IFAnow launches Advisory Fee Billing. Here’s everything you want to know about it.

IFAnow launches Advisory Fee Billing. Here’s everything you want to know about it.

Fee based models are now increasingly becoming a hot topic of discussion among IFAs. Not just the RIAs but even non RIAs are seriously looking at fee models.

Why this trend?

  • Clients showing growing acceptance towards fee charging
  • Gradual shift from distribution to advisory services requires advisors to spend more time on quality work thus commanding a fee
  • SEBI increasingly focusing on fee based models

Moreover, clients and prospects are gradually becoming aware about direct plans. In such case, if you have a fee based system in place, you can then offer direct plans too and charge a fee.

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Variable fee

We’ve been watching this space closely and strongly believe that fee based model will have to be looked upon by financial advisors as a serious offering.  Now, there aren’t too many options when it comes to calculating fees and collecting the same. Couple of ones that are currently there charge a bomb and require you to shed your identity by becoming their sub brokers.

We believe this HAD to be solved. We’ve spent last few months building a comprehensive advisory fee billing system. We’ve kept in mind the Indian context while building this out.

Here are some of the key features:

  • Complete flexibility to add your own fee models
  • You decide the fee amounts and charging frequency too. Want to charge a monthly fee? We’ve got you covered
  • Charge AUM linked fee or fixed fee. We take care of average AUM calculation
  • We take care of auto debiting the fee from your client’s accounts too, thus reducing friction
  • Slab based charging. Create your own slabs
  • Option to charge different fees for regular and direct plans
  • Not just MF, you can add multiple asset classes like stocks, FD, insurance products etc.
  • Further customization of fees at a client level

Process Flow:

  • Once you decide to go ahead, we send you a tripartite agreement that you need to sign with your clients. We send you a debit mandate that you need to get signed from the client.
  • Once done, you decide the fee structure you want to charge at a client level. The invoices are automatically created for you.
  • You then intimate us to debit the client’s account. We in turn send an auto debit notification to your client.
  • Next working day, the fees are debited.
  • We then payout the fees back to you.

Important: Please note that you should have an RIA license in place if you want to use this feature.

Questions? Call us on 022 2895 4777 or email @ support@futurewise.co.in

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