Next Year Fee Projection

 

Next Year Fee Projection gives the adviser an ability to create an approximate fee projection for the Assets the client is holding.

Next Year Fee after calculations is the “Total Projected Fee” levied on the different assets which the client has or will have in the next year.

There are 2 types of fees that make Total Projected Fees in the Compliance tab under Next Year section are: -

  1. Portfolio Based Fee: This type of fee can be a percentage, or an upfront amount levied on the assets that client holds. Headers available for this section are:
  • FDS Applicability - You can switch on/off the toggle to include/exclude it from the FDS reporting.
  • Account – It is the account code of the asset.
  • Description – It shows Platform name.
  • Entity – Owner of the asset.
  • Type – It shows Existing portfolio, additions, and withdrawals of an asset.
  • Fee Structure – Ability to create and select Fee Structure as per the requirement
  • Portfolio Balance – Sum of Existing portfolio, additions, and withdrawals of an asset.
  • Last Updated on – Any deletion or additions to assets can be seen with the help of this button. It brings in the latest portfolio balance.
  • Projected Fee – This column shows the fees calculated on each portfolio based on the selected Fee Structure.
  1. Fixed Fee: This is an upfront amount which can be levied on a particular asset.
  • Fixed Fee: Total fixed fee adviser wishes to charge on the total number of assets which exist in the client's portfolio.
  • FDS Applicability - You can switch on/off the toggle to include/exclude it from the FDS reporting.
  • Account – It is the account code of the asset.
  • Description – It shows Platform name.
  • Entity – Owner of the asset.
  • Allocation – Bifurcation of the fee charged by each portfolio.
  • Projected Fee – This column shows the fees calculated on each portfolio based on the selected Fee Structure.

blobid5.png

With the Next Year Fee Projection feature, Advisers now have the following attributes: -

 

1. Ability to turn on/off a particular asset in the Portfolio Based Fee or Fixed Fee or in both.

 Toggles off for Portfolio Based Fee

 Toggles off for Fixed fee

 

Toggles off for both Fixed fee and Portfolio based fee

 

2. Ability to choose from a list of Fee Structures present under the Fee Structure drop down.

 

mceclip4.png

 

3. Ability to refresh the Portfolio Balance data when clicked on refresh button next to Last Updated On.

 

4. Ability to edit the existing portfolio balance on clicking the pencil icon against the Existing text.

 

 

5. Ability to show additions and withdrawals for the assets through Projected Additions and Projected Withdrawals.

6. For a deleted asset, you will get an option to Un-map and remove the asset from the projection for calculating fee as well. In addition to that, you may switch on/off the toggle for a particular asset to include/exclude it in the portfolio fee projections.

 

7. Adding custom fee structure according to the requirement in the FOFA fee structures. You can add them under Administrative Tools > Compliance Including FOFA > FOFA Fee Structure.

 

8. At the Bottom of the screen, user can see Total Projected Fees for the next year.

9. The Fee structure created under Administrative Tools > Compliance Including FOFA > FOFA Fee Structure are mapped with the Portfolio Advice Fees Setup under Digital Advice > Scenarios > Settings > Portfolio Advice Fees Setup. But the calculation has been done on a different basis as compared to Digital Advice side. Digital Advice is using Slab based method (Income Tax Method) and here in Next year Fee Projection, we will be using a single rate for the whole amount as per the amount.

For example: Fee structure 3 is used for calculating the fee for Next Year. Fee Structure 3 as shown in below image. It has 3 different fee percentages according to the amount.

 

If for example the portfolio amount is AU$ 150,000. It will come under the 2nd slab interval. This implies that a 10% fee will be implied overall on $150,000 amount for calculating fee.

And not 5% levied on 99,999.99 and 10% on remaining 50,000.01.

 

10. Old data created by the advisers for the clients for the next year, we have migrated all that existing data under next year's fee and have mapped them under the fixed fee section, now entries will be created from the migrated data and those entries will be used to calculate the next year's fee for the first time since other toggles for the portfolio based fee will be turned off.

Data that is pulled in the FDS template will remain the same.

 

Data migrated and a row is created under fixed fee (For Account, Description Amount and Entity). All the other toggles are turned off for Portfolio Based Fee and Fixed Fee.

 

 

11. It will also be showcased in the FDS under Services & Fees for Upcoming year > Fees section. Parameters like Account, Description, Entity and Total Projected Fees (Portfolio Based Fee + Fixed Fee) will be shown for all the assets respectively and then the total for all the amounts as well. As shown in table below.

 

mceclip0.png

 

 

 

 

 

Have more questions? Submit a request