Fees & Commissions

Retrocession software automates the calculation, allocation, settlement and monitoring of remuneration within the fund and investment sector. Retrocessions are payments made, for example, by fund companies or product providers to banks, asset managers or other distribution partners. They represent a specific form of sales or portfolio commission.

In practice, it is often necessary to take into account different contractual agreements, calculation methods, fee scales, currencies and settlement periods. Added to this are regulatory requirements, documentation obligations and the reconciliation of incoming and outgoing payments.

Professional software for retrocessions automates these processes and significantly reduces the amount of manual work involved. With FundLine FC, abraxas offers a solution that supports the entire process – from data import through calculation and distribution to invoicing, payment processing and audit-proof documentation. This helps to reduce errors, shorten processing times and efficiently manage complex remuneration models.

Today, solutions for fee and commission management must be able to accommodate a wide variety of different fee and remuneration models. These include, amongst others, portfolio commissions (trailer fees), sales commissions, retrocessions, fund fees, management fees, custodian bank fees, administration fees, custody fees, listing fees and transaction fees.

Particularly challenging aspects include multi-tiered remuneration models, minimum fees, volume-based scales and the allocation of fees across multiple levels. International requirements, such as multi-currency settlements or different fee models in various markets, must also be taken into account.

FundLine FC offers over 16,000 calculation methods and enables the automated processing of complex fee and commission structures. Furthermore, it allows you to break down cascading holdings, identify multiple imports and carry out forecast and simulation calculations for future periods.

The management of fees and commissions is subject to stringent requirements regarding transparency, traceability and internal controls. Financial institutions must ensure that all calculations, changes, approvals and payments are documented and verifiable at all times.

FundLine FC meets these requirements through a complete audit trail, audit-proof logging of all changes and integrated approval processes based on the dual-control principle. In the disbursement process, the control can even be extended to a six-eyes principle.

In addition, the integrated task management system enables the operational control and tracking of process steps. This creates a transparent and traceable governance structure that supports financial institutions in complying with regulatory requirements such as MiFID II, as well as in internal and external audits.

Manually managing fees and commissions often involves a great deal of effort. Different data sources, contract structures, large volumes of data and numerous control steps increase the risk of errors, delays and overpayments.

Automation enables these processes to be standardised and made significantly more efficient. Calculations are carried out consistently based on defined rules, payments can be reconciled automatically, and all process steps remain traceable at all times.

FundLine FC has been specifically developed to process large volumes of data and automates the entire process, from data import through calculation and distribution to invoicing and documentation. Financial institutions thus benefit from greater efficiency, lower operational risks, improved processing quality and audit-compliant handling of their fee and commission processes. In addition, forecasting and simulation functions enable early planning of future income and fee streams.