Advice fees deducted directly from a client portfolio may be setup in the Portfolio Advice Fees Setup within Digital Advice settings. This provides the flexibility to set predefined fee structures from fixed dollar to percentage on a sliding scale arrangement. The fee structures are then available to use within Digital Advice scenarios on the Disclosure Fees page which is the final page in each scenario.
Portfolio Advice Fees Setup
From within a client, go to the Digital Advice page.
Open Digital Advice Settings via the gear icon (top right corner) or go to settings link
Select the Portfolio Advice Fees Setup menu from the left navigation menu.
Add Fee Structure
Any fees you have setup will appear as cards on this screen. The first time you access this screen, you will see the below message and the button + Add Fee Structure. Click this to add a new fee structure setup.
Note – you can add up to five (5) fee structure setups. Once all are used the +Add Fee Structure button will become disabled. To add more, you can delete an existing fee setup.
You can add Upfront Fee and Ongoing Fee as either a percentage % or flat $ fee per annum. This can be on a single tier or multi-tier basis.
Add a Fee name and enter required structure. Click on the + icon (right of the Fee box) to add additional tiers. Click Save once complete.
The fee will be applied against the portfolio balance when selected on the Advice Disclosure Fees page.
Advice Disclosure Fees – Applying a Fee Structure
Advice scenarios will now display the Set Portfolio Advice Fee popup when you move to the Advice Disclosure Fees page within Digital Advice. Any Fee Structures fees you have setup will display under each portfolio allowing you to click it to select and apply to that portfolio.
Once you have applied any Fee Structures, click the Save button. The portfolio and calculated fee will display on the Advice Disclosure Fee page.
Advice Disclosure Fees – How to Enter Direct Fees
Upfront advice fees listed with the word “Preparation” will be used for the Preparation of Advice component in the Statement of Advice template. “Implementation” for the Implementation fees component. Ongoing advice fees uses the key word “Ongoing”. By using these key words in the fee description, these fees will display in your Statement of Advice as direct fees. Fees from a Fee Structure applied to a portfolio, will appear in the investment advice fees table.