COMPENSATION MANAGEMENT BY NEXUS

What is Nexus?

The Nexus platform is a highly configurable web application that allows consolidation of multiple technology vendors into one solution. Whether you’re a BD or RIA, Nexus offers a perfect balance between providing regulatory compliance and supplying the majority of basic operational tools required by individual advisors and for your firm to advance your book of business, all while retaining the ability to accommodate the differences encountered from firm to firm and advisor to advisor.

Common Advisor Compensation Difficulties for BDs & RIAs

Calculating fees for accounts receiving advisory services is frequently expensive, inefficient, time-consuming, or some combination of all those factors. Many firms use manual spreadsheet-based processes while others use software solutions requiring far too much manual intervention to cover more complicated billing scenarios. Below the line security/cash exclusions, flow adjustments, fee rejections due to low cash, and third-party or even first-party model costs add enough complexity to client fee billing to result in a labour-intensive process every billing cycle. This is all compounded by the SEC’s renewed regulatory focus on the accuracy of advisory fees as calculated and billed to clients. The more manual a complex process is, the more likely there is to be unintended errors.

How Nexus Can Help

• Compensation Module: Advisor compensation is usually at the top of the list of absolutely mission critical functions a BD/RIA is expected to provide. The Nexcom compensation module provides unparalleled capability to control how revenue is calculated and ultimately paid to advisors through a sophisticated rule-based system. For over 12 years, Nexus has allowed our client firms to honour very complicated payment arrangements regardless of product types, revenue sources, or inter-advisor relationships (such as split codes)

• Ability to honor virtually any payment arrangement whether it is grandfathered methods, current methods, one-off methods agreed upon during recruitment, or succession plans involving book of business purchases.

• Accurate multi-member compensation calculations (split codes). Nexcom imposes no limitations on the number of members of a split code nor what percentages each member is contracted to receive.

• Any fees or payout retentions involving split codes can be configured to come from the gross revenue or at any point along the path of arriving at final net payouts.

• Period closings can be any arbitrary date so paying monthly, bi-monthly, and even weekly is all supported. There is no limitation to a set schedule imposed so adjusting a pay period based on a holiday is a non-issue.

• Overrides on revenue generated by one advisor and paid to another entity/person are all supported.

• Rules can be made to automatically adjust payout levels based on gross revenues over a date range. Rules can also be made to be self-expiring for those payment arrangements intended to be temporary.

• Fully integrated with the compliance and supervision capabilities of Nexus allowing revenue to be withheld from payment while NIGO or other compliance concerns are addressed such as licensing gaps, CE status, suitability checking, Reg BI requirements, and so much more.

• Modern web-based portal for advisors to review their pending and paid compensation details and retrieve PDF statements reflecting full transactional detail of all payable transactions constituting their compensation period.

• The system can provide 1099 tax forms for advisors and distribute them through the advisor’s web portal.

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