Fee Principles

We cater to all families and financial situations

As an Authorised Financial Services Provider, Clan Capital is a regulated fiduciary, required to put the interests of our clients first. We offer comprehensive financial advice and investment management, and have a fee structure that caters to the requirements of all investors, regardless of their circumstances.

We manage the number of our clients

As an independent, owner-managed business, Clan Capital is in complete control of who we work with, and the terms agreed with each new client. We are under no corporate pressure to take on more clients than we can manage (to drive earnings as our listed entity competitors, nor fund multiple cross-selling divisions as our larger competitors).

We seek a fair fee

We therefore approach each engagement discussion as an opportunity to custom a value adding approach, with distinctive service components, and a fair fee to reflect the level of complexity and time required to meet client expectations.

Everything is negotiable

All advice and management services, and their related fees, are therefore negotiable. This doesn’t mean we are fee discounters, or prepared to take on difficult mandates without regard for the impact on our time and resources. We offer the means to save our prospective clients time, manage their risk, reduce stress, and grow their capital.

Fee Processes

Benchmarking

We monitor industry standards, our resources, and client expectations, to set the basis for our fees. Industry standards include domestic and international pricing, at both the retail and institutional level. Our resources are primarily time and value-based i.e. how much time it takes our team to complete and the estimated value a client receives from arriving at a financial decision that will pay off over many years

Categories

We cater for two broad client requirements:

  1. Comprehensive advice
  2. Scaled advice

Comprehensive advice

This mandate involves full disclosure of a client’s financial situation, enabling us to provide holistic advice i.e. we place all assets and liabilities within an integrated context, and build risk management quality through greater understanding

Most of our clients choose our comprehensive advice, due to their later life-stage, financial complexity, and desire to consolidate advice. This suits us, and reflects the majority of clients are within the 45 – 65 age band.

Scaled advice

This mandate involves limited disclosure of a client’s financial situation, focusing us on a specific aspect of advice or management i.e. we provide our best efforts, without complete understanding of related plan components, but focus on building component quality

Our younger clients often receive scaled advice, due to a focus on developing financial discipline, and their limited complexity requirement

Structure

We are a fee-only advisor, and offer:

  • Annual % of investable assets e.g. 1% per annum
  • Tiered asset based fee i.e. larger clients pay a lower annual percentage on investable assets
  • Flat fee e.g. design of a financial plan with an agreed Rand amount
  • Time based fee i.e. set rate per team member, applied to time taken

Importantly

We do not earn any fees as commission or referral to third party products. We believe in full fee transparency, and disclose all fees earned on a quarterly basis, and within an annual rolling review

Where third parties offer reduced rates, available only to financial advisors, we declare these to our clients, and pass them on

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