1. Introduction

This policy outlines the fees associated with Individual Voluntary Arrangements (IVAs) provided by Advice Centre Group Ltd (ACG). Our goal is to ensure full transparency in how fees are charged and how they impact clients’ payments.

2. Purpose

The purpose of this policy is to:

• Clearly communicate the structure of IVA fees to clients.
• Maintain transparency and fairness in our fee practices.

3. Fee Structure

IVA fees are agreed with creditors and deducted from the client’s payments before distributions to creditors. In most cases, IVA fees are set at £3,650 under the standard fee model, but variations may apply depending on the complexity of the case.

3.1. Standard IVA Fees (£3,650 Total)

Under the standard model, the IVA fees typically consist of:

• Nominee Fee: £1,600 – Covers the cost of setting up the IVA, including drafting the proposal, negotiations with creditors, and arranging the creditors’ meeting.
• Supervisor Fee: £1,750 – Covers the ongoing management of the IVA, including case administration, distributing payments to creditors, reviewing clients’ financial circumstances, and handling creditor communications.
• Disbursements: £300 – Covers essential administrative costs such as the case management system, insurance, and regulatory compliance.

3.2. Alternative Fee Model (Subject To Creditor Approval)

In some cases, an alternative fee model may be used where:

• The Nominee Fee is between £1,000 and £2,000, depending on case complexity.
• The Supervisor Fee is 15% of realisations (payments made into the IVA).
• Disbursements may vary between £300 and £1,000 based on case-specific requirements.

4. Impact on Client Payments

IVA payments made by clients are allocated to the agreed fees and creditor distributions.

The structure ensures that payments remain affordable while meeting creditor expectations.

5. Fee Adjustments

If a client’s financial situation changes significantly, a variation may be proposed to adjust client payments, which could affect fee calculations.

Any changes to fees require creditor approval.

6. Regulatory Compliance

ACG ensures that all IVA fees comply with the Insolvency Practitioner Association and industry guidelines.

Clients receive a full breakdown of fees as part of their IVA documentation before entering the IVA.

7. Client Transparency and Support

Annual reports ensure ongoing transparency.

ACG is committed to offering guidance and support for any concerns related to IVA fees.

8. Complaints and Disputes

Clients and creditors may raise concerns about fees through ACG’s formal complaints procedure, which can be found via the website.

9. Review

This policy is reviewed annually to ensure continued compliance and fairness.