Welcome to REMeX Solution for Advisers

Advisers can engage with the client in a transparent fee remuneration model and demonstrate true independence from the product manufacturers thereby creating a clear service model with clients.

By utilising it’s proprietary Revenue Management Exchange – REMeX offers a service that converts commissions into revenue that clients can use to pay fees. Instead of the payment being determined by the manufacturer it gives the necessary control for true client independence.

Client Directed Charging Model

The Financial Planning Association’s Financial Planner Remuneration Policy, released in October 2009 states, in relation to a Client directed charging model:

“A model that requires all payments to be provided directly by the client, irrelevant of the charging model used. This can typically include: asset based, service based or time based.

If a client’s investment or insurance choices only allow for commission or planner based payment then the Planner rebates all income received from any product provider to the client and charges the client directly for the financial planning services they provide.”

Interpretation: What we believe this is saying is that receiving trails and offsetting these against fees is not good enough. The adviser must pay all trails directly to the client and then separately invoice the client for the full amount.

What is the REMeX Solution?

Practices that operate as fee for service will often receive trail commission on legacy products. Up until now practices would typically receive these commissions and then offer to offset this revenue against fees to be paid by the client. This process is less than ideal because not only can it be inaccurate and time consuming, it fails the key test of “client control”.

In addition one of the 6 principles outlined in the FPA policy is:

“Clients must agree a fee with their financial planner and can request that the fee is switched off if no on-going advice is required ”

By receiving the trail commissions and offsetting them against fees the practice retains control over this process and clients are left to rely on the practice to accurately account for and then offset the commission against fees.

The ultimate question is – if the client decides they don’t require further advice and want the fee switched off, what happens to the commissions?

An efficient way of giving clients true control is to pass the commissions through a commission rebate and conversion service which can operate under the client’s directions. Commission payments will be processed through the service and then be available for use by the clients to pay fees as agreed with their planner.

The essence of the problem with commissions is not that they are paid by manufactures but rather that the client has no say in the payment – the REMeX Solution achieves this control.