Automate away your burdens: managing retrocession and trailer fee calculations can often be an extremely time-consuming and tedious task, with no guarantees that the final number is accurate. However, with so much riding on a correct figure, it is vital that retrocession payments are processed and managed properly.

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Benefits:

1. Juggle different ratesets, commission fees, rebate agreements and fee arrangements
2. Set universal or unique ratesets across the board
3. Reduce operational costs
4. Increase efficacy of retrocession process

Reduce Risks:

1. Greater transparency of the retrocession process
2. Multiple levels of approval
3. Automatically calculate tax deductions and send out payments
4. Standardize the retrocession process across the board
5. Timely notifications and alerts

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Have more questions? Take a look at this interview with our Retrocession Product Manager!

• Can the retrocession tool handle multiple ratesets?

There are multiple ways that ratesets can be defined. For example, the user can choose between different periods, products and clients, allowing one EAM to have more than one rateset for all their needs.

• What levels of user management are there?

Users of our retrocession tool can be assigned to different roles which grants them different access levels. The level of access and specificities of each role can be defined and fully customized by the firm. Some standard levels of access are:

1. Technology Support Role: Raw data can be observed, but all PII information will be hidden.
2. Assistant Relationship Manager Role: Create ratesets and retrocession reports.
3. Market Leader: Able to approve ratesets and retro reports, but are unable to create them or modify information.

• How do I see all transactions within the retrocession tool?

Our retrocession tool makes viewing transactions easy.

1. The user can open the ‘Transactions’ tab and view all transactions within the UI. In this mode, the user can also use different search and filter functions.
2. Download the report in Excel format, and use Excel’s built-in tools to search and filter the report.

• What reports can the retrocession tool generate?

The user is able to generate retrocession reports, which will be sent directly to the EAM. This report includes summary information, such as the amount of retrocession by product, quarter, and customer information, as well as detailed information based on the transactions conducted.

• Can the retrocession tool manage automatic payments?

Yes! Once the retrocession report has been approved by the final approver, the report can be automatically paid off via an integration with Privé's APIs.

• Can the retrocession tool automatically manage tax deductions?

Of course! On the External Asset Manager (EAM) level, the user is able to manage automatic tax deductions and toggle between ‘on’ or ‘off’, as well as set multiple tax rates for different jurisdictions.

• What benefits does the retrocession tool have when compared to doing it the ‘traditional’ way?

There are many different reasons as to why using a professional retrocession tool is more beneficial than the ‘traditional’ way, but it all boils down to efficiency and transparency. With retrocession being a crucial part of any financial institution, these two points are of the utmost importance. With Privé's retrocession tool, the user can enjoy

1. Multiple levels of approval, to ensure that the final report is accurate
2. Automatic generation of user-friendly and informative retrocession reports
3. A reduction in the time taken for retrocession fee calculation
4. Amendments of existing transactions and creation of manual fees
5. Timely notifications of all necessary actions, such as rateset and report approval

• What approval levels does the retrocession tool have?

Approval levels are fully configurable by the user. However, there are usually two different approval levels for the ratesets, manual fees and reteocession reports individually, to reduce the likelihood of mistakes. A typical use case typically flows as follows:

1. The Assistant Relationship Manager creates a rateset and submits it for approval.
2. The next approver in the chain (the Relationship Manager), can either accept the rateset or reject it.
3. If they accept it, it will  move to the highest level approver, who will then decide whether to accept it again or to reject it. Should they reject it, the ratset would be directed back to Step 1.

• What kind of analytics does the retrocession tool provide?

Privé's retrocession tool provides a robust and diverse set of analytical tools for the user. In the retrocession report, the user is able to observe:

1. The total amount of retrocession for the defined time period
2. A comparison of the amount of retrocession with previous periods
3. A detailed summary, including the number of product types, retrocession fees and clients
4. A breakdown of the amount of retrocession for each client
5. A breakdown of the amount of retrocession for each product type
6. Excluded fees
7. Manually created fees

• Which product types does the retrocession tool support?            

Currently, the retrocession tool supports the following product types. However, more functionality can be added according to the user’s needs:

1. Brokerage
2. Time Deposits
3. Term Loans
4. Dual Currency Investments
5. Cash Forex
6. Funds / Managed Structures
7. FX Options
8. Stock Accumulators
9. Portfolio Management Fee
10. Revenue Share
11. Safekeeping Fees
12. Finder Fees

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About Privé Technologies:

‍Founded in 2011, Privé Technologies is a leading Software as a Service (SaaS) provider digitizing wealth management services of Banks, Asset Managers or Insurers. Our suite of products spans from client acquisition, digital onboarding and robo-advisory solutions, to portfolio construction, AI optimization, portfolio management (PMS), portfolio monitoring and reporting, to account aggregation, and more. Our lego block approach allows clients to choose and assemble unique journeys using Privé modules to suit their individual needs, such as fully digital Advisor-led wealth management journeys or end-to-end robo-advisory solutions. Privé Technologies services over 70 blue-chip clients across 16 markets globally and currently has offices in Hong Kong, Singapore, Taiwan, South Korea, Thailand, Germany and Austria.

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‍DISCLAIMER: This press release is for information purposes only. Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Privé does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Privé and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages. Privé assumes no obligation to update any information contained herein.