Transition Plan过渡方案.doc

Transition Plan A To Fee or Not to Fee Template Version 1.1 四月 6, 2019 The document is designed to help the financial advisor transition to a fee financial advisory practice. Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf To Fee or Not to Fee. All rights reserved.Page 2 of 15 LOGO Advisor Name Company Name Street Address 1 Street Address 2 City Postal Code Country Tel: +xxx-xxx-xxxx Fax: + xxx-xxx-xxxx Last edited: 06 四月 2019 Copyright 2008 To Fee or Not To Fee. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from To Fee or Not to Fee. All copyright, confidential information, patents, design rights and all other intellectual property rights of whatsoever nature contained herein are and shall remain the sole and exclusive property of To Fee or Not To Fee. The information furnished herein is believed to be accurate and reliable. However, no responsibility is assumed by To Fee or Not to Fee for its use, or for any infringements of patents or other rights of third parties resulting from its use. Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf Page 3 of 15 To Fee or Not to Fee, 2019. All rights reserved Table of Contents 1INTRODUCTION .4 1.1PURPOSE OF THIS DOCUMENT.4 1.2SERVICE4 1.3NEW PRICING GUIDELINE4 1.4CLIENT SEGMENTATION5 1.5SCOPE.5 1.6TRANSITION PHASES.6 1.7RELATIONSHIP TO OTHER DOCUMENTS6 2TRANSITION PLANNING.7 2.1TASKS & SCHEDULE.7 2.2GANT CHART9 2.3PROJECT BUDGET10 3COMMUNICATION PLAN.11 3.1BOOKING MEETINGS.11 3.2SCRIPT11 3.3CLIENT INFORMATION PACKAGE12 4REVIEW PROCESS13 4.1PROBLEM RESOLUTION.13 4.2TRACKING YOUR SUCCESS13 4.3CLIENT TRANSITION AND ACCOUNT TRACKING.14 4.4PROGRESS TRACKING15 4.5REASSESSMENT.15 Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf To Fee or Not to Fee. All rights reserved.Page 4 of 15 1Introduction The goal of this Transition Plan is to move the practice to a transparent compensation model in order to better align the advisors interest with the clients. This should lead to becoming the clients advocate, better matching of the compensation with the service being delivered, and reducing the clients cost over time. 1.1Purpose of this document The purpose of this plan is to outline the tasks and activities required to efficiently move the practice from a commission model to a fee model. 1.2Service The primary service offered will be an integrated financial planning and investment management service. The frequency of delivery and client reviews will be directly tied to the client revenue. 1.3New Pricing Guideline Investment Management Assets under $500,0001.50% $500,001 to $1,000,0001.00% $1,000,001 to $3,000,0000.75% Assets over $3,000,000 0.50% Financial Plan Flat fee ranging from $1,000 to $5,000 based on the estimated amount of time and level of expertise needed to complete the engagement Modular Financial Planning $400 per module Financial Planning & Counselling $175 per hour (minimum, one hour) Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf Page 5 of 15 To Fee or Not to Fee, 2019. All rights reserved 1.4Client Segmentation We currently serve 200 household clients. 5% A 10% B 27% C 58% D & E 25% 25% 25% 25% EQUALS 50% OF REVENUE SHARE OF ASSETS 1.5Scope The scope identifies the items that will and will not be transitioned within the project schedule. Outline how scheduled and unscheduled updates will be managed Scope includes Transitioning A, B, and C clients Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf To Fee or Not to Fee. All rights reserved.Page 6 of 15 Scope excludes the Secondary Transition phase option Increasing the revenue of D and E clients by offering fee-for-service financial planning Hiring a junior associate to manage, sell, or refer D and E clients Move D and E client accounts to mutual fund wrap 1.6Transition Phases The table below identifies the phases in the transition process and their estimated lengths of time. PhaseDetailsLength of time InitiationPulling together all resources and information needed to launch the transition 3 to 6 months Ramp UpFinalizing last minute details1 to 2 months Go LiveAll new clients are strictly taken on in the new model 1 to 2 months Main TransitionTransitioning A, B, and C clients12 to 18 months Secondary TransitionSee 1.5 scope exclusions12 to 24 months 1.7Relationship to Other Documents Describe this documents relation to other documents, such as: Document NameVersionLinkFormat Segmentation v.11Excel Transition tracking v.1Excel Revenue trend v.1Excel Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf Page 7 of 15 To Fee or Not to Fee, 2019. All rights reserved 2Transition Planning 2.1Tasks & Schedule Provide a detailed schedule (such as Work Breakdown Structure) that identifies all aspects of the transition plan such as start/end dates, responsibilities, tasks, transition phases, and due dates Tasks and DeliverablesResponsibilityPhaseDue Date Discuss with staff this new initiativeYouInitiation Switch all DSC PACs to FE 0%AssistantInitiation Order DSC mutual fund maturity report from all mutual fund companies AssistantInitiation Establish 10% and free unit shuffle scheduleAssistantInitiation Establish new (fee) service offeringYouInitiation Begin the search for a new fee-based platform provider (and/or broker/dealer) YouInitiation Segment clientsYou and assistant Initiation Identify six to eight clients who will form your beta transition group YouInitiation Set fee scheduleYouInitiation Modify Letter of Engagement and get approval from compliance You and broker/dealerInitiation Develop policy for handling DSC mutual fund assets post-transition YouInitiation Modify marketing plan to include fee model advantages You Initiation Estimate your income decline (if any) during the transition period and make provisions to meet expenses if need be YouInitiation Set target: number of clients to transition per week/month/quarter YouInitiation Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf To Fee or Not to Fee. All rights reserved.Page 8 of 15 Tasks and DeliverablesResponsibilityPhaseDue Date Design fee-based portfoliosYou, or outsourced to investment counsellor Initiation Establish process to track account transfers or conversions and PAC changes You and assistant Initiation Choose a new fee-based platform providerYouRamp Up Order forms from platform providerAssistantRamp Up Install investment management software from platform provider AssistantRamp Up Receive training from platform providerYou and assistantRamp Up Prepare script for client transition meetings and meeting package on the benefits of the new model YouRamp Up Begin to discuss the new model with clientsYouRamp Up Meet with beta client group to initiate the transition YouGo Live Assess any problems and concerns with the beta group and modify the plan as needed YouGo Live Take on new clients only under the new modelYouGo Live Call groups of eight to 10 clients for a transition appointment, or add the transition package to client files coming in for their annual/quarterly reviews AssistantMain Transition Assess any problems and concerns with each group and modify the plan as needed before going on to the next group of eight to 10 clients YouMain Transition Add a process for reviewing fees during client annual review meeting and have a mechanism in place for tax reporting YouPost Transition Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf Page 9 of 15 To Fee or Not to Fee, 2019. All rights reserved 2.2Gant Chart Use a chart to illustrate the estimated time required by month for each phase of the project. See Section 1.6 Transition Phases FY 2009 PhaseJanFebMarAprMayJuneJulyAugSeptOct Initiation Ramp Up Go Live Main Transition Secondary Transition Transition Target2888888 Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf To Fee or Not to Fee. All rights reserved.Page 10 of 15 2.3Project Budget Provide an overview of the budget that will support this project. The Project Budget captures the costs applied to an activity by assigning resources with associated rates or fees. NOTE: Include a % contingency in your plan by either listing specific risks that account for that % or by increasing your hours on each task to assume the % contingency Identify the budget amount allocated by budget phase Phase DeliverableBudget Amount InitiationDue diligence trip to new fee-based platform provider offices $1,000 Ramp UpStaff time to fill out new fee-based account forms for every client included in Main Transition phase $15/hr. X 84 clients X 0.5 hrs. = $630 Or ask new platform provider for transition support Go Live / Main Transition Pay account transfer out fees to ease the transition. Due to budget constraints, may have to restrict to A and B clients only $150 X (84 X 3 accounts (avg.) = $37,800 Or ask new platform provider for transition support Main TransitionStaff time to monitor transfers and PAC changes in new fee-based account $15/hr. X 84 clients X 1 hr. = $1,260 Main TransitionReserve fund to help manage the decline in revenue during the transition $ Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf Page 11 of 15 To Fee or Not to Fee, 2019. All rights reserved 3Communication Plan 3.1Booking Meetings Option 1: Have your assistant book a meeting with the target client list Option 2: As an alternative, meetings should be booked by the advisor to provide an introduction to the fee model on the phone and mail the transition package ahead of time. That way, the client is already familiar with the concepts and will be better equipped to make a decision in the first meeting. 3.2Script Prepare a script of the talking points to go over with a client on the benefits of the transition What I am proposing is completely optional, but I think you will see the advantages to making this change. Reasons for the change Up to this point, we have been selling you A-class mutual funds We have been compensated by the mutual fund company That compensation is the built-in conflict of interest in choosing mutual funds or other products We can eliminate that conflict of interest by using F-class and Index funds/ETFs Advantages for the client You have transparency for any fee charged on top of any MER and it is clear that I work for you Annual reporting is easier This aligns your interests with mine and eliminates any product bias due to built-in compensation You can control of the cost of investing You have potential tax deductibility You have the potential for increased service and time spent on your file Does that sound like something you would be interested in? Illustrations and handouts Amount of the advisors fees Total cost comparison (should be the same or less over time) Savings to the client between now and retirement/20 years Third-party articles on the benefit of fee advice Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf To Fee or Not to Fee. All rights reserved.Page 12 of 15 3.3Client Information Package The following is a list of items that you could include in the client information package to illustrate the benefits of the transition: Item Notification: A letter or information sheet explaining the reasons for the transition, or it could be an article written by the advisor Fee schedule or new letter of engagement Cost comparison chart and/or graph illustrating savings over time Two or three third-party articles on the benefits of the fee model CRA IT Bulletin on the deductibility of fees Forms for the client to sign to convert or transfer to new fee-based account Advisor Namee8a0c2abad1d299e5414a511ab88de6b.pdf Document Name: e8a0c2abad1d299e5414a511ab88de6b.pdf Page 13 of 15 To Fee or Not to Fee, 2019. All rights reserved 4Review Process Organize a process review to identify obstacles, track your transition success rate, and modify any defects in the plan 4.1Problem Resolution Identify and track the most common questions and objections in order to prepare a response or, better yet, address the issue in the initial presentation Most common questions and objections NumberPercentage of total 4.2Tracking your Success Describe the procedure for identifying, tracking, and resolving problems with the transition Number of clients: NumberPercentage of total Who transitione