.This is so that we can make a clear and transparent disclosure of fees due in ad-
vance of any required payment. In some circumstances we will not know exactly the complexity of your
circumstances until some research is carried out. When an estimated fee is quoted in the Engagement Letter
the specific fee will be provided in the Recommendations Report. Again, we will ask you to sign a copy before
we proceed further.
VALUE ADDEDTAX (VAT)
The majority of our services are not subject toVAT. However, where we provide you with a pure advisory and
consultancy service, where there is no reasonable expectation that the advice will result in a recommendation
to transact a financial product or to invest funds, thenVAT will be charged in addition to our fee at the rate
prevailing at the time the fees are charged.
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16. Registered in Scotland: SC105200
McHardy Financial is the trading name of McHardy Financial
Limited and registered in Scotland.
We are authorised and regulated by the Financial Conduct
Authority.
McHardy Financial
Independent Financial Advisers
Aberdeen:
13 Bon Accord Crescent
Aberdeen
AB11 6DE
Telephone: 01224 578250
Facsimile: 01224 573583
Dunfermline:
Viewfield House
Castle Business Centre
Queensferry Road
Dunfermline
KY11 8NT
Telephone: 01383 623300
Facsimile: 01383 624948
Email: enquiries@mchb.co.uk
www.mchb.co.uk
MF Client Brochure August 2014
