3.20.1 Process RDR Parameters

This topic provides information on processing RDR Parameters.

The system will charge front end fees, post RDR, based on the transaction category. The system will charge front end fees for transactions classified as Legacy/Direct Business and Execution Only Business done through a UK domiciled advisor.

For agent hierarchy, you need to map appropriate transaction category – depending on the business needs.

• Case 1: If agent is domiciled in UK, then irrespective of the hierarchy, they may follow RDR rules.
• Case 2: If agent is not domiciled in UK, then irrespective of the domicile of other entities in Hierarchy, they may not follow RDR rules.

Post RDR, the system will compute trail commission based on transaction category for the transactions, such as, Legacy/Direct Business and Execution Only Business done through a UK domiciled advisor. For Advised Business done via a UK domiciled advisor, the system will not compute trail commission. You can maintain different rates of trail commission for the different transaction categories.

You can also set up configuration such that all trailer commission on legacy business get paid to the unitholder.

ost RDR, the AMC can maintain the same management fee for transactions done through a UK domiciled Advisor and give rebate to investor. The management fee (periodic load) with From Entity as AMC and To Entity as Unit Holder to be given based on appropriate mapping.

In case of a Product periodic load, if at Unitholder level, and if Trailer commission preference at UH level is reinvestment, then the system will generate transaction into CMA fund for the UH on trailer commission payment date. If CMA fund is not maintained, then the system will generate reinvestment transaction into the preferred fund.If preferred fund is not maintained, then the system will generate reinvestment transaction for all funds available in the policy for which trailer fee has been computed.

The transaction category for this transaction will be legacy/execution depending on the advisor is UK domiciled or non UK domiciled. In case of reinvestment of trailer commissions, the transaction category will be updated as follows:

• Post RDR date, if default broker at UH level is UK domiciled and advise mode at UH level is Advised, then the transaction category will be Advised Business, else it will be Execution Business.
• Pre RDR Date, if default broker at UH level is UK domiciled, then the Transaction category will be Legacy/Direct Business.
• If default broker is non UK domiciled, the generated transaction will have the transaction category as Legacy/Direct Business.

The AMC can also decide to lower the management fee to be charged when the advisor is domiciled in UK. The new lower management fee with appropriate category for Advisor domiciled in UK will be mapped.