How we are paid?

Our use of the internet has greatly reduced our running costs as this has meant reduced flights and lower administration expenses. We at Parmafey pass this saving onto our clients by obtaining the best deals possible.

You will never be invoiced for our time, we offer all advice completely free of charge and without obligation on your part. Should you take up our advice, this will normally mean you are opening some form of new investment account, or investing into an offshore fund manager, we are paid by these companies for making the introduction.

Financial advisers earn money through introducer’s fees from the companies that we recommend. If a client goes direct to the companies the same fees will be payable as part of the set up cost, with no guarantee of local contact. 99% of the time we are able to reduce such fees for clients and offer an alternative system of performance related fees tailored to each individual client’s needs.

Commissions paid to advisers are normally reflected in the product early encashment penalties or the bid to offer spread. We work extremely hard to ensure you receive access to the best financial institutions and fund managers at the best rates.

We prefer to receive performance related fees based on the amount of your investment. For example say you invested $100,000, this would normally result in a commission rebate or extra up front allocation of anywhere between 1% and 4% depending on the funds you invest in. In return for giving this discount we will charge a 1% fee pa as long as your annual return exceeds the targeted benchmark return. This benchmark return can vary depending on the risk ratio of the portfolio and is normally a maximum of 8%pa. Please note that not all financial institutions or fund managers pay commissions as high as this so the level of discounts will vary.

To understand commissions you must also understand charges. Obviously the companies who provide financial products and fund management services are not charities and they exist to make a profit. These companies rely on Independent financial advisers to sell their products, and as such pay a marketing fee or commission. In turn the companies who are generally offshore independent financial advisers need the commissions to cover their operational costs and pay their staff to provide ongoing servicing to their clients.

In general the system works and there is nothing wrong with your adviser making a commission, as long as he or she earns it? In this industry the commissions are paid up front and more often than not most investors never hear from their adviser after the first year. At Parmafey we will discuss with you at the beginning the various options that are available to you, so that you are able to choose the best way forward. Our aim is to build long term relationships.

To arrange a FREE initial consultation with one of our consultants please complete the online contact form and we will get back to you at your convenience? Click to arrange FREE consultation?