How to work with advisors and fees

This article describes how to configure the structure of advisors within BFS and how to work with fee transfers among other things.

Let’s set the stage for this example.

You are a securities firm with associated financial advisors who manage numerous customers. The advisor is not hired by you but has their own advisor company where there are several advisors.

Let’s call these entities for Advisor Company 1, Advisor 1 and Advisor 2.

The Advisor Company 1 is created with the following settings:

Advisor 1 and 2 are created with the following settings:

We then need to navigate to Advisor 1 and 2 where we associate the Advisor with the Advisor Company.

In the Partner field we need to set the Advisor Company:

Now BFS will know which Advisor Company that the physical advisor is associated to and where fees should be transferred. Now we need to create advisor accounts with the Advisor Company for each Advisor to keep track of the money. We do this by navigating to the Advisor Company and create new accounts:

In the same view we can create the Power of Attorney that enables the Advisor to view the account.

Finally we will update what is called the Reseller Account for the Advisors to point at their Advisor Account:

 

Each time a new customer is created we simply have to enter Advisor 1 or Advisor 2 as the associated Partner to the account. We can now continue to transfer fees to the associated Advisor accounts and where the Advisor can see it and the Advisor Company can keep track of how much money they could pay out to each advisor.

A graphical representation of the structure is illustrated by the following chart.