What you need to know about our premiere fee-based account.
In today’s marketplace, being a fee-based advisor is shifting from a competitive advantage to a competitive necessity driven by the demand for advice, the impending boomer wave, and the expanded role of the advisor. Going forward, there’s every reason to believe that fee-based advice will become the predominant service model among advisors.
The GP Wealth Signature Service Account
A unique fee-based platform
The evolution of fee-based advisory practices has been a positive trend for the advisor and client. As an advisor, your clients can benefit from increased objectivity with regard to investment recommendations, and from the ongoing service provided. In addition to client benefits, fee-based pricing can help you as an advisor create a more productive and profitable practice by growing assets under administration and allowing the ability to serve wealthier clients. Fee-based platforms also encourage “family” account management, allowing advisors to better position themselves for generational investment planning and retention of assets.
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Signature Service Account FAQ
Frequently Asked Questions About Our Signature Service Account
In this FAQ, we answer the most common questions asked about Signature Service Account. If you have any specific questions, send us an email and we would be pleased to help.
How do you calculate advisory fees and when are they billed?
Advisory fees are calculated monthly by the scheduled rate multiplied by the total value of the assets in the account on the last day of the month. Please see the GP Wealth Signature Service Account Addendum and refer to section 3, “Advisory Fee Schedule”.
For near-term goals, those in the next year or two, we will recommend using cash equivalents. For your in-between goals, we will recommend a combination of stock funds and short-term bond funds that reflects the length of time until you need the money.
Are advisory fees pro-rated from account opening?
Yes, advisory fees are pro-rated from the start date to the end of the first month.
How do I open a GP Wealth Signature Service Account?
Complete the GP Wealth Investor Profile Questionnaire with your Financial Advisor to prepare an Investment Policy Statement (“IPS”). Once the IPS has been completed then a GP Wealth Signature Service Account Addendum, GPWM New Account Application Form and B2B Bank Financial Services Account Application must be completed.
Are advisory fees pro-rated from account opening?
Yes, each account is billed based on the total asset amounts and advisory fees are reduced as the total asset amounts meet certain tiers. Please see the GP Wealth Signature Service Account Addendum and refer to section 3, “Advisory Fee Schedule”.
What is the minimum asset amount to open a GP Wealth Signature Service Account? Do multiple related accounts let you deviate below the minimum requirements?
There is no minimum asset amount required to open a GP Wealth Signature Service Account. Please see the GP Wealth Signature Service Account Addendum and refer to section 3, “Advisory Fee Schedule”.
What happens to the advisory-fee calculation if the asset amount grows dramatically?
The calculation is aligned to the tiered rate schedule, and you benefit from the immediate increase in assets. The fee value changes accordingly based on the total asset amount. On a tiered rate model, the calculation changes to include a weighting for the new pricing constant.
How does the advisory-fee billing work with multiple related accounts? Does the charge apply to one or all accounts?
The accounts are charged separately as if the accounts are all independent.
Are registered plans charged a trustee fee for fee-based accounts?
All trustee fees associated with the GP Wealth Signature Service Accounts that are registered plans are incorporated into the “Advisory Fee Schedule”. There are no additional fees. Please refer to the GPWM Compensation Disclosure Document for a complete fee schedule.
Can I invest in all different types of securities in the GP Wealth Signature Service Account?
Yes, but there are some exceptions. You should inquire with your Financial Advisor to verify that the products you would like to purchase are approved products.
Family Pricing Program
Get to know our Family Pricing Program
With our Family Pricing Program, you, your spouse and other family members can combine the value of your assets under management for the purpose of calculating a reduced annual advisory fee. In this way, everyone benefits from the lower fees that apply to larger investments in accordance with our tiered fee structure. And it provides the framework to develop a cohesive estate planning process for your entire family. Below is an example of how you can benefit from the family pricing option.
Types of Investment and Retirement Products
| Client / Family Member | Portfolio Size | Pricing Category | Advisory Fee* |
|---|---|---|---|
| Client / Spouse | $400,000.00 | Household Pricing | 1.219% |
| Parents / Children | $550,000.00 | Extended Family Pricing | 0.921% |
| Business Entity | $200,000.00 | Add Entities (Corporation / Partnership / Trust) | 0.796% |
| Total Assets | $1,150,000.00 | All Members Receive Tier 4 Pricing | 0.796% |
* By bundling all family member plans together, everyone can benefit from the lower fees charged at the higher tier. Please refer to the GP Wealth Signature Service Advisory Fee Schedule.
Building a family group
Family grouping rules are flexible and allow for different combinations of family members to be grouped under the primary account holder. The family group can be any combination of:
- (a) Spouse, including common-law partner
- (b) Children and their spouses.
Grouping other eligible accounts
It’s also possible to group other types of accounts:
- (a) Joint Accounts: Any joint account where any of the family members can be identified as beneficial owners can participate
- (b) Corporate Accounts: Any family members who are beneficial owners of greater than 50% of the voting equity can also participate.
Bundling Program
Get to know our Bundling Program
Our Bundling Program allows you to combine different account types and asset types (RRSPs, TFSAs. RESPs and GICs) to obtain the lower advisory fee charged at the higher tiers. In addition to saving money on advisory fees, you also benefit from consolidating and streamlining your asset management within a cohesive personal financial plan. Below is an example of how you can benefit from the bundling option.
Bundling Pricing Option
| Account Types | Bundled Portfolio Size | Advisory Fee |
|---|---|---|
| RRSP | $250,000 | 1.35% of AUA first $250,000 |
| TFSA | $100,000 | 1.25% of AUA next $350,000 |
| RESP | $150,000 | 1.175% of AUA next $500,000 |
| OPEN | $400,000 | 0.944% of AUA next $900,000 |
| Additional Family Accounts | Portfolio Size | Advisory Fee* |
| Other Accounts | $400,000 | 0.808% of AUA over $1,300,000 |
| Additional Assets | Bundled Portfolio Size | Advisory Fee |
| GICs | $100,000 | 0.786% on AUA of $1,400,000 |
| Entity Account | $400,000 | 0.681% on AUA of $1,800,000 |
| Total Assets | $1,800,000 | 0.681%* of AUA |
* By bundling all assets together, your clients can benefit from the lower fees charged at the higher tier. Please refer to the GP Wealth Signature Service Advisory Fee Schedule for complete details.
Grouping other eligible accounts
Family grouping is available as part of our Family Pricing Program. The rules are flexible and allow for different combinations of family members to be grouped under the primary account holder. The family group can be any combination of:
- (a) Spouse, including common-law partner
- (b) Children and their spouses.
Compensation and Fees
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Related Information
Fee for Service
There are clear benefits to a fee-based practice, but transitioning requires planning to maximize results and overcome challenges. If you’re thinking of transitioning your practice to a fee-based model, it’s important how you communicate this decision to your clients!
Begin by highlighting the ways your new compensation structure will benefit your clients
It enables you to offer clients a broader range of services, such as retirement and estate planning, with appropriate compensation for your time and effort
- It provides a transparent and uncomplicated method of compensation and simplifies reporting
- It may allow clients to deduct fees for non-registered accounts offering an additional tax-planning opportunity
- Through our Family Pricing Program, we combine all client account assets with those of their spouse or family member in order to pay even lower fees.
- When clients bundle additional assets like GIC’s and other accounts, they benefit from further fee reductions.
- It reduces the perceived conflicts of interest that are inherent in transaction-based commission platforms
Your personal relationships with your clients are the root of your practice. Under the GP Wealth Signature Service Account, you and your client may focus on what matters most – building an investment portfolio designed to help them meet their goals.
The GP Wealth Signature Service Account is an exclusive fee-for-service platform that incorporates a process to effectively manage your client’s needs, compete for high end clients and make management fees transparent. With a wide variety of industry-leading financial products to choose from it opens up new possibilities for both advisors and clients. Leverage your full range of expertise and ensure you are compensated for the value you deliver.
Fee for Service
There are clear benefits to a fee-based practice, but transitioning requires planning to maximize results and overcome challenges. If you’re thinking of transitioning your practice to a fee-based model, it’s important how you communicate this decision to your clients!
Begin by highlighting the ways your new compensation structure will benefit your clients
It enables you to offer clients a broader range of services, such as retirement and estate planning, with appropriate compensation for your time and effort
- It provides a transparent and uncomplicated method of compensation and simplifies reporting
- It may allow clients to deduct fees for non-registered accounts offering an additional tax-planning opportunity
- Through our Family Pricing Program, we combine all client account assets with those of their spouse or family member in order to pay even lower fees.
- When clients bundle additional assets like GIC’s and other accounts, they benefit from further fee reductions.
- It reduces the perceived conflicts of interest that are inherent in transaction-based commission platforms
Your personal relationships with your clients are the root of your practice. Under the GP Wealth Signature Service Account, you and your client may focus on what matters most – building an investment portfolio designed to help them meet their goals.
The GP Wealth Signature Service Account is an exclusive fee-for-service platform that incorporates a process to effectively manage your client’s needs, compete for high end clients and make management fees transparent. With a wide variety of industry-leading financial products to choose from it opens up new possibilities for both advisors and clients. Leverage your full range of expertise and ensure you are compensated for the value you deliver.
6 Key Benefits of a Fee-Based Practice
Professionalism
Your expertise and un-biased advice are seen to have the clients’ long-term financial goals in mind. Having complete transparency for your services allows clients to view your advice as truly objective and impartial
Client-Focused Relationships
When adopting a fee-based model, any perceived conflict of interest could diminish because recommendations aren’t tied to commissions. It takes away the pressure to sell and opens up the door to more opportunities for long-term relationships.
More Assets
Implementing a fee-based model can benefit your clients’ bottom line. As client’s assets under administration grow, it provides the flexibility to reduce their fees, which could encourage them to consolidate their assets with you.
Transparency
When clients pay a percentage of AUA, it enables them to quantify the benefit of value-added services offered such as portfolio reviews, estate planning, debt management, pension issues, etc. It provides a transparent, simplified and uncomplicated method of compensation and simplifies reporting.
Tax Deductibility
Since advisory fees are separately charged, your clients could claim the fees in a non-registered account as a tax deduction resulting in potential savings. Combined with lower fee-based product lines, the net costs for your clients may be lower.
Stable Income Stream
Fee-based practices tend to have more stable income flows because your fee is tied to service provided instead of the amount of transactions performed. As well, the income flow you create will tend to make your practice easier to sell when the time comes for you to retire.