Excel is editable - in the hands of multiple parties - without safeguards against misclicks or typos. A simple stroke of the key and your client’s fees are incorrect. An incorrect fee means you’ve breached your contract and fiduciary duty.
With Smart Kx software you don’t run the risk of those manual typos that cause you anxiety. You’ll be confident your billing is correct.
“Does the fee match the client contract?” is a seemingly basic question. But advisors only get it correct about 50 percent of the time when they are examined. The SEC has let this problem go because “it is really hard” to keep contracts and fees congruent. As technology progresses that excuse won’t work anymore.
You know an SEC review is coming. You know what the questions will be. Be prepared. With Smart Kx it is easy to ensure contracts match fees. Don’t fear the SEC again.
Your current manual processes are extremely error prone and exceedingly labor intensive. You run regulatory risk of the contract not matching the billing fee every time someone opens a spreadsheet. The entire billing process can take weeks to calculate and invoice, reducing your overall cash flow. And the burden put on your staff takes away from serving your clients.
Smart Kx software automates your current manual processes allowing staff to focus on your clients. Clients are happier and trust you more. Staff is happier and less stressed. You are happier and confident. Plus with all the time saved using automation, imagine the capacity you’ll now have to bring on more clients!
During market corrections, the first thing clients ask about are their fees. That’s when you’ll need to “prove up” billing with the original contract. Incorrect fees are an easy target for unhappy clients, their attorneys and a U-4 complaint.
Using Smart Kx software, your fees will always match the client communication. You can relax in any market, no matter who’s inquiring - the client or their attorney.
Smart Kx’s platform ensures that agreed-upon client fees are documented correctly and are calculated exactly as the contract describes, clearly and automatically without manual processes or risk exposure. Calculating and collecting accurate client fees is part of your fiduciary duty and in your clients’ best interest.
How Smart Kx System Works
Send fee agreements for client signature or notice directly from our interface. Smart Kx keeps a record of the client relationship including fee arrangements, adjustments, communication with client and review for seamless compliance and audit.
The fee arrangement is the fee calculator and calculates the fee exactly as agreed to, ending fee inaccuracies and manual excel spreadsheets.
Combining the fee arrangement and fees into one system allows CCO’s to review fee calculations in real time, reduce risk and eliminate traditional audits and ineffective “sampling.”
As an attorney and outside compliance consultant, I witnessed RIAs continually struggle with fee calculation. The manual process was prone to errors. Contracts-versus-fees only matched 40-60 percent of the time when audited by regulators. And the billing cycle took months.
Two big issues perpetuated this cycle:
1. Current technologies aren’t sufficient to document or calculate various fee structures.
2. The fee arrangement and calculation are completely separated, and at risk of not matching.
Smart Kx software solves these issues through automation so you can focus on serving your clients. When you implement Smart Kx you can be confident fees match the fee agreement and look forward to collecting revenue faster.
Schedule a meeting with me today to see how automation will change your business!