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SSAS
(This template should only be used as a basic guideline)
Dear [Salutation]
Further to our meeting of [DATE], I am now writing to confirm the outcome of our
discussions.
My advice is based on the details you provided at our meeting. It is important that if you
disagree with anything I’ve written here, or you have any questions about the information
in this report, that you contact me as soon as possible.
You will recall I provided you with a copy of my [list documents issued e.g. Terms of
Business Letter] on [DATE] and that you have placed no restrictions on the type of
products or markets where you require advice. I confirm that I am authorised to advise on
the areas covered within this letter.
Optional - where a client has refused to provide all information:
You did not wish to disclose all details relating to your circumstances. This was because
[INSERT REASON]. I have proceeded on the basis of the information provided. We
agreed that this was acceptable given that [INSERT REASON FOR PROCEEDING
WITHOUT INFORMATION]. However, you should be aware that my recommendations
may have differed if I had been aware of all your personal and financial circumstances and
that any information not disclosed could affect how appropriate the advice provided is for
you. We discussed how the fact that you did not wish to disclose information about
[INSERT DETAILS] might affect our ability to assess your capacity for financial loss.
You understood this but still wanted to proceed without disclosing it for the reasons
confirmed in this paragraph.
Optional – where a client has asked to restrict advice to a particular area:
You instructed me to specifically limit my advice to [INSERT AREAS] and I have acted
accordingly. I have, therefore, only obtained the necessary information from you to advise
on the above area. You should be aware that my recommendations may have differed if I
had undertaken a full review of your financial circumstances.
Background
You are currently [insert any relevant background information on client e.g. age,
marital status, financial situation, specifically including any relevant financial
services experience or qualifications].
We discussed your understanding of financial services products, with reference to
previous experience of advice received and products purchased, and established that you
have [no knowledge of investments whatsoever, as this is your first investment/
have a reasonable knowledge of investments, as you have previously purchased
investments and/or pension contracts/ have a strong knowledge of investments,
with a range of investment or pension contracts, and take an active interest in
following investment markets and reviewing your financial plans.]
We discussed market fluctuations, and how these might generate growth or income within
your investments, and also how exposure to risk means that you can lose all or part of
your investment. You [have/have not] been comfortable with fluctuations in the value of
your investments in the past.
Your financial goals, needs and priorities
During our meeting we discussed various aspects of your personal and financial situation,
and we agreed that at the present time, your main needs and priorities are:
Financial Goal
Priority
Starts
Finishes
Value (per
annum)
*Include where not all of client’s needs met
Whilst we would like to address all of your financial needs over time, at this stage it was
necessary to prioritise which of your needs we should address immediately. We discussed
which needs were most important to you, and considered the amount of income and/or
capital required to meet these objectives. For this reason we decided that (insert
objective/s not addressed) would be reviewed at a later date because (insert reason
and intended review date(s)).
We agreed that you would retain an emergency fund/savings of [INSERT AMOUNT].
Objectives
During our meeting we discussed various aspects of your personal and financial situation.
At the present time, your prime objective is to make suitable provision for your
retirement, whilst at the same time allowing you as much investment freedom as
possible.
As a Company Director you wanted to consider the most flexible and tax efficient
means of investing for retirement at your disposal.
Points to Consider (where funds are arising from a transfer)
In undertaking this transfer I would like to draw your attention to the following:

Exit Penalties – if your existing benefits are transferred a penalty will/will not
apply. The penalty will amount to (£X)

Charges – an initial charge will/will not apply on the new contract. The initial
charge is (X%) and will have the effect of reducing your transfer value from (£X) to
(£Y). There is an annual management charge of (X%) compared to (Y%) under
your existing plan. Additionally a policy fee of (£X p.m/p.a) will apply compared to
(£Y p.m/p.a).
The effect of these charges can be seen in the accompanying illustrations which
show the alternative positions of a) continuing with your existing provider and b)
transferring to a new arrangement. (NOTE TO ADVISER: the accompanying
illustrations must endeavour to highlight a true comparison of the transfer, to
demonstrate for example the additional costs associated with external funds)

Fund Selection – due to your current circumstances you wish to invest in funds that
are more aligned to your requirements. I would point out that your current provider
does/does not provide access to such funds.

Guaranteed Annuity Rates – your existing policy does not offer/offers these
valuable contract terms. The basis of the guarantee is as follows (state basis and
qualifying conditions). If we compare the guaranteed rate to current market rates
the former will produce an income that is approximately X% higher than the latter.
Giving up this valuable benefit should therefore be considered very carefully.

Performance – there is no guarantee that by transferring your ultimate benefits will
be greater than had they remained with your existing provider.

Consolidation – in undertaking a consolidation of your existing pensions to allow for
simplified administration in future, the overall cost [is/is not] higher. The nature of
the charging structure is outlined above.

Please remember that transferring pension providers can be a lengthy process, the
existing and new fund prices may fluctuate according to market conditions and that
a loss may be suffered as a result.
Attitude to Risk
I explained how, when making financial provision to fulfil this/these objective(s), the
degree of risk you are willing and able to take for each one would be a major factor in
considering the most appropriate choice of product. Your ability to cope with a loss in
relation to the capital invested was also considered during our discussions. Specifically we
discussed the effect the loss of any capital invested would have on your standard of living
and we have taken this into account in our recommendations
We established that your attitude to risk could realistically be described as
[Cautious/Balanced/Speculative].
Insert appropriate definition
A Cash Only investor is unwilling to take any risk of capital loss (other than a potential
failure to keep pace with inflation) and would not feel comfortable if their capital fell in
value.
A Low Risk Investor is looking for an investment where the value of their capital should not
fall in the short term and aims to produce returns that are comparable with those from a
high street deposit account, but have the potential for some long term growth. They would
feel very uncomfortable if their investment rose and fell in value very quickly.
A Low / Medium Risk Investor is looking for an investment which, while giving some
potential for real returns, aims to produce returns that are at least as good as those from a
high street deposit account. A high level of security of their capital is a priority. Whilst
recognising that investment values will change, they would feel uncomfortable if their
investments rose and fell in value very rapidly.
A Balacned Risk Investor is looking for a balance of risk and reward, and whilst seeking
higher returns than might be obtained from a deposit account, recognises that this brings
with it a higher level of risk and that the value of their investment may fluctuate in the short
term. They would feel uncomfortable if the overall value of their investments were to fall
significantly over a short period and would not be happy to see their capital eroded.
A Balanced / Speculative Risk Investor is generally market aware and understands and is
willing to accept a higher level of risk in return for the potential for higher returns in the
longer term. They recognise that this may result in the value of their portfolio fluctuating,
possibly significantly, in the short term.
An Speculative Risk Investor is willing to accept a much higher level of risk in return for the
potential for higher returns in the longer term. They recognise that this may result in the
value of their portfolio fluctuating, possibly significantly, in the short term. They are aware
that the risks are such that a significant percentage of the capital sum could be lost.
During our discussions I explained to you that all investments carry some form of risk and
you confirmed you understood this. While you would prefer not to make any loss on your
investments, as I explained, there is always a possibility that losses may occur. We
discussed your “capacity for loss”. By “capacity for loss” we mean your ability to cope
financially with any falls in the value of your investment, particularly if those falls would
seriously affect your standard of living.
During our discussions you indicated that, for this investment, you would have a capacity
for loss of around [x]. This is an indication of the amount you could afford to lose if markets
etc. do not perform as anticipated. You confirmed that you could afford to lose this amount
without it seriously affecting your standard of living. You also confirmed that you have
sufficient emergency/liquid funds.
My investment recommendation takes into account our discussions around capacity for
loss and your indication of how much you could afford to lose as highlighted above. Please
note that there is always a possibility that this amount of loss could be exceeded. You
confirmed you understood this.
Recommendation
We discussed the various ways you could achieve your present objective(s) as
outlined above. I recommend that you consider a Small Self-Administered Scheme
offered by (provider).
It is worthwhile outlining the product features of the contract recommended to demonstrate
why it is suitable to your current circumstances and stated objectives, which I outlined
earlier.
A Small Self-Administered Scheme (SSAS) is an occupational pension scheme which is
subject to the normal rules and regulations for registered pension schemes, but offers
greater flexibility and freedom of choice over the types of investment it can make.
As we discussed there are also generous tax concessions afforded to a SSAS which are
advantageous to both a company and its directors. These can be used to develop a highly
effective and coordinated approach to minimising corporate and personal taxation.
Contribution Levels and Benefits

Given the many tax advantages that are available with regard to funding a pension
plan there are limits to the contributions that can be paid. Employees are able to
make contributions of up to the greater of £3,600 or 100% of their annual earnings
to all of their pensions each tax year.

However, where the total employer and/or employee contribution exceeds the
Annual Allowance a tax charge will apply. Depending on your taxable income the
excess pension savings can be charged to tax in whole or in part at 45%, 40% or
20%.. However it may be possible for contributions in excess of the Annual
Allowance to be paid in some circumstances under the rules which allow unused
Annual Allowance from the 3 previous tax years to be brought forward and added
to the current year’s Annual Allowance.

Contributions to pension plans generate direct tax savings. Employee contributions
are made net of basic rate tax relief, which means that each employee will only
actually contribute £80 net for every £100 of contributions paid. Higher and
additional rate taxpayers likewise make contributions net of basic rate tax and can
then claim additional relief via their Inspector of Taxes/Self Assessment return.

Employer contributions attract Corporation Tax relief as long as they are made
‘wholly and exclusively’ for the purposes of the business.

Pension contributions once made will grow in funds where there is no liability to
tax on capital gains and where all forms of investment income (except dividends)
are also tax free.
Members are able to access their pension funds from age 55 and have the option to take
up to 25% of the fund as a tax free cash lump sum. There is now no upper age limit by
which retirement benefits must be taken. If the total value of a member’s pension benefits
exceeds the “Lifetime Allowance” the excess will be subject to a tax charge of up to 55%.
Payment on death
If you die before age 75 than benefits paid to your surviving spouse / civil partner or other
nominated beneficiaries will normally be free from tax (up to the Lifetime Allowance). If
death occurs after age 75 then tax will become due at the beneficiaries marginal rate of
tax.
Investments
Most types of conventional investments are freely permitted including quoted stocks and
shares, unit trusts, insurance policies, commercial property and employer related
investments or loans, but there are some restrictions designed solely to prevent abuse.
Any SSAS holding prohibited assets directly or indirectly will have all tax advantages
removed which will broadly mean that it is at least no more advantageous to hold such
assets in a pension scheme than it is to hold them personally. Prohibited assets include
direct or indirect investment in residential property and certain other assets such as fine
wines, classic cars and art & antiques.
If a SSAS directly or indirectly purchases a prohibited asset the purchase will be subject to
an “unauthorised member payments charge”. This will recoup all tax relief given on the
amounts used to purchase the asset. This means that:




the member will be subject to an income tax charge at 40% on the value of the
prohibited asset
the scheme administrator will become liable to the scheme sanction charge, which
will usually be a net amount of 15% of the value of the asset
if the set limits are exceeded the cost of the asset may also be subject to the
unauthorised payments surcharge, which is a further charge on the scheme
member of 15% of the value of the asset
if the value of the prohibited asset exceeds 25% of the value of the pension
scheme’s assets, the scheme may be de-registered which would lead to a tax
charge on the scheme administrator on the value of the scheme assets at the rate
of 40%
Loans and Borrowing
The trustees of the SSAS may make loans to the employer, but not the members, subject
to certain conditions as detailed below:





The loan may not exceed 50% of the value of the scheme assets at the date the
loan is granted
It must be secured as a first charge on the assets
It must carry a minimum interest rate (1% over the average base rate of the six
main clearing banks)
It must last for less than five years (with the possibility of a roll over loan, subject to
certain conditions) and
It must be repaid by equal annual instalments
The total loans to a pension scheme for any purpose will be limited to 50% of the net
scheme assets before the loan.
A SSAS will be able to borrow for any legitimate purpose intended to further the aims of
the scheme and such borrowing will be limited to 50% of the scheme’s net assets at that
time.
Workplace Pension Reforms / Auto enrolment and National Employment Savings
Trust (NEST)
NEST is the name of the new national workplace pension scheme that started in 2012 and
is designed to meet the needs of low-to-moderate earners and their employers. NEST is
one of the schemes employers can use to fulfil new duties under the workplace pension
reforms which began to take effect from October 2012. The Government intends that
between 2012 and 2018 all employers will have to provide a workplace pension (either
using NEST or a qualifying alternative), automatically enrol all of their employees who
meet certain criteria and contribute a minimum of 3% of salary. Employers are being
phased in to their new duties between October 2012 and early 2018 as are the minimum
employer contribution which will eventually rise to 3% of salary (between a lower and
upper limit) with a minimum total contribution of 8% of salary.
NEST is intended to be a low cost, easy to use, online pension scheme open to any
employer.
It is therefore important that any arrangements made today are reviewed regularly in the
light of changing circumstances/legislation.
Pension Credit
Pension Credit is a State benefit that provides additional income to pensioners on a means
tested basis. It consists of two parts (people might be eligible for one or both elements):
the guarantee credit, available from the current female State Pension Age, which tops up
the weekly basic state pension to a prescribed level and the savings credit, available from
age 65, which has been introduced as a reward for those who make modest additional
savings.
Pension Credit is a means-tested benefit, whereby amounts of capital are converted into
‘income’. All personal and occupational pension benefits, as well as lump sum
investments (such as ISAs, Bonds, Unit Trusts) would be included, and it is virtually
impossible to be sure of the fund values and resulting pension levels in advance.
An individual with ‘income’ including state pension above the threshold would not be
entitled to Pension Credit. This means that, in some circumstances, individuals may only
be slightly better off in retirement than if they had made no additional provision.
We have no way of knowing what your income/savings will be at the point of retirement, or
indeed the qualifying criteria at the time (since governments over the years have, and will
no doubt continue to, change benefit levels and structures) and therefore cannot ascertain
whether the Pension Credit will work for or against you.
Turning then to my specific recommendation:
Term
In discussing your objectives it was appropriate to consider a contract with a term
of (X) years designed to coincide with your intended retirement age of (X)
Level of contribution
Having considered the cash flow of the company we agreed that a contribution of
(£) was affordable. This contribution was selected on the basis that it was the
maximum contribution that you wished to contribute to meet your objectives.
Fund/investment options
In view of your attitude to risk and specific objectives at this time, I would
recommend that the following fund(s) and investment options are utilised:
(Detail funds and options)
Optional - if asset allocation used
Asset allocation
Asset allocation is the practice of diversifying assets between different asset classes.
Asset allocation has been recognized as a very important part of the process of building a
portfolio. In fact, a number of studies have found that the decision as to how to divide up a
portfolio into several classes is more important than the process of choosing the actual
stocks, bonds, and funds that are owned. Your model asset allocation will be determined
by the amount of risk you are prepared to accept and also the amount of time you are able
to let your investment grow. To assist us in the process of asset allocation we select the
most appropriate ‘model’ asset allocation for you from a series of standard models
developed by [insert name of model provider]. It is important that your portfolio is
monitored and reviewed on an ongoing basis to ensure that it remains in line with this
‘model’.
Our recommended asset allocation for a [Cautious/Balanced/Speculative].investor over
a [medium/long] term period is attached with this letter.
The funds recommended below are designed to fit your model asset allocation and are
based on an assessment of [your entire portfolio of investments/purely the monies
being invested, and do not take into account your existing investments].
NB If any change to the recommended asset allocation takes place, this must be
qualified as to why
Fund Selection
I selected the following funds having considered your attitude to risk [and model asset
allocation], as detailed above. Details on each fund and the investment methodology of
the fund managers is contained within Key Features Document and product literature
presented to you previously.
Fund Name
Fund Manager
Sector
% Invested
Please be aware that there may be occasions when an individual fund or funds may have
a higher risk rating than your overall stated attitude to risk. If this is the case, then the
overall risk rating applied to all of the combined funds being recommended is still designed
to meet your stated tolerance. I explained this during our meeting and you were
comfortable with this approach.
Optional – if External Funds used
As part of my recommendation I have provided you with access to externally managed
funds. This approach was attractive to you because [insert reason]. I also explained that
higher charges can have an effect on investment performance. In essence, a fund will
need to perform better in order to cover the increased charges. You confirmed that these
higher charges were acceptable to you and that you understood the possible effect of the
higher charges on investment performance, especially in a low inflation/low return
environment. You confirmed that you were keen to gain access to the wider investment
expertise that such funds offer.
Optional - if Manager of Managers used
I have recommended [Fund Name], which is a “Manager of Managers” fund. As
discussed, this provides the additional benefit of a managed exposure to the investment
expertise of some of the world’s leading investment management firms. This approach
was attractive to you because [insert reason]. As we discussed, the level of management
charges applicable to such funds tends to be higher than other funds. The charges are set
out clearly in the enclosed [Key Features Document/Fund Sheet] but for reasons of
clarity are itemised again below.
[Detail all charges applicable to the fund, including any stamp duty and dealing
charges.]
I also explained that higher charges can have an effect on investment performance. In
essence, a fund will need to perform better in order to cover the increased charges. You
confirmed that these higher charges were acceptable to you and that you understood the
possible effect of the higher charges on investment performance. You confirmed that you
were keen to gain access to the additional investment expertise that such funds offer,
although improved investment performance is not guaranteed.
We also ran through other options such as [insert details e.g. direct investment into a
portfolio of funds or Fund of Funds]. However, for the reasons set out above, we
agreed that it would be appropriate for you to access the Manager of Managers expertise.
Optional - if Fund of Funds used
I have recommended [Fund Name], which is a “Fund of Funds”. As discussed, this
provides the additional benefit of a managed exposure to the investment expertise of some
of the world’s leading investment management firms. This approach was attractive to you
because [insert reason]. As we discussed, the level of management charges applicable
to such funds tends to be higher than other funds.
The charges are set out clearly in the enclosed [Key Features Document/Fund Sheet]
but for reasons of clarity are itemised again below.
[Detail all charges applicable to the fund, including any stamp duty and dealing
charges.]
I also explained that higher charges can have an effect on investment performance. In
essence, a fund will need to perform better in order to cover the increased charges. You
confirmed that these higher charges were acceptable to you and that you understood the
possible effect of the higher charges on investment performance. You confirmed that you
were keen to gain access to the additional investment expertise that such funds offer,
although improved investment performance is not guaranteed.
We also ran through other options such as [insert details e.g. direct investment into a
portfolio of funds or Manager of Managers fund]. However, for the reasons set out
above, we agreed that it would be appropriate for you to access the Fund of Funds
management expertise.
[Include notes on any individual funds with specific risks e.g. non-liquidity, high
volatility, non sterling denominated funds, use of options, derivatives and hedging
etc]
Provider
In reviewing your objectives we considered a number of criteria which we agreed
were important to you, including (insert details).
Having undertaken appropriate research on your behalf I believe that (XYZ Life) will
offer the most suitable contract given your stated objectives and risk profile.
(Detail justification in sufficient depth in terms of specific product features, financial
strength, contract charges, past performance etc OR REFER TO ATTACHED
RESEARCH BELOW)
Optional - what research is attached?
A copy of the research undertaken accompanies this letter for your consideration
which outlines in greater detail the reasons for recommendation of the chosen
provider.
OR
In reviewing your objectives we agreed that you should utilise your own bespoke
pension scheme as opposed to using a single institution. The specific reasons for
this are (insert client specific reasons).
Contribution Indexation
It is important that contribution levels are reviewed on a regular basis and in order
to maintain their purchasing power should be increased at least in line with
inflation. This plan offers a number of indexation levels (X%, RPI, NAE) and I would
recommend that contributions increase on the following basis (X%,RPI or NAE).
I have recommended that you purchase this benefit and you have agreed to
incorporate it within the contract OR you have elected not to do so.
Fees
As we discussed the additional fees involved in setting up and administering the
SSAS are as follows (insert relevant initial and ongoing fees).
Optional - if any contracts replaced
Replacement Contracts
In reviewing your objectives, I have recommended that you surrender/discontinue the
contracts outlined in the Replacement Contract Form. [Insert any additional instructions
e.g. do not cancel until new policy in force]
The rationale for this is also outlined in the Replacement Contract Form, which we
completed during our last meeting and a copy of which is attached to this letter.
Key Features Document
[Note to adviser: The Key Features Documents section is relevant to life policies,
personal and stakeholder pensions, investment trust savings schemes and cash
ISAs. If a UK authorised OEIC or unit trust is being recommended (standalone or
within a wrapper such as a stocks and shares ISA or SIPP) the section below
headed Key Investor Information Documents should be included in respect of that
recommendation.]
I have provided you with a Key Features Document. This documentation is important and
contains information regarding the product which I have recommended, particularly with
regards to the product’s aims, charges, the commitment which it entails, together with its
legal (including policyholder protection) and tax status. If there are any points on which you
are unsure or require further clarification, please contact me and I will be pleased to
explain these in greater detail.
Key Investor Information Documents (KIID)
[Note to adviser: The Key Investor Information Documents section is relevant to UK
authorised OEICs and unit trusts (standalone or within a wrapper such as a stocks
and shares ISA or SIPP) and a separate KIID is necessary for each fund. If a life
policy, personal or stakeholder pension, investment trust savings scheme or cash
ISA is being recommended the section above headed Key Features Documents
should be included in respect of that recommendation.]
A Key Investor Information Document (KIID) has been prepared by [Provider(s)] for each
fund recommended. The KIID should be read carefully as it includes important information
on the fund’s Objectives and Investment Policy, Risk and Reward Profile, Charges, Past
Performance and other practical information. The KIID should be read in conjunction with
the additional information for investors provided by the relevant provider.
The KIID(s) and additional information for the Fund(s) recommended [insert from the list
below as applicable]
 is/are [attached to/supplied with] this letter.
 is/are available via the following link(s) [insert link(s) to provider web page(s)
containing each KIID and additional investor information, assuming client
has agreed, and is able to, access electronically].
If there are any points on which you’d like more information, please call me on (phone) or
email me at (email) and I will explain them in greater detail.
Financial Services Compensation Scheme (‘FSCS’)
The FSCS was set up under the Financial Services and Markets Act 2000 and exists to
protect clients of FCA authorised firms and covers deposits, insurance and investments.
The Scheme can pay compensation to clients who have lost money as a result of their
dealings with FCA authorised firms that are unable to pay claims against them, usually
because they are insolvent or have stopped trading.
As outlined earlier, the limit of protection varies between different types of products and is
detailed in our (Keyfacts about our services and costs document) (insert name of
other document where you detail the FSCS coverage).
For pensions, life assurance and non-compulsory insurance (e.g. home and general), the
compensation level is 90% of the claim.
(Adviser Note: the following paragraph should be used where external funds are
selected)
You are aware that where you are investing in [PROVIDER] investment that itself
purchases external investments, should one of the external investments fail to meet their
liabilities, then [PROVIDER] may make a claim on behalf of all policy holders, the extent of
[PROVIDER]’s claim is limited. However, as [PROVIDER] itself is not in default, you will
not be in a position to claim via the Scheme. An example is individual bank cash deposit
fund held within an investment vehicle such as an Investment Bond. You should note in
this instance that the institution providing the investment vehicle is deemed to be an
institutional investor and may only be able to raise one claim within the agreed limits, on
behalf of all policyholders. In other words, as a policyholder you could not raise a
claim on an individual basis.
Risks
The [Key Features Document/Key Investor Information Document] also provides you
with details of any risks and potential disadvantages associated with the contract
recommended. We have previously discussed these, and I would like to highlight the
following points:





Past performance is no guarantee of future returns.
The price of units and the income from them can fall as well as rise.
Investment values may go down as well as up and you may not get back the full
amount invested.
Some investments e.g. property may not be readily realisable and will be subject
to market conditions at that time.
This investment is intended as a long-term investment and under current HM
Revenue & Customs’ practice it is not normally possible to access the fund(s)
prior to the age of 55.
The illustration uses certain assumed rates of growth, as prescribed by the Financial
Conduct Authority. These rates are not guaranteed. The advice provided to you is based
upon the information you have disclosed and therefore, if this letter does not accord with
your view of the situation or you require any further clarification please contact me
immediately.
All statements concerning the tax treatment of products and their benefits are based on
our understanding of current tax law and HM Revenue and Customs’ practice. Levels and
bases of tax relief are subject to change.
Reviewing your financial arrangements in the future
We discussed the importance of regularly reviewing your financial arrangements and
[insert details on whether the client will receive pro-active review].
If will is in place
I note that you currently have a will in place. I recommend that this is also kept under
review and updated in line with your changing financial situation.
If no will is in place
I note that you do not currently have a will in place. I recommend that this is drafted as
soon as possible and reviewed and updated in line with your changing financial situation.
Remuneration (to be tailored to the firm’s specific circumstances)
Our fee structure is detailed in our [keyfacts about our services and costs disclosure
document/client agreement/ CIDD/ SCDD/insert document name if other] which we
gave to you at the meeting.
[As detailed in our fee agreement signed [insert date] the fees due are as follows:
 an initial fee of [£xxx/£x per month/annum for x years] will be charged to meet
the costs of our recommendation and implementation of these recommendations
 X% per month adviser charge which currently equates to £xxx adviser charge.
In this case, our fee will be deducted by [provider name] from your
[premium(s)/investment(s)] before the [premium(s)/investment(s) is/are] paid into your
[plan/investment]. The Key Features Illustration (KFI) provided by [provider] shows the
[premiums/investment amount] after deduction of our fee and the projected investment
returns given in the KFI are on the basis of the [premium/investment] net of our fee.
OR
In this case, our fee will be deducted by [provider name] from your
[premium(s)/investment(s)] after the [premium(s)/investment(s) is/are] paid into your
[plan/investment]. The Key Features Illustration (KFI) provided by [provider] includes
our fee as a charge within the plan and this is reflected in the ‘effect of charges’ table and
‘reduction in yield’ statement on the projected investment returns.
Adviser charges taken from pension arrangements should be solely for the purposes of
covering remuneration for pensions related services, if any of the charges taken from this
pension arrangement are used to cover non-pensions charges, it is likely to be deemed to
be an “unauthorised payment” by HMRC and could therefore create a liability to a tax
charge.
OR
In this case, the full amount of your [premium(s)/investment(s)] will be [invested
in/allocated to] your [plan/investment] and we will require a separate payment from you
in respect of our fee.]
Cancellation rights
Details of the appropriate cancellation period for the contract recommended are contained
within the [illustration/investor information] which was provided to you.
[Adviser Note: in most instances a Client will not be able to exercise a right to
cancel in connection with the purchase of shares, units in a collective investment
scheme and unit linked life/pension policies when sold at a distance – if so this
needs to be confirmed within the Suitability Letter.]
Conclusion
I trust that this letter, together with accompanying documents, will clarify why I believe the
contract(s) recommended is/are the most suitable for your financial objectives.
Should you require further information regarding the contract(s) recommended please do
not hesitate to contact me.
Yours sincerely,