What we do - Investment Basics
On 31st December 2012, the Financial Conduct Authority (FCA) introduced new rules governing the way you may receive advice on investment products.
Why are these changes being introduced?
The Retail Distribution Review (RDR), initiated by the FCA in 2006, represents the most fundamental reform of the UK retail financial services markets in the last 25 years.
The core goals of the RDR are to:
- Establish a fair and transparent charging system by abolishing the commissions received by financial advisers for advising on products such as savings plans, investment funds or private pension schemes
- Improve the quality of advice provided by advisers by requiring a higher level of qualification and ongoing professional development.
- Provide greater clarity on the services being provided by your adviser.
What do Grape Benefits offer?
All Advisers are required to state whether their advice is “Independent” or on a narrower set of possible investments, “Restricted” Grape Benefits offer Independent Advice.
We will endeavour to find the right investments for you after undertaking a fair and comprehensive analysis of the market.
This means we need to agree up-front the cost for our advice to ensure fair and transparent charging. We explicitly disclose our fees for providing advice and agree these with you before any advice is given.
Having a fee-based relationship increases the emphasis we place on the ongoing service you will receive although this has always been the cornerstone of our business.
Once we have met with our clients and determined what their objectives and goals are in terms of growth, Income or both. We can then set to work conducting relevant research and making recommendations of products and providers to meet these objectives. With any investment advice there needs to be a sound investment principle.
Many financial experts say that asset allocation is an important factor in determining returns for an investment portfolio. Asset allocation is based upon the principle that different assets perform differently in different market and economic conditions.
A fundamental justification for asset allocation is the notion that different asset classes offer returns that are not perfectly correlated, hence diversification reduces the overall risk of variability on returns for a given level of expected return.
All of our recommendations will take into account your attitude to risk and the asset allocation appropriate to that risk level. It is essential that as time passes and Markets alter, you re-assess the agreed level to maintain your preferred outcomes.
RISK WARNING: THE VALUE OF INVESTMENTS AND INCOME FROM THEM CAN GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.