FEE BILLING BY NEXUS

What is Nexus?

The Nexus platform is a highly configurable web application that allows consolidation of multiple technology vendors into one solution. Whether you’re a BD or RIA, Nexus offers a perfect balance between providing regulatory compliance and supplying the majority of basic operational tools required by individual advisors and for your firm to advance your book of business, all while retaining the ability to accommodate the differences encountered from firm to firm and advisor to advisor.

Common Fee Billing Difficulties for BDs/RIAs

Calculating fees for accounts receiving advisory services is frequently expensive, inefficient, time-consuming, or some combination of all those factors. Many firms use manual spreadsheet-based processes while others use software solutions requiring far too much manual intervention to cover more complicated billing scenarios. Below the line security/cash exclusions, flow adjustments, fee rejections due to low cash, and third-party or even first-party model costs add enough complexity to client fee billing to result in a labour-intensive process every billing cycle. This is all compounded by the SEC’s renewed regulatory focus on the accuracy of advisory fees as calculated and billed to clients. The more manual a complex process is, the more likely there is to be unintended errors.

How Nexus Can Help

Fee Billing Module: Advisory fee billing using our Tradepro fee billing module provides a highly robust collection of functionality and capability drastically reducing the time between when a billing cycle has ended and the time a firm is able to submit accurate fees to the custodian. Fees are calculated and available for release to the custodian within 6 hours of receiving the final daily account valuation for the billing cycle. Just some of the key capabilities of Tradepro include:

• Automatic holding of a calculated fee if there is not enough cash in the account to cover the fee. Notifications of these held fees can be provided to any user or group of users.

• Custodian Agnostic: Accounts held at different custodians are supported equally and are all portrayed in the same unified interface.

• Industry leading “Daily Fee Billing” capability. This optional feature eliminates the need for arbitrary cash flow thresholds and creation of mid-period credits or debits. Daily Fee Billing also provides a mathematically bulletproof calculation method making this aspect of an SEC audit a non-issue.

• Below the line exclusions fully supported. Set aside amounts of cash or entire holdings from the billing calculation with optional expiration dates.

• Investment model costs (TPMM or corporate RIA platforms) can be incorporated into billing. 

• Single sleeve and multi-sleeve models within a single account are fully supported.

• Special billing exceptions can be configured automatically using a rule engine configured to act on a single account or any group of accounts.

• Fee schedule templates can be created and applied to multiple accounts reducing the time needed to configure a new account for billing. Any account can deviate from a template into its own custom schedule at any time.

• Quarterly, monthly, annually, forward billing, arrears billing are all configurable down to the account level allowing you to incorporate many different legacy billing arrangements. This is common in this era of book of business purchases.

• Manual fees and flat fees are supported.

• Optional PDF formatted fee invoices or notices can be generated and delivered to clients via email or printed for paper mailings.

• Integrates seamlessly with our advisor compensation module popular with our hybrid BD/RIA clients allowing for further processing of fees as items of revenue to the advisor of record.

• Automatic monitoring for newly funded accounts and/or accounts missing a billing configuration.

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