30 Jan Why does the system not take adviser fees?
Posted at 11:07h
in
For compliance with regulations the system does not take fees on an investment account, if the adviser linked to the investment account does not have the instrument that is on the investment account in his “Available Instrument” list.
Available instrument list on the adviser translates into “Does the adviser have a license to sell the instrument”. If ANY instrument on the client account is not in the adviser list, then the whole account will be skipped in the fee run, pending the outcome of some Regulatory investigation or suspension of the adviser.
If an instrument is closed for investments you can leave the instrument on the adviser, but just make it Inactive – Closed. This will prevent it from appearing in the list of funds to invest in when you create an instruction.
Under Reports -> Compliance report -> there is a list of Investor accounts that has Compliance problems. Before you do a fee run with commission you need to check this report.
There are a couple or reasons you DON’T want to add an instrument to an adviser:
1. Compliance – the adviser is not licensed to sell the instrument e.g If you look on the FSB site under FAIS and search for Adviser XYZ. Under Products Approved you’ll see they are not registered to sell “Securities and Instruments: Shares”. So lets assume you need this license. You should NOT link an instrument like a PSP’s to him. This will prevent you from accidentally selecting a PSP for a client.
Same with the tick “License” under the product section of the adviser. If he cannot sell a Living Annuity you should not tick this. When you then click Add investment on the client and he is linked to an Adviser without the license, the Living Annuity will not show as an option.
2. Business rules – You might not want the Advisers XYZ to be able to sell e.g. etfSA funds, not because they cannot, but because these are specifically reserved for other advisers as part of your business arrangement. Then don’t add the etfSA instrument to the other advisers. i.e specific adviser established funds.
3. Check if the Adviser is licensed for the relevant product.
4. Check if there is an end date specified for adviser, before the date specified as the taken up to date on the fee run (Adviser Card on the investor account ->Annual advisor fee end date).