Making MACS Easier Flexible Account Opening Process

Transcription

1 Making MACS Easier Flexible Account Opening Process You now have more flexibility to present investment options to your clients using the client agreement. These options make it easier for you to close a MACS sale by eliminating the need to generate additional paperwork should selections or allocations be first made, or change, during your client meeting. This new flexibility takes advantage of the existing process you are used to using in the MAAP system. This document will discuss the stepby-step process to take advantage of these three options and highlight the changes made to the MAAP system and to the signature page of the client agreement. After completing the questionnaire online in MAAP, follow these steps: Step 1: Decide how to present investment options A new instructional screen has been added in MAAP to explain three different ways to you can use the investment selection screen to present investment options to your clients on the client agreement. Step 2: Make investment selections Proceed to the Investment Selection Screen: to determine how you want to present managers strategies on the client agreement. You may choose to: 1. Follow the current process of selecting specific managers and making final allocations which will be prepopulated on the signature page of the client agreement 2. Select several manager strategies as options for your clients to choose from on the client agreement 3. Skip the selection screen. Blank lines will display on the signature page of the client agreement so you can write in your client s manager selections after meeting with the client. Step 3: Decide what documents to print Proceed to the Print Required Documents Screen. The client agreement will now print separately from the Investment Policy Statement. The following changes have been made to the signature page of the client agreement to make it easier for you to open new accounts: Present Options: You have the ability to present up to twenty manager strategies as options for your client to choose from on the signature page. Blank lines are provided on every agreement for ability to write in your client s manager selections. The proxy voting waiver is now included on signature page (it was previously included within the body of the client agreement). Clients must initial this waiver to delegate proxy voting authority to the selected money managers. The Waiver of Receipt of Immediate Confirmation is now included on signature page; the separate confirm waiver form has been eliminated. Clients must initial this waiver to suppress receipt of daily trade confirmations. Step 4: Confirm the client s final selections If necessary, return to the investment selection screen to indicate the client s final investment selections and allocations that were made on the client agreement. Once you have printed the client agreement and indicated the client s final manager selections (allocations must equal 100%) continue to follow the existing process to setup and submit new accounts for approval.

2 Other Important Changes Questionnaire Status: To better reflect the enhancements, the IPS Printed status has been changed back to Pending Account Setup. This change is reflected throughout MAAP and will be evident on the questionnaire list all screen and on the MAAP progress bar. Grace Period for Existing MACS paperwork: Existing paperwork will be accepted by IMS operations for processing for 90 days after July 15, On or about October 15, 2002, only the new version of the client agreement will be accepted by IMS for processing. Please note that handwritten changes on existing paperwork will not be accepted. STEP 1: DECIDE HOW TO PRESENT INVESMENT OPTIONS TO YOUR CLIENT A new instructional screen has been included within MAAP to help explain the three different ways you can present the client agreement. The screen will appear after you complete the questionnaire but before the Investment Selection Screen. Simply choose from the three available options by clicking on the applicable shortcut button to move to the next step. Screen Sample: Choose an Option: Click the appropriate shortcut button to move onto the next step

3 STEP 2: SELECT INVESTMENTS The investment selection screen remains unchanged but you now have three ways to select and present managers strategies on the signature page of the client agreement. Option 1. Allocating 100% of Assets: Follow the current process of selecting specific managers and making final allocations (which will be pre-populated on the signature page of the client agreement). 3. Proceed to print agreement once selections made 1. Select specific managers 2. Allocate appropriate percentage to each manager selected. Option 2. Presenting Multiple Investment Options: Select up to twenty managers and proceed to print the client agreement. Do not make any allocations until after presenting the client agreement. 3. Proceed to print agreement once selections made 1. Select up to 20 manager strategies 2. Do not allocate until after agreement is printed and client has made final selections Option 3. Print Client Agreement without investment selections: Skip the selection screen and write in your client s final manager selections on blank lines provided on the signature page of the client agreement. For this option you will not use the selection screen until after your client has made final selections on the agreement.

4 STEP 3: DECIDE WHAT TO PRINT You may now print the client agreement separately from the Investment Policy Statement since the client s final selections may not be determined at the time the client agreement is generated. You can select any combination of proposal sections to print but the client agreement must be printed in order to setup the account. Additionally, the name of the screen has been changed to Print Required Documents. The Proposal can be instrumental in the consulting process by assisting you in educating your client and presenting your specific investment proposals to them. The Investment Policy Statement (IPS) serves as documentation of your client s decisions and their strategy for achieving goals. Once final investment selections have been made, you should print the IPS and send it to your client for their records. You must continue to allocate 100% of the client s assets in order to print the IPS. The account opening documents include the Client Agreement, Summary of Questionnaire Responses, Administration Setup Form and ERISA Guidelines, when applicable (approximately 13 pages). Document descriptions have been modified Screen name changed to Print Required Documents Client Agreement and IPS can now be printed separately Account Opening Documents* include: Client Agreement Summary of Questionnaire Responses Administration Setup Form ERISA Guidelines, when applicable *Will print approximately 13 pages

5 REVISED CLIENT AGREEMENT: The following four pages explain the specific details of each part of the signature page for each of the three different options available to you. Note: These are intended as examples and subject to change. Any managers used in these examples are intended for illustrative purposes only. SIGNATURE PAGE - OPTION 1: SELECTIONS & ALLOCATIONS MADE IN ADVANCE OF CLIENT MEETING Client Contract For: John Doe Title: Mr. John Doe Date: April 3, 2002 Managed Assets Consulting Services Investment Summary Investment Objective: Growth Net Worth: $4,500,000 Time Horizon: 20 Years Risk Tolerance: Moderate Proposed Investment Asset Class Name Proposed Allocation (%) Selected Allocation (%) US LARGE CAP EQ 30% 10% US SMALL/MID CAP EQ 10% 30% NON-US EQ 0% 10% MONEY MARKET 15% 5% US INTERMEDIATE FI 45% 45% 100% 100% Investment Options/Manager # Risk Category Allocation(%) Account Number Rittenhouse Large Cap Grwth / MAC076 Moderate 10% Seneca Mid Cap Grwth / MAC0F3 Moderately Conservative 30% Lazard Int l Value / MAC044 Conservative 10% Target Money Market Conservative 5% CSAM Int l Garp / MAC0E2 Moderate 45% Security Restrictions GE General Electric X Xerox BLDP Ballard Power Sys IBM Intl Bus Machine REGN Regeneron Phar NOK Nokia Corp The questionnaire must be completed via MAAP to generate MACS documentation. A profile of the client based on the client s responses will print on the agreement If the client has selected their allocation, investment options and allocated 100% to those investment options, the proposed and selected allocations will print. The client may indicate their ultimate selections by writing the appropriate account number under the column that corresponds with the investment selection. If the client wishes to write in additional investment options, they may do so on the blank lines that are provided. All columns MUST be completed for the agreement to be accepted. Please note: The Investment Selections screen in MAAP must be updated to reflect the client s final investment selections and allocation prior to proceeding to account set up. If the client has requested security restrictions on their MACS investment, they must indicate these restrictions via the MAAP System.

6 SIGNATURE PAGE - OPTION 2: MULTIPLE MANAGER STRATEGY OPTIONS PRESETNED Client Contract For: John Doe Title: Mr. John Doe Date: April 3, 2002 Managed Assets Consulting Services Investment Summary Investment Objective:Growth Net Worth: $4,500,000 Time Horizon: 20 Years Risk Tolerance: Moderate Proposed Investment Asset Class Name Proposed Allocation (%) US LARGE CAP EQ 30% US SMALL/MID CAP EQ 10% NON-US EQ 0% MONEY MARKET 15% US INTERMEDIATE FI 45% 100% Investment Options Investment Options/Manager # Risk Category Allocation (%) Account Number Rittenhouse Large Cap Grwth / MAC076 Moderate Groupama Large Cap Grwth / MACXXX Aggressive Davis Large Cap Value / MACXXX Moderate Seneca Mid Cap Grwth / MAC0F3 Moderately Conservative Kayne Anderson/Small Cap Core / MAC0H3 Moderately Aggressive Lazard Int l Value / MAC044 Moderate CSAM Int l Garp / MAC0E2 Moderate Alligance Fixed / MAC0E2 Moderate Target Money Market / MAC0E2 Moderate Security Restrictions GE General Electric X Xerox BLDP Ballard Power Sys IBM Intl Bus Machine REGN Regeneron Phar NOK Nokia Corp The questionnaire must be completed via MAAP to generate MACS documentation. A profile of the client based on the client s responses will print on the agreement If the client would like to print a client agreement that shows several investment options prior to the client s selection of an allocation and investment options, only the proposed allocation will print. The client may indicate their ultimate selections by writing the appropriate account number and allocation % under the appropriate corresponding columns. If the client wishes to write in additional investment options, they may do so on the blank lines that are provided. All columns MUST be completed for the agreement to be accepted. Please note: The Investment Selections screen in MAAP must be updated to reflect the client s final investment selections and allocation prior to proceeding to account set up. If the client has requested security restrictions on their MACS investment, they must indicate these restrictions via the MAAP System.

7 SIGNATURE PAGE - OPTION 3: NO SELECTIONS MADE IN ADVANCE OF CLIENT MEETING (blank lines) Client Contract For: John Doe Title: Mr. John Doe Date: April 3, 2002 Managed Asset Consulting Services Prudential Investments Investment Summary Investment Objective:Growth Net Worth: $4,500,000 Time Horizon: 20 Years Risk Tolerance: Moderate Proposed Investment Asset Class Name Proposed Allocation (%) US LARGE CAP EQ 30% US SMALL/MID CAP EQ 10% NON-US EQ 0% MONEY MARKET 15% US INTERMEDIATE FI 45% 100% Investment Options Investment Options/Manager # Risk Category Allocation(%) Account Number Security Restrictions GE General Electric X Xerox BLDP Ballard Power Sys IBM Intl Bus Machine REGN Regeneron Phar NOK Nokia Corp GE General Electric X Xerox BLDP Ballard Power Sys The questionnaire must be completed via MAAP to generate MACS documentation. A summary of the client s responses will print on the agreement If the client would like to print a client agreement that does not show the client s selection of an allocation and investment options, only the proposed allocation will print. The client may indicate their ultimate selections by writing in the required information under the appropriate columns on the blank lines that are provided. All columns MUST be completed for the agreement to be accepted. This includes indicating the 1) managers full name, 2) MACS manager number, 3) manager s risk category, 4) allocation and 5) account number. Please note: The Investment Selections screen in MAAP must be updated to reflect the client s final investment selections and allocation prior to proceeding to account set up. If the client has requested security restrictions on their MACS investment, they must indicate these restrictions via the MAAP System.

8 Waivers OTHER SECTIONS OF SIGNATURE PAGE APPLICABLE FOR ALL OPTIONS The Client must initial if they wish to delegate the right to vote proxies to the Manager and authorize PSI to send related materials to such Delegate. Client accepts the proxy voting services described in Section 6 (initials) Client accepts the daily confirmation waiver described in Section 7 (initials) Fees Each Equity, Balanced and Convertible Securities Investment Strategy [ $Value of Assets $0-$500,000 Next $500,000 Next $1,500,000 Next $2,500,000 Over $5,000,000 Annualized Fee 3.00% 2.50% 2.00% 1.50% 1.00% Each Fixed Income Strategy $Value of Assets $0-$500,000 Next $500,000 Next $1,000,000 Next $3,000,000 Next $5,000,000 Over 10,000,000 Annualized Fee 1.25% 1.00% 0.85% 0.75% 0.50% 0.375% Fund Options Annualized Fee 2.00% of $ Value of Fund Assets Less(-) 0.75%* of $ Value of Fund Assets Equals(=) 1.25% of $ Value of Fund Assets *This credit is provided to offset certain compensation received by PSI and its affiliates from the Funds or their affiliates for providing various services to the Funds. Client acknowledges the following: (1) Client has received a Manager Profile for each Manager selected by Client; (2) Client is free to make investment selections that do or do not align with Client s scored risk tolerance derived from the Questionnaire Responses; (3) Selection of a strategy, Fund or asset allocation that does not align with Client s scored risk tolerance may or may not be appropriate and PSI has advised Client to consider investment selections in the context of Client s overall allocation of assets inside and outside this program; (4) Selection of a strategy, Fund or asset allocation that does not align with Client s scored risk tolerance may impact Client s ability to achieve Client s stated objectives; (5) Client is free to re-respond to the Questionnaire or discuss the potential impact of non-aligned selections with Client s Financial Advisor at any time; and (6) Client understands that PSI and its affiliates may earn higher fees if Client selects separate account strategies rather than Funds. By signing this Agreement, Client agrees to be bound to the terms outlined in this Agreement and instructs Prudential Securities Inc. to effect the investment selections listed above. Client understands and agrees to the pre-dispute arbitration clause found on pages 5-6, Section 10 titled Governing Law; Arbitration. Client Signature Date Client Signature Date Printed Name Title (if appropriate) Printed Name Title (if appropriate) If signatory is the named fiduciary of an employee benefit plan, please specify the capacity (i.e., Trustee, Administrator) Prudential Securities Incorporated The Client must initial here to instruct PSI (a) not to send daily confirmations of securities transactions effected in Client s Account to Client. Client will receive trade confirmations quarterly. The Standard Blended Rates are shown. The Financial Professional has three options to charge the fee to the client: 1.Standard Blended Rate. The client will be billed a blended rate according to the appropriate asset levels 2.Discount % off of the Standard Blended Rate. The client will be billed a discounted blended rate according to the appropriate asset levels. (i.e., 10% discount off of the Standard Blended Rate) 3.Flat Rate. All assets will be billed at the negotiated Flat Rate. Note: If discounting below the allowable discount, grid reduction may apply. See the Managed Money Website When the MAAP system reflects the client s ultimate selections, proceed to account set up and submit the proposal for Branch Manager Approval. Once the proposal is approved by the Branch Manager, via ETS, please forward the fully executed Client Agreement and a copy of the Summary of MACS Questionnaire Responses to the following address: Microfilm Imaging Attn: MACS Processing One New York Plaza, Level A New York, NY

9 STEP 4: CONFIRM CLIENT S FINAL INVESTMENT SELECTIONS The new flexibility to present options and/or write in selections on the agreement eliminates the need to generate additional paperwork if a client changes a selection or allocation during your client meeting. Simply return to the select investment screen to indicate the client s final selections and allocations. Make sure the total allocations equal 100% and selections input into MAAP match the selections indicated on the client agreement. Return to Select Investments screen: Select questionnaire/list all, then highlight appropriate questionnaire Click Select Investments on the Questionnaire menu which takes you to the Select Investments Screen. Highlight Questionnaire Highlight select investments from questionnaire menu Make Final Selections & Allocations: In Box C, allocate percentages to each manager selected by the client as indicated on the client agreement. If the client made selections that have not previously been selected, select the manager in Box B and allocate the appropriate percentage in Box C. Submit Account for Manager Approval: Once the allocations total 100%, proceed to the account setup screen. You may either click the Account Setup button on the upper right hand corner or click on the Setup Account link on the progress bar to proceed. If necessary, you can always reprint a new agreement or other proposal materials by clicking the Next button in the upper right hand corner or clicking on the Print Req. Documents link on the MAAP Progress Bar atop the screen. Proceed to account setup screen Select managers not previously presented, if applicable Allocate appropriate percentage to each manager selected.