How we are paid

During the initial free, no-obligation meeting, Obsidian will assess your requirements, and you will be given clear information about the type of advice and level of service provided by the adviser and how much it will cost.

You will be given details on how the firm is regulated by the FCA, the range of products we are authorised to advise on and any information we are required to give you. The details outline the type of products the firm offers advice on, for example, savings and investments, pensions, mortgages, and protection.

We offer a variety of methods by which this can be paid, and your adviser will agree with you the most convenient method. This could be a set fee or a percentage of the amount you invest and can be paid upfront or, in some circumstances, the provider may be able to take the fee from the sum you invest. There can be tax implications, so it is important to agree to the most suitable method of remuneration for your personal circumstances.

We will also tell you if you have to pay VAT and if there are other costs that might arise in connection with the services we provide to you.

There will always be a cost for your adviser's service as, like any other business arrangement, you are benefiting from their expertise. Clients pay for advice in three main ways:

• Fees Since 31st December 2012, it has been a regulatory requirement that the cost of all investment and pension advice be based on a fee rather than commission
• Commission For mortgage and protection advice, we may still receive commission. If we do, we will always tell you how much we earn we earn. The cost of this commission is paid out by the provider and will normally be factored into the price of your product. These commissions vary with different products and providers but will be documented on the key facts illustration (KFI) you receive from the adviser.
• Fees & Commission By paying a combination of fees and commission, we may rebate any commission back into the products or offset it against the fee.

Whether we take our remuneration by way of commission or fees will be a matter of discussion and agreement, and no charges for fees will be made without prior notification in writing.