When you’re planning your ideal future, it’s important to go into the process with all the information you need.
What you envision for yourself will determine how you approach your plan, and we’re committed to supporting you through every season of your life.
So, whether your goal is to have a secure and fulfilling retirement, help family get on the property ladder, or all of the above, we’re here to help you reach your goals.
So, we wanted to discuss the three different ways we could help you develop or maintain your financial plan, depending on your level of need and knowledge. Here, find out the difference between execution, guidance, and advice.
Option 1: “Execution”, where you tell us what to do, and we do it
The execution service works if you completely understand your final goal and know exactly what you want to do with your money. This might be the option for you if you have all the details already outlined and simply need us to make it happen.
For a transaction to qualify as “execution only”, you’ll need to meet the following criteria:
- You must identify the specific account or investment vehicle you want to use. This could be a particular Individual Savings Account (ISA), self-invested personal pension (SIPP), or General Investment Account (GIA).
- You’ll need to stipulate the exact investment funds that need to be sold or purchased. This will include the fund name and, where applicable, the specific share class.
- You must provide the exact amount of capital to be deposited or withdrawn, as we can’t process ambiguous instructions at this level.
- You will need to explicitly confirm that you don’t need advice or recommendations from us about the transaction.
Our execution-only service might suit routine contributions and withdrawals where you’ve already worked with us to make an informed decision.
It’s important to note that this is not suitable for more complicated transactions, such as the transfer of entire product holdings to new providers or switches between different investment funds within your existing portfolio. Because these are more complex, they inherently require some level of guidance or advice to ensure they’re right for you and your overall financial plan.
An example of an execution only service might be:
“I want to contribute £10,000 to my AJ Bell SIPP, with these funds to be allocated to the same investment funds and proportions in my advice report from October 2024. I confirm that I do not require further advice on this transaction.”
Option 2: Informative support through “guidance”, where you ask for help and we give it
“Guidance” in this sense means we are giving you generic, factual, and technical information that is designed to increase your understanding of certain financial topics or rules.
It’s important to note that guidance is not advice, and this level of service doesn’t include personalised recommendations or an assessment of your specific circumstances.
Examples of information we would give as guidance could include:
- Providing details about tax rates and allowances relevant to investments and savings in general.
- Discussing different investment wrappers and financial products, as well as offering explanations of how they work.
- Reviewing general information regarding financial regulations that are relevant to you.
Guidance is designed to be informative, and you could receive it through various channels, including telephone conversations or through letters and leaflets.
It’s meant to empower you with the knowledge to potentially formulate your own decisions, but it does not mean we are giving you a recommendation.
An example of a guidance-only service might be:
“Could you please provide information on the current Capital Gains Tax rates and the annual exempt amount?”
This is a request for generic technical information. You might be able to find this online, but with our guidance, you can confirm it.
Option 3: Tailored strategies with “advice”, where we design a full financial plan specifically for you
“Advice” represents our most comprehensive and personalised service. Here, we would analyse your unique financial situation and discuss your goals and risk tolerance. This allows us to design bespoke recommendations that are suited to your unique needs.
This level of service typically involves:
- Specific suggestions and recommendations based on your needs and financial goals.
- Providing a detailed financial analysis, including potential tax liabilities and how different strategies could work on your portfolio.
- Offering clear and detailed explanations outlining the reasons behind our recommendations, ensuring you understand our advice and the potential results.
- Providing formal written documentation in a comprehensive report. This would summarise our advice, including the rationale, calculations, and potential risks.
Because the financial advice industry is heavily regulated, as it should be, this level of service requires a more extensive investigation. To make recommendations that are uniquely suited to you, we need a deeper understanding of your circumstances. This means we can carefully consider how different outcomes could affect you.
This might also involve internal compliance checks, which are there to ensure that the advice we’ve given is right for you.
Our founder and director, Ray Martin, provides this regulated advice. The ongoing fees you pay are directly linked to this advice, as it requires personalised expertise and continuous support.
It’s important to note that requests for advice on matters outside the agreed scope of our services may be subject to additional charges.
An example of an advice-led service might be:
“I want to withdraw £10,000 from my ISA. Which funds should I sell?”
This requires advice, not guidance. To choose the right funds to sell, we need to consider your overall investment strategy, the potential tax implications, and how your holdings are performing.
When in doubt, get in touch with us
We’re dedicated to providing you with the right level of support for your needs and helping you to navigate your financial journey with ease.
Understanding the distinctions between execution, guidance, and advice does two things:
- First, you’re able to engage with us in a way that works for you.
- Second, we’re able to provide a level of support that works perfectly for you.
If you’re ever uncertain about what you need or what best aligns with your current financial plan, please feel free to get in touch.
We’re here to help and are always on hand to answer any of your questions, no matter how big or small.
Email info@fourseasonsfp.com or call us on +44 (0) 13 7240 4417 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
The Financial Conduct Authority does not regulate tax planning.
