Greater control and flexibility in Dion’s Fee Management solution expands offering for Killik & Co.

Abstract
Historically Killik & Co have outsourced much of their back office processing. To differentiate themselves from their competitors they wanted to bring in house key client touch points. As part of this journey, bringing in Fees processing was the next logical step. Killik & Co pride themselves on their bespoke services providing client focused personal relationships. They wanted a system that provided flexibility to support this ethos and their future business demands.

About KILLIK & CO.
Whether you are looking to grow your assets or create an income stream, Killik & Co can help you to make the most of your investment portfolio. Established in 1989, we focus on providing relationship-based advisory, managed and wealth planning services to retail clients, with an emphasis on accessibility, trust and integrity. Every client is allocated a highly qualified, dedicated Broker who can advise on a diverse range of securities listed on most of the world’s main stock markets.

2015 award

hargreave-hale-case-study

Business Challenge
Fee income is a major source of revenue for many brokers and investment managers. It is also potentially a key area in which firms can try to achieve a competitive advantage and USP.

The RDR and various comments coming out of the FCA about Fees & competition have increased end clients awareness of management fees. The Adviser Charging rules introduced by RDR and the likely changes for platform charges means firms will increasingly need to be able to support fee structures dictated by others. These demands and pressures will further increase the need for flexibility in the basis of fees.

Dion Fee processing solution
In a period of regulatory overload, a wave of legislation has come into force, aiming to bring greater transparency to the financial sector. This has meant an increase in the administrative burden faced by brokers and wealth managers.

Our solution helps reduce costs and increase margins. Firms can improve efficiency, accuracy and auditability, while offering the more complex and diverse fees that a post RDR world demands.

Transparency
One of the specific principles reflected clearly in the MiFID II recommendations is, "Improved transparency to clients with clear illustration of what they are paying and how that will affect the return on their investment".

Our solution enables firms to demonstrate transparency in calculation, amendment and reporting of all cost to client.

Flexibility
Increased competition means wealth managers are under pressure to make bespoke fee arrangements with individual clients. With growing investor expectation, we are likely to see increased demand for performance-based fees. This is making fee structures more complex and fee administration cumbersome. Wealth Managers employing technology can move from half yearly to monthly fees, which not only eases cash flow but also is fairer for the client. The magnitude of the possible improvement cannot be overstated.

Efficiency
Many firms rely on staff to re-key data into sundry spreadsheets and download information from various sources. Our solution can automate and streamline these processes, significantly reducing the attendant drain on manpower and time.

Once set-up, this translates directly to reduced overheads. Switching from manual to automatic processes can reduce the fee calculation process from around a month to just a day.

Accuracy
Our solution will improve the accuracy of fee calculations, meaning less effort is expended resolving errors and improving the likelihood that fees are paid on time.

Automation Reviewing proposed fee in an automated, rather than manual way, allows one to look after many more clients for the same time and effort.

This has the potential to increase assets under management without a proportionate increase in costs.

Scalability
Growth brings with it the need to process an increased volume of fees, so scalability in fee processing is crucial and achievable through investment in technology. There also is a more direct impact on cash flow. Fees, even the most complex ones, can be calculated more frequently and collected in a timelier manner.

Reporting and MI
The solution provides reporting and auditing at every stage - calculation, billing and charging. Clear and simple illustration of the fee schedule to affected parties is a key functionality. Comprehensive Exception reporting and Management Information is core to the solution offering.

Why Dion Fees

Dion's fee processing module is a flexible and automated framework to support the calculation and charging of any fee type or structure. It provides wealth managers, stockbrokers, asset managers and intermediaries with a viable solution to easily manage the complex sharing of fees and reduce the level of manual processing.

The system is scalable and can easily support new business while simultaneously maintaining all existing and often complex arrangements with clients, advisors and other stakeholders. With the choice of a hosted or deployed setup, the system can be seamlessly integrated with any third party application.

    Key Features
  • Transparent calculation and collection of fees. From clients to advisors and anyone receiving a service from the firm
  • A single installation supports multiple setups, proving an efficient calculation and charging structure
  • Flexible accrual and billing timeframes support changing business requirements
  • Seamless integration with any proprietary system ensure accurate data flow
  • Available as a Saas (Software as a service) offering or as a fully deployed solution


Dion press release   The proven fees calculation engine and strong exception reporting gave us the confidence to bring this process in house. The system integrated well with our internal procedures and processes. Reconciliation and accountability of the fees charged reduced operational risk for the firm.”

RICHARD O’NEILL

Partner, Operations Director | Killik & Co.

The transparency provided by Dion’s solution will help support Killik & Co in their compliance with the Fees and Charges disclosure under MiFID II.

Dion press release   We have known and worked with the team at Dion for many years and their experience in this industry is second to none. The selection process for any solution such as this must include the quality of the people, personal relationships and the ability of the vendor to work in partnership with us for many years in the future. Dion ticked all of these boxes and we are excited to be working with them.”

CLEM MACTAGGART

Partner, Chief Operating Officer | Killik & Co.

Fee Management Solution

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