Fees in Advance
Enabling schools to invest lump sum contributions from parents to pay for future school fees.
The object of this Scheme is to enable schools to accept funds from parents who wish to provide for future school fees and for the school to invest them in low risk investments which will be structured to meet the fees as they fall due.
How Does It work?
- Any school, which is a member of the Independent Schools Bursars Association (ISBA), may join the Scheme subject to their signing a contract with SFS Group Limited for the provision of administrative services in connection with the Scheme and with the Fund Manager for the provision of investment services.
- A parent, who has paid a deposit to the school and for whom the school has a reserved place, approaches the school with a lump sum to invest for future school fees. This would need to be a minimum sum of £25,000 and for a period of longer than 3 terms in advance.
- The bursar will provide the parent with an illustration (to be provided by SFS Group) to show the application of a lump sum to future fees, fee inflation and a discount. It will not be possible for a school to guarantee future fees and the parent will have to meet any shortfall that arises as a result of an increase in the fees.
- The parent will sign a contract which sets out the obligations of both parties and gives the school a cheque for the agreed amount. The illustration for the required future fees will also have to be signed off by the parent.
- The school sends the agreed amount to the Fund Manager with a copy of the illustration (a copy will also need to be provided to the Administrator). The Fund Manager will purchase gilts whose redemption dates match the expected future requirement for school fees. Investments that potentially carry a higher risk than gilts may be considered.
- When the money is required to meet the termly fees the school will send a copy of an invoice that clearly states the name of the pupil for whom fees are due to SFS Group. SFS Group will collate these and send them to the Fund Manager who will transfer the money to the school account and send an advice note to the school.
To receive further information about The Fees in Advance Scheme, please call 01306 746 300Download summary PDF