By Jenne Mannion SOFA and Winterthur have teamed up to produce a Fees Toolkit, allowing financial ad...
By Jenne Mannion
SOFA and Winterthur have teamed up to produce a Fees Toolkit, allowing financial advisers to determine the appropriate hourly rate to charge their clients.
After calculating the cost of advising a client on particular issues, the Fees Toolkit will produce the necessary documentation to support the adviser should clients default on their payments.
The software for the Fees Toolkit should be available at the end of the first quarter of 2000. This software is part of a package containing several computer-based tools and the necessary documentation to initiate a move to operating on a fee basis. SOFA members will be entitled to a discount on the product.
Robert Reid, former chairman of SOFA, said: "The Fees Toolkit is the first genuine attempt to help advisers with the transition from commission to fees. By monitoring the time spent on a client, the adviser can determine which clients are worth retaining and/or developing."
Another feature within the Fees Toolkit, called the rate calculator, will allow the user to input fixed costs, determine the amount of chargeable time available, allow for profit margin and arrive at an approximate administration to advice ratio. This then allows the user to determine appropriate hourly rates for administration and advice.
The kit includes a series of templates for various intermediary activities, from the advice process through to execution of a deal, allowing users to produce itemised costs and relevant documentation for each stage of the advice and sales process.
A time-cost module is included and has been designed to automatically register time spent on a client.
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