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REMeX offers the ideal solutions in commissions and revenue management for financial advisers
Financial advisers in Australia trying to find the right client remuneration model need no longer look any further than REMeX – Australia’s newest and most convenient way of managing trail commissions.
REMeX (which stands for Revenue Management Exchange) has been launched by the founders of the highly innovative MyMoney Australia service for retail investors, and is specifically designed to help Australian Financial Services Licence deal with the sometimes
complex problem of managing an effective and efficient fee-for-service model.
Put simply, REMeX takes over much of the hard work for advisers by collecting trail commissions from financial product manufacturers and converting them into revenue which clients can use to pay fees.
REMeX lets advisers engage with the client in a transparent fee model and demonstrate true independence from the product manufacturers, thereby creating a true client directed r fee-forservice model.
“All advisers should by now be aware that the Financial Planning Association is requiring them to adopt a client-directed payment model,†joint head of REMeX sales and marketing, Paris Kritikos, said.
“There are two key issues advisers face when looking at the FPA’s remuneration policy, namely that receiving and offsetting trail commissions is not enough to satisfy the full intent of a client directed fee model, and how do advisers handle the trail from clients that are no longer active when the FPA stipulates that clients should incur no cost if they get no service,†he said.
Kritikos said that a key feature of REMeX is that it can offer different solutions to practices with different needs. While some big advisory practices have an efficient commissions management system in place, other groups are looking for ways of removing this issue from their practice altogether.
“REMeX offers both an end-to-end solution and an integrated model, so advisers can choose which suits them better,†he said.
In the end-to-end model, the practice outsources the collection of trail commissions to REMeX, which takes over the full commission management and reconciliation process and provides the mechanism for the operation of a client directed payment model. In the integrated solution, by using a practice’s existing commission process and data files, REMeX minimizes the impact on the practice of transitioning to a client directed payment model.
The end result is the adviser, in conjunction with the client, determine and agree a fee. REMeX can then facilitate the collection and offsetting of any trail commissions on the client’s behalf.Therefore, the adviser ends up with even greater control of the revenue compared to receiving payments from product providers.
The key features of the REMeX commission rebate and conversion service are:
• Ability to operate a model where the adviser retains the servicing rights.
• Ability to implement with no impact to existing products.
• Client control and transparency.
• Flexibility on payment frequency – able to accrue cash daily and pay at least monthly.
• Provide 24/7 access to account balances to both client and adviser.
• Able to facilitate fee payment by allowing the client to set fee payment thresholds.
• Ability to integrate reporting with external accounting admin packages.
“REMeX means you can maintain your revenue levels whilst transitioning to fee-based services,†Kritikos said.
Go to: www.remexsolutions.com.au
For further information, please contact:
Paris Kritikos
Sales & Marketing
REMeX
P: 02 8226 1515
M: 0419 278 753
Simon Lloyd
Access Public Relations
P: 02 9279 4100
M: 0424 470 923
E: simon@accesspr.com.au