Back in April, the US Securities and Exchange Commission issued a risk alert on advisory fee billing and compliance. Of the six most frequent compliance issues they outlined, BillFin can help ensure the top five are not concerns for your fee billing (see our June article). Let’s start with issue number one: Fee Billing Based on Incorrect Account Valuations. BillFin is extremely flexible and simple to use. The workflow is as simple as calculating fees, exporting your invoices, and then exporting your debit files. Since the first step is critically important, you will need your management fees to be correct and for that, the account valuations must be correct.
On April 12th, the Office of Compliance Inspections and Examinations released a 4-page risk alert detailing the most frequent issues with advisor fees and expense compliance. We encourage you to review the alert on their website provided below. We also want to assure you BillFin is the solution to the concerns they raise. Please read Redi2’s statement below the link for some peace of mind regarding your fee billing practices when using BillFin. The major concern expressed in the risk alert is that advisors are simply not billing in accordance with the terms in their Form ADV and other materials that are provided to their clients. The most frequent compliance issues they list are outlined below.
Von Borstel & Associates, Inc, an advisory firm in Portland, Oregon, has been using BillFin since its introduction. “We value our independence as a firm and embrace new technologies that support this,” said von Borstel advisor Craig Smith, CFP®, ChFC®. “BillFin allowed us to become more independent, bill clients at a household-level, and do it