Carrying 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 416-934-7029 firstname.lastname@example.org Contents 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 investment LIRA/LRSP Fully Functional LIF/LRIF/PRIF Web Front End Open Investment Accounts Secure TFSA Adaptable for evolving industry 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 LIRA/LRSP LIF/LRIF/PRIF 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 program Transition Services Migration Assistance Program Transfer In Program (MAP) Bulk Transition Services NDEX Systems reporting tools 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 Carrying Dealer Services 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 collection 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 year 14 (C) MRS 2010 Sample Month end statement Clear disclosure of monthly fee amount Clear disclosure of fee payment method 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 accounts 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 Carrying Dealer Application of Services MRS Fee For Service 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 Carrying Dealer Thank you Services Questions?
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