Fees or Commissions

fees or commissionsWith so much media coverage given to the debate on fees versus commissions in the financial services arena MedDen have positioned themselves to be at the forefront of the changes which will be implemented by the Financial Services Authority in 2012. We work on an agreed notional fee basis, whereby the cost of the advice will be made clear up front and we will help the clients understand which route will be best for them. In our opinion too many companies have taken the fee only route. Whilst fees clarify the costs incurred for the advice given fees are by no means the panacea, it is not always in the client’s interest to pay for advice this way.

Take an example of a £500 agreed fee for advice; if this relates to pension planning for a 40% taxpayer then you could pay this fee either directly or via the pensions contract;


Fee 'direct'

Fee via 'contract'

Cost of advice



Net cost to client*



Plus VAT



Total Cost



*Assuming higher rate tax payer

The fee basis in this example is by no means the optimal route, in fact the costs incurred for the advice are 100% higher and yet provide no additional benefits.

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MedDen Financial Services LLP. MedDen House, 3 Hanover Avenue, Leeds, West Yorkshire. LS3 1BG
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MedDen Financial Services LLP is Authorised and Regulated by the Financial Conduct Authority.
MedDen Financial Services LLP is entered on the Financial Services Register (www.fsa.gov.uk/register/) under reference 473375. MedDen Financial Services are registered in England & Wales, No. OC330966
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MedDen specialist financial advisers for medics and dentists