about the cost of our services

Stratton Annette’s Limited

The Dutch Barn

Unit 25, The Steadings Business Centre

Maisemore, Gloucester, GL2 8EY

1. The Financial Services Authority (FSA)

The FSA is the independent regulator of financial services. It requires us to give you this document when advising on some savings and investments. You may use this information to compare value for money, to shop around and to decide which firm to use.

2. Our services

The first part of our unique “Wealth Management Process” is the Discovery Stage, for which there is a fixed fee. This consists of the Lifetime Focuser and Discovery Meeting. These are designed to help you clarify your thoughts, plans and objectives for the coming years and to overview strategies to achieve them.

The “Wealth Management Plan” stage, for which there is a fixed fee, will develop solutions and selected implementation strategies to achieve your objectives. It will include a full breakdown of the fees involved to implement the recommended strategies.

3. What are your payment options?

Not all firms charge for advice in the same way. We will discuss your payment options with you and answer any questions you have. We will not charge you anything until you have agreed how we are to be paid. We have ticked the payment options we offer.

Paying by fee. Whether you buy a product or not, you will pay us a fee for our advice and services. If we also receive commission from the product provider when you buy a product, we will pass on the full value of that commission to you in one or more ways. For example, we could reduce our fee; or reduce your product charges; or increase your investment amount; or refund the commission to you.

Paying by commission (or product charges). If you buy a financial product, we will normally receive commission on the sale from the product provider. Although you pay nothing up front, that does not mean our service is free. You still pay us indirectly through product charges. Product charges pay for the product provider’s own costs and any commission. These charges reduce the amount left for investment. If you buy direct, the product charges could be the same as when buying through an adviser, or they could be higher or lower. We will tell you how much the commission will be before you complete an investment, but you may ask for this information earlier.

Paying by a combination of commission and fee. In some circumstances, we also charge a fee on top of any commission we might receive.

4. How much might our services cost?

We will agree the rate we will charge before beginning work. We will tell you if you have to pay VAT.

The following are typical charges:

The Discovery Stage * £187 + VAT

The Wealth Management Plan * £237 - £1487 + VAT

The Planning Meeting * £187 + VAT

The Client Relationship*: Annual Retainer £397 + VAT per annum or £37 + VAT

per month plus 1% of investments arranged

Quarterly Retainer £197 + VAT per quarter or £73 + VAT per

month plus 1% of investments arranged

The Customer Relationship: 0.5% of investments arranged

Arrangement of Investments: 3.47% of the first £200,000 invested 2.87% of the next £250,000 invested 2.47% of the next £280,000 invested 2.27% of the next £270,000 invested 1.4% of all further investments

Arrangements of products involving Insurance: £500 - £15,000

There may be other fees associated with the implementation of recommendations by one of the other companies within the Stratton Group. We will always advise you of these, and agree them with you prior to work commencing. Those processes marked with * may, in some circumstances not be regulated by the Financial Services Authority.

If you choose the combination of commission and fee option

We will charge you a combination of fees and commission. The actual amounts will depend on the service provided to you, but will not exceed the total of the maximum commissions set out below.

If you choose the commission option

Tables 1 and 2 show examples of the amounts of commission we could receive (or the equivalent we earn through product charges) and compare those amounts with the market average (see notes 1 & 2 at the end of this section 4).

The amounts vary according to: the type of product, the amount you invest, and (sometimes) how long you invest for, or your age when you start the product. We will confirm the actual amount to you before you buy a product.

Table 1 - Commission if you invest monthly

Products

Example term or age

Comparison of costs

Example based on £100 per month

Our maximum

Market average

This shows the maximum costs of our sales and advice for a monthly investment or premium of £100, ignoring any changes in fund value

Savings and investments

Collective investments (e.g. unit trusts)

Any

4% of all payments plus 1% of your fund value each year from year 2

2.3% of all payments plus 0.5% of your fund value each year from year 2

£48.00 each year plus £12.00 in year 2, £18.00 in year 3, and so on (The actual amount in later years will vary in line with your fund value)

Endowments

10 Year Term

32% of each of the first 12 month's payments plus 2.5% of all payments from month 17

35.9% of each of the first 12 month's payments plus 2.5% of all payments from month 17

£384.00 spread evenly over the first 12 months plus £30.00 each year from month 17

Protection

Whole of life assurance

Age 40

112.6% of each of the first 12 month's payments plus 0.3% of all payments from month 49

110.3% of each of the first 12 month's payments plus 0.3% of all payments from month 49

£1351.20 spread evenly over the first 12 months plus £3.60 each year from month 49

Saving for retirement

Personal and Stakeholder pensions

25 Year Term

36.6% of each of the first 27 month's payments

18.5% of each of the first 27 month's payments

£988.20 spread evenly over the first 27 months

10 Year Term

6% of all payments

5% of all payments

£72.00 each year

Products

Example term or age

Comparison of costs

Example based on

£10,000 lump sum

Our maximum

Market average

This shows the maximum costs of our sales and advice for a lump sum investment of £10000, ignoring any changes in fund value

Savings and investments

Collective investments (e.g. unit trusts)

Any

4% of the amount you invest plus 1% of your fund value each year from year 2

1.8% of the amount you invest plus 0.5% of your fund value each year from year 2

£400.00 plus £100.00 each year from year 2 (The actual amount in later years will vary in line with your fund value)

Investment bonds

Any

4.5% of the amount you invest plus 1% of your fund value each year from year 2

3% of the amount you invest plus 0.5% of your fund value each year from year 2

£450.00 plus £100.00 each year from year 2 (The actual amount in later years will vary in line with your fund value)

Saving for retirement

Personal and Stakeholder pensions

Any

6% of the amount you invest

5.3% of the amount you invest

£600.00

Personal Pension Schemes

Not all types of personal pension scheme are included in the information above about commissions. Instead only the more common types are included, and schemes such as SIPP’s are not. Before we start advising you, we will inform you of how much we could be paid if we do recommend one of these produces to you.

You can also ask us about commission we might receive on underlying investments we recommend you hold within a SIPP if not contained in the information above.

At retirement

Annuities

Any

2% of the amount you invest

1.3% of the amount you invest

£200.00

Income drawdown

Any

3% of the amount you invest plus 1% of your fund value each year from year 2

2.2% of the amount you invest plus 0.5% of your fund value each year from year 2

£300.00 plus £100.00 each year from year 2 (The actual amount in later years will vary in line with your fund value)

Notes:

1. The market average figures are calculated by the FSA using actual data from a representative sample of regulated firms and are shown in a way that you may compare with our own maximum rates. The market average figures will be updated by the FSA from time to time based on new data.

2. Where a firm sells its own products it must calculate its figures according to FSA guidelines.

5. Further information

If you need any more help or information

· Ask your adviser; or

· Visit www.fsa.gov.uk/consumer.