There is a status setting on instruments which can be ‘Active’ or ‘Inactive’. Dependant on this setting, different Status Descriptions can be selected from the Status Description drop-down list. One of the ‘Inactive descriptions is ‘Suspended No Advisor Fees’.
On the system screen there is a setting ‘Take suspended adviser fees’. If this setting is ticked, advisor fees will be taken as usual on instruments with the status description of ‘Suspended No Advisor Fees’.
If ‘Take suspended adviser fees’ is not ticked on the System screen, Advisor fees will not be taken on instruments with the status description of ‘Suspended No Advisor Fees’.
‘Accrued Interest, Fees And Taxes’ in Current Holdings on an Investor Account will include Advisor fees on suspended instruments, whether ‘Take suspended adviser fees’ on the System screen is ticked or not.
If ‘Take suspended adviser fees’ is not ticked on the System screen, the Advisor fees generated on the suspended instruments will remain in the client account. The system will create an authorised switch instruction to switch the advisor fees generated on the suspended instrument to the Fee Provision instrument, as setup for the trading currency of the suspended instrument.
Where no Fee Provision Instrument is setup for the trading currency of the suspended instrument, Advisor fees on non-suspended instruments will be taken. The automatic switch instruction to switch the advisor fees on the suspended instrument to the Fee Provision instrument will not be created and the switch will have to be done manually.
The market value of the investor account on the transaction date of the Fee run will be used to determine the suspended portion of the advisor fee using the formula: suspendedMarketValue / totalMarketValue * totalAdviserFeeAccrued.
|Total market Value||27990.63|
|Total Advisor Fee accrued||69.86|
|Suspended portion of Advisor Fee:|
|(27249.86 / 27990.63) * 69.86 = 68.01|