Ongoing Fee Process

Process

Fee process consists of the following 3 steps:

1. Calculate

  • The system will calculate a daily fee value and add it up to get one amount for the fee period.

2. Move fee

  • The system will move the fee from the client account to the Administrator or Brokerage fee accounts.

3. Withdraw fee (optional)

  • Withdraw instruction is loaded on the account to sell any units, add the proceeds to any existing cash and payout to a bank account.

NOTE:

1 and 2 happens during the fee run, 3 is done ad-hoc manually for admin and distributor fees. It can be done manually per account or done in a batch for adviser fees depending on the setup on the adviser. (Reports -> Advisers to pay out)

 

Ongoing Fee Method

The system allows you to select one of the following “Ongoing Fee Method” on an account, for step 2 above:

Proportionately

  • Split the total fee amount between the remaining instruments on the transaction date.
  • It moves the units and cash to the Fee Portfolio.
  • The number of units is determined by die price on the transaction date.

From Instrument

  • You can select the default currency OR any instrument that currently has value on the account.
  • The number of units is determined by die price on the transaction date.

From Instrument Then Proportionately

  • You can select the instrument to be used to take fees from BEFORE continuing to take the rest of the fees proportionately.
  • Fees will be taken from the selected instrument, if there is not enough (or no) money in the instrument, then the rest of the fees will be taken proportionately from the other instruments.
  • Only if there is not enough value available after you tried to take proportionately, an error will be logged in the fee run.

 

NOTE:

  • If we try and do 2 above and there is not enough units/cash we move nothing and give you a warning for that account in the fee run.
  • On the next fee run the system will try again.
  • Or you can fix the problem and do another fee run for the same date that will then automatically only include the accounts where there where issues. (we look at the last fee taken date)

 

Refer to the Fees in the System Guide for more detailed information.

 

Last Updated on 5 years ago by Tinus Burger