MRS Trust To Fee or Not to Fee by alicejenny


MRS Inc.                                                           Dealer
MRS Securities Services Inc.                                       Services
MRS Correspondence Corp.

Fee for Service
Offering and Applications

                               Gus Tsagogeorgas
June 2010
                               Regional Business Development Manager
     Who is MRS?
        The Carrying Dealer for MFDA, IIROC and ICPMs?

     The MRS Fee-For Service Offerings
        Retail Offering
        Wholesale Offering

     Advisor Application of Fee for Service

     Questions

2                                                (C) MRS 2010
    MRS Background
      Celebrating our 26th anniversary in financial services
      MRS Group of companies is comprised of:
         MRS Inc – MFDA member firm
         MRS SSI – IIROC member firm
         MRS Correspondence Corp – AMF member firm
         MRS Trust Co – Federally regulated trust company

      Only carrier in Canada who can service all three
       regulatory platforms, MFDA, IDA and AMF

      100% owned by Mackenzie Financial and backed by
       parent company Power Financial Corp.

      200+ staff with offices in Toronto, Quebec and B.C.

3                                                         (C) MRS 2010
    Corporate Structure

           Largest mutual fund manager in Canada
           Total assets under management of over $100 billion
           Power Financial Group - Majority Shareholder

4                                                                (C) MRS 2010
    MRS Market Position
    Segment        Services                                        Size
                   Back-Office Platform for Nominee Accounts,      144 MFDA Dealers
    Dealers        Reporting, Records, Custody, Investor           13 IIROC Dealers
                   Protection                                      24 AMF Dealers

                   Nominee Accounts, Concurrent (not
    Advisors       sequential) Trading, Reporting, Alerting and    15,000+ Advisors
                   Account Management

                   Security, Flexibility to hold, manage           330,000+ Accounts
    Investors      consolidated accounts, reporting on all types   70% of Third Party Nominee
                   of assets                                       business in MFDA channel

                   Mutual Funds, Fixed Income, Equities and
    Assets         most other assets
                                                                   $23.5B Under Administration

                                                                   1.75M mutual fund trades/year
                   Mutual Funds, Equities, Fixed Income,           50,000 equities, fixed income
    Transactions   Transfers                                       trades/year
                                                                   76,000 transfers/year

5                                                                                 (C) MRS 2010
    Back Office / Our Platform
     Solid Foundation           Account types
       Developed over the last   supported
          25 years                      RRSP
         Multi-million dollar          RRIF
                                        LIRA/LRSP
         Fully Functional
                                        LIF/LRIF/PRIF
         Web Front End
                                        Open Investment Accounts
         Secure
                                        TFSA
         Adaptable for evolving
         Flexible and              Specialized accounts
          customizable                  Fee for Service
         Regulatory compliant          Group RRSP
          and fully audited             DPSP
         Cost effective                IPP

6                                                          (C) MRS 2010
    MRS Services
     Complete back-office platform
         Industry leading proprietary software to support Mutual
          Funds, Equities and Fixed Income registered in Nominee
          Name                                                              Account Types
         Complete account management for transfers, trading, PACs,         Open
          SWPs, and payments.                                               Investment
         Reporting and alerts for Dealer, Advisor and Investor             RRSP
         Fully compliant with CRA, IIROC, MFDA and AMF                     RRIF
     Front-office access options                                           Group Plans
         Access through Dealers’ existing front office systems such        IPP
          as Univeris, RPM                                                  Fee For
         Access through No-Charge MRS Web based Advisor Access             Service
          for account inquiry, trading, statements, EFT and e-alerts

     Full suite of services and support
         Bilingual Call Centre for Dealers, Advisors and Investors           TFSA
         Service Advocates specializing in operations and efficiency
         Options for wholesale arrangement - custom fees, branding
          of forms and statements

7                                                                       (C) MRS 2010
    Services and Support
     Online Support and                     Business Development
      Services                                Team
        All forms, how-to guides,              Regional Representatives
         service description                     supporting advisors
        Online account inquiry, trading,       Institution Representative
         reporting, statements                   supporting strategic dealers
                                                Marketing and Communication
     Client Services
        General Call Centre                 “Grow Your Business
        Advisor Plus Services                Programs”
        Service Advocates                      Advisor recruitment assistance
     Transition Services                       Migration Assistance Program
        Transfer In Program                     (MAP)
        Bulk Transition Services
                                             NDEX Systems reporting

8                                                                     (C) MRS 2010
    MRS Transfer-In Program
     Financial Support
         Cover the ‘transfer-out’ cost of changing platforms
         For large transfers – cover the cost of administration

     Dedicated Resources
           Business Development Manager
           Service Advocate
           Transfer in Program team
           Systems support
           Customer Service

     Project Support and Deliverables
           Project plan and management
           Pre-fill application and transfer forms
           Financial Assistance
           Manage transfer process
           Training on MRS platform and processes

9                                                                  (C) MRS 2010

MRS Fee for
Service Offering
 MRS Fee For Service Offerings
      Retail                            Wholesale
         Target for Independent           Target for Dealer to
          Advisor to service                customize as a white label
          individual client accounts        offering

         Simple and complete              Very Flexible and
             MRS Client Agreement          customizable
             Simple fee formula              Dealer/Advisor develops
             Fees collected monthly           fee model and formula
             Sell-out done by MRS to         Sends MRS Electronic feed
              collect fees                     of accounts and fees
             Monthly statements              Advisor ensures there is
              including fee collected          cash in accounts to collect
              disclosure                       fees
                                              Typically fees collected
         Compliance Reporting for             quarterly
          the dealer
                                           Compliance Reporting for
                                            the dealer

11                                                              (C) MRS 2010
 Retail FFS – How does it work?
  Advisor negotiates yearly fee with investor
      MRS Provides one page agreement form
  Fee range of 0. 25% to 1.50%
      Fee calculated on month end settlement date assets
  Fee pro-rated and collected monthly from client
  Fee remitted monthly to dealer net of MRS fee
  MRS. admin fee is 0.25% per year
      Minimum $12.50 per month
      Maximum $300 per year
  No annual account fee in addition to monthly charge
  No linking between other FFS accounts or across to annual fee
   based accounts
  All other account fees apply, all subject to GST
  Monthly fee payment from either holdings or PAC on bank account
  No minimum or maximum account size

12                                                          (C) MRS 2010
 Wholesale FFS – How does it work?
  Dealer/Advisor establish a FFS model
      Model based on Account Size, Asset Type, Service
       Level and/or return produced
      Select or develop a ‘calculator’ to determine fees
       (Ndex Systems)
      Develop a client IPS and disclosure

  Fee for Service Collection
      Advisor sells out of asset positions to ensure cash is
       available in the account
      Dealer submits an electronic file to MRS for
      MRS collects the fees and remits to dealer/advisor

13                                                   (C) MRS 2010
 Sample year end statement

                          Clear disclosure of fee
                           amount paid for the

14                                 (C) MRS 2010
 Sample Month end statement

                           Clear disclosure of
                            monthly fee
                           Clear disclosure of
                            fee payment

15                              (C) MRS 2010
 Compliance reporting

                         Fee For Service exception
                          report identifies assets in
                          account s which generate
                          revenue such as
                          commission or trail

                         Daily report acts as a
                          secondary compliance
                          review for fee for service

                         This report is available to
                          both advisors and dealers

16                                  (C) MRS 2010
 Benefits of MRS Fee For Service
    Stability of corporation and platform
    Extensive suite of online tools
    Enhanced service and support model
    MFDA compliant solution
    FFS account type up an running for over three years
    Monthly reporting to dealer, advisor and investor
    Monthly fee remittance to dealer
    Automated trade execution
    Easy transition for existing accounts
       One page addendum is all you need
       Same basic process for new accounts
  Year-end fee summary for tax consideration

17                                                  (C) MRS 2010

Application of

MRS Fee For
 Application of FFS
  Based on Client Need
      Client request for full disclosure
      Advisor needs more compensation for service (GICs,
       Bonds, Low MER Funds)
      Advisor needs to competitive for a high net worth clients
       with brokers using SMA accounts

  Based on product
      Product only available in “F” class
      Product does not pay commission or trail

  Based on Business and Practice
      Advisor practice based on FFS
      ICPM manager with a fees

19                                                     (C) MRS 2010

Thank you


To top