REGULATORY EXPERTISE
SUMMARY CHARGES MI
DATA INPUT
Input base data here . This will be used when calculating the cost of initial and ingoing advice .
MAKING YOUR CIRP MORE EFFICIENT
BLENDED CHARGE
EFFECTIVE CHARGE
INITIAL CHARGE
ONGOING CHARGE
For firms who utilise a blended charging structure , where the initial charge decreases in tiers , typically on a 3 %/ 2 %/ 1 % basis . This will calculate the blended charge .
For firms who charge on a hybrid basis with a fixed monetary amount in addition to a percentage . This will calculate the total charge on a percentage basis .
Calculate the time taken to execute the initial advice process , the minimum charge and the threshold investment amount .
Calculate the time taken to execute the ongoing advice process , the minimum charge and the threshold investment amount .
Karl Dines Head of Business Consultancy SimplyBiz
ADMIN ONLY CHARGE
Calculate the cost in providing an administrative service . Typically a lower proportionate charge will be paid for this service , at a flat fee rather than a percentage .
SUMMARY INCOME MI
You ’ ve made sure you can ‘ do Consumer Duty ’, so now it ’ s time for the next step – doing things better . We asked our Head of Business Consultancy , Karl Dines , how his team approach building efficiency into a Centralised Investment and Retirement Proposition .
Ten years ago now we were working with software in order to research the multi-asset market . It became very obvious very quickly that adding a number of variables or filters in varying degrees of strength would yield different results . For instance , some might make a shortlist too short or even rule out all the options . After adding in filters and making them stronger or weaker it could get very convoluted , to the extent that it needed to be given serious consideration and documented before you even started to press buttons within the software . This was the birth of what has now evolved into our Centralised Investment and Retirement Proposition ( CIRP ).
CAPACITY ANALYSIS
VALUE ASSESSMENT
VALUE RATIO
TECH ALLOCATION
PROCESS EFFICIENCY
INCOME MODELLER
To calculate maximum number of ongoing clients which can be serviced per adviser . It takes into account the estimated number of new clients with the year .
To calculate the % charge accounting for minimums and maximums . When applied , the equivalent % is calculated . This may be more or less than the published % charge .
An assessment of the value of the advice service taking into consideration the monetary cost of providing the advice and the potential investment growth achieved .
An assessment of current tech used and its costs against a reallocated model . Used in order to derive greater value from tech and / or to reduce the tech spend .
The adoption of tech can reduce the time taken in the advice process whilst maintaining its integrity . This will model the advice savings based on increased efficiency .
Input details of the current ongoing advice model based on the average ongoing charge and assets under management . This will allow a firm to explore alternative models and income stream .
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