Take initial adviser fee implicitly

 

Also see View and change initial fee shares on investment instructions

 

Initial Adviser fees can be taken as an explicit fee on investment instructions. The adviser fee will then be displayed in the transactions on the instructions, in the holdings on the contract and the contract statement.

 

Where the administrator does not want to display the initial adviser fee transactions, the adviser fee can be taken implicitly as part of a fee share on the Initial Administration fee on an investment instruction.

 

Conditions applicable to using the implicit initial adviser fee:

  1. Only initial administration fees and initial adviser fees must be part of the investment instruction. In other words, if a third initial fee forms part of the investment instruction, the functionality cannot be used.
  2. The initial administration fee and initial adviser fee must be a percentage.
  3. Where minimum fees are used in conjunction with a fee percentage the functionality will ignore the minimums

 

Fee shares on the contract prior to making the initial adviser fee implicit:

 

Investment instruction:

 

On selecting ‘Update implicit fees’ the actual fee share that is intended for the Initial Adviser fee can be updated

 

When selecting ‘OK’ the fee share to the adviser will be added to the Initial Administration fee share and re-proportion the other existing fee shares on the Initial Administration fee to add up to 100%.

 

The initial administration fee share will now be updated on the contract as follows:

NOTE:

  1. Fee shares on the initial adviser fee will not change, it will however also not be applied as a fee share. In other words the Initial Adviser fee share will be allocated to the adviser alone (in this example 25% will be allocated to the Adviser (A Broker)).
  2. If Take advisor fee implicitly through fee shares is ticked and then un-ticked, the fee shares on the initial administration fee will not revert back. The instruction will have to be cancelled and reprocessed if the intention was not to take the initial adviser fee implicitly.
  3. Take adviser fee implicitly through fee shares is only available while the investment instruction is in status new.

 

Last Updated on 5 months ago by Debra Hart