Regal Operations Newsletter – October 2019

The service team at Regal Holdings has decided to use this month’s Operations Newsletter as an update for all of the important upcoming dates this fall!

Regal Holdings is always looking to improve the technologies and processes in order to provide the highest service to our advisors. This fall will bring many exciting changes to our technologies as well as some important dates regarding licensing and client documents. The dates and announcements will be continually added as Field Updates on www.RegalRIA.net and www.RegulusAdvisors.com, as well as regular informative emails sent to Advisors and Assistants.


Upcoming Important Dates

October 1stCIAA Fee Schedules dated October 1st or later will need to be completed for all asset levels. We will also no longer accept the “greater than” (>) symbol on fee schedules starting with paperwork dated Oct 1st or later.

October 15thSleeve Trading & Reporting will officially be implemented allowing accounts to have multiple strategies held under one account number. Thus, simplifying the process for a more diverse portfolio.

ProPlan and ProPlan Assist will allow advisors to use Riskalyze and MoneyGuidePro®. These proposal systems and more robust planning options will allow advisors to be able to provide a complete financial plan that is integrated with a risk analysis report showing how much risk corresponds to the recommendation. Click on the link below to view the replay of the last webinar introducing ProPlan and ProPlan Assist.

View Webinar Replay ➞

November 18thStarting November 18th work items for any client account that does not contain paperwork dated within the past 3 years will be sent back to the rep. Due to FINRA and Regulus/Regal policies, all client paperwork over 3 years old will require an update. Look for a full field announcement in October with additional details.

November 11th — December 1stThis will be the renewal period for 2020 state licensing. There will be a full field announcement in late October / early November as well as individual messages to reps asking them to confirm their registrations for 2020.

February 29th 2020: Deadline by which all client paperwork in COMET must be up to date. This includes all clients on the RIA and BD side. Up to date is defined as having a new account form dated within 3 years or a documented letter to the client asking for updated information uploaded to COMET.


eSignature Preparation

In order to effectively prepare for the implementation of eSignature, it is important that Advisors and Assistants become resourceful in utilizing the Starting Point tool in COMET. Over the next weeks, the Regal Holdings team will be providing additional training resources to our affiliates to make this enhancement as accommodating, useful, and seamless as possible.

Training for the preparation of eSignature will include:

  • Weekly email campaigns
  • Training webinars
  • Personal training correspondences
  • Updated training material to the Regal/Regulus websites

COMET Updates

We have found that many of the work items that have missing or distorted forms often have other issues that require additional attention that might have been missed before the work item was submitted. To correct this, in the coming weeks Regal Holdings will be adjusting the format and process in which work items are corrected upon submission to COMET. Work items with the following insufficiencies will be sent back to the advisor as an ‘Incomplete Work Item’ rather than a NIGO:

  • Missing document(s)
  • Document(s) image quality is not in accordance with Regal Holdings standards

These work items may not always require client interaction as the work item is considered ‘incomplete’ rather than incorrect documents. These corrections should always include the advisor reviewing the documents as the message to the advisor will read as;

“Please be aware this is an insufficient work item submission. As your work item was not sufficiently complete to make it into principal review, additional corrections as listed below are required. Before resubmitting please review the work item for completion and quality, including making sure all documents are included in the work item.”

The goal of this adjustment is to ensure all documents are correctly uploaded to the work item before it gets to Processing, with the ultimate goal of reducing a work item being NIGO multiple times.


Upcoming Technology Training

Each month Regal hosts a technology webinar that covers basic navigation and use of Tamarac, COMET, custodial websites and Xtiva. We encourage all new advisors and/or assistants to attend, as well as those that need a quick refresher.

The next webinar is Wednesday, October 9th 2019, at 1:30 PM – 3:30PM EDT.

Register Now ➞

If you have any questions, please contact the client services team at 800-357-4757 or operations@regalfin.com.

Upcoming COMET Enhancements

Upcoming COMET Enhancements

Upon login this week Friday (10/11/19), all COMET users will see various changes to COMET in preparation for the upcoming eSignature implementation. A list of the updates are listed below with a short description of each item in an effort to set expectations.

  • Custodian codes available for Starting Point paperwork bundles: when utilizing Starting Point Advisors and Assistants will now be able to select the appropriate custodian code for the documents, helping to reduce NIGOs for incorrect codes.
  • Ability to copy client information to multiple documents: users will now see light blue arrows on forms after creating a work item using Starting Point. These arrows will allow the user to copy the client information from one form to another, therefore eliminating repetitive data entry.

The Regal/Regulus team will also be updating the review of new business slightly, in order to help Advisors prepare for eSignature as well as to make the review and processing of the new business work items more efficient. The new process will include the designation of ‘Incomplete Work Items’ before the principal review step of processing new business.

Any work items that fall into any of the categories below will be deemed an ‘Incomplete Work Item’ and be send back to the Advisor for correcting.

  • Missing documents or the Government ID in the work item
  • No documents attached to the work item
  • Inconsistent document image quality

These ‘Incomplete Work Items’ are different from NIGOs as they may not always require client interaction, the cause is due to incomplete documents not necessarily incorrect information. If a work item is categorized as such, it will not be sent through for principal review until it the issues are corrected. The Advisor office will receive an automated email from COMET stating that the work item is incomplete along with details on how to correct the work item. This will prepare Advisors for eSignature as there will not be an option to submit an incomplete work item through the eSignature platform.

A best practice to avoid an ‘Incomplete Work Item’ is to utilize the Starting Point tool inside COMET. This tool will allow you to create a client folder/subfolder, populate documents, create paperwork bundles and create the work item. Starting Point will create a document placeholder for each document necessary (with the exception of the Government ID and Vendor statement for transfers) as a double check that all required documents are attached to the work item.

To learn more about the Starting Point tool inside COMET please attend our training webinar as part of the Monthly Technology Training on Wednesday (10/9/19) starting at 1:30pm EST.

Register for the Training Webinar

The Start Point training webinar will include systematic instruction on how to utilize this tool when creating a work item. Attendees will submit a work item from start to finish, implementing the Starting Point tool in order to display the process and its capabilities. By attending the webinar, Advisors will not only be able to get information on best practices but to also ask questions and gain a better understanding of efficiencies with this tool.

The Regal/Regulus team is excited to get all offices up to speed with the upcoming changes and look forward to improving overall productivity! We will continue to keep you updated as changes go into effect.

Thank you for your business and affiliation!

Quarterly Billing Reminder

This is the final reminder of the upcoming advisory fee billing for the 4th quarter 2019, October 1st – December 31st. Fees for the client accounts we bill directly on our advisory custodians will be processed between October 2 and October 7 (inclusive) with payroll transactions posting in Xtiva on October 9. You will see the direct deposit activity to your bank account on October 11. Any outstanding debit balances will be collected against this deposit amount.

Friendly reminders related to the billing:

  • Please be sure all sell orders have been placed on or before Tuesday, October 1st by market close.
  • Please note that we are now tracking those accounts where there are insufficient funds to cover the fees. In the future, should there be chronic shortfalls resulting in the duplication of efforts in fee collection, we will begin to assess penalty fees in accordance with the economics package.

Please let us know if there are any other questions related to this reminder notice by emailing billing@regalfin.com.

Compliance Checkup

Hello and welcome to the Compliance Checkup for September. This month we will be reviewing the CIAA fee schedule, client account information requirements and the Annual Compliance Meeting (ACM).


Important Compliance Dates

September 30th : September 30th is the last day to complete your Annual Compliance Meeting (ACM) training. Additional info below.

October 1st :

  • CIAA Fee Schedules dated October 1st or later will need to be completed for all asset levels. We will also no longer accept the “greater than” (>) symbol on fee schedules starting with paperwork dated Oct 1st or later.(see below for additional info)
  • NIGO Changes: Starting October 1st work items that do not contain proper documents will be sent back to the rep office before principal review. There will be a full field announcement on October NIGO changes later this month.

November 1st: Starting November 1st work items for any client account that does not contain paperwork dated within the past 3 years will be sent back to the rep. Due to FINRA and Regal policies, all client paperwork over 3 years old will require an update. Look for a full field announcement in October with additional details.

November 1st – December 1st : This will be the renewal period for 2020 state licensing. There will be a full field announcement in late October / early November as well as individual messages to reps asking them to confirm their registrations for 2020.

February 29th 2020: Deadline by which all client account info must be up to date. This includes all clients on the RIA and BD side. Up to date is defined as having a new account form dated within 3 years or a documented letter to the client asking for updated information. There are additional details below and there will be a full field announcementin October.


CIAA Fee Schedule

All Asset Levels: Starting with paperwork dated October 1st or later we will be Nigoing CIAA fee schedules that do not contain a fee for all asset levels. Up until this point we have only required a fee for asset levels up to 1 million dollars.

The Greater Than Symbol (>): We will also no longer be allowing reps to use the greater than ( > ) symbol. This has caused confusion based on which way to properly face the symbol as well as confusion of the (>) symbol as the number 7 due to poor penmanship. Please be aware of these changes and adjust your procedures with clients accordingly. Below are 2 examples of acceptable fee schedules. Please note the second example includes account balance terminology we will no longer accept in the bottom 3 boxes.

The options for how to list all asset levels are below:


Client Account Information

Regal and Regulus both maintain a policy requiring client account information to be updated or confirmed at least once every three years. If you have client accounts that are over 3 years old, please plan on either updating the client folder with new paperwork or sending out a letter to your clients to confirm their current information. Regal will provide lists to reps detailing which client accounts are past the 3 year horizon and a form letter to send to clients if they will not be updated within the next 6 months. Once the ROSE conversion is complete and historical data is into COMET, we will be sending out field announcements as well as individual notifications to reps involved. The table below is a summary for the client account requirements as well as some best practices moving forward. Starting November 1st if the client account information is not up to date, work items for that account will be sent back to the rep unless they contain updated information. If you are meeting with clients please review what is on file before the meeting and obtain updated documents if necessary.

Information / NAF on file is greater than 3 years old.

Letter Option: For clients who will not be in the office before February 2020, you may send a form letter provided by Regal. The rep will be responsible for inserting the current client Info, uploading a copy to COMET and mailing it out to the client. Any returned letters need to go into COMET for review and archiving.

New NAF Option: During the clients annual review, please get an updated NAF. This only applies to clients who you will meet with prior to February 2020.

Information / NAF is less than 3 years old Nothing required, account is up to date. As a best practice please review client information prior to any meetings to determine if documents need to be updated.

 


Annual Compliance Meeting

The annual compliance meeting is underway, you will have completed or have assigned to you training modules on the Quest CE and Knowbe4 platform. The final day to complete your training is September 30th 2019, please reach out to Rose Lee (rlee@regalfin.com) with any questions.


 

If you have any questions please reach out to Ben Westin (bwestin@regalfin.com) or Abigail Morgan (amorgan@regalfin.com).

Thank you for everything you do!

Quarterly Billing Reminder

This is the second reminder of the upcoming advisory fee billing for the 4th quarter 2019, October 1st – December 31st. Fees for the client accounts we bill directly on our advisory custodians will be processed between October 2 and October 7 (inclusive) with payroll transactions posting in Xtiva on October 9. You will see the direct deposit activity to your bank account on October 11. Any outstanding debit balances will be collected against this deposit amount.

Friendly reminders related to the billing:

  • Please be sure all sell orders have been placed by close of market on Tuesday, October 1st by market close.
  • Please note that we are now tracking those accounts where there are insufficient funds to cover the fees. In the future, should there be chronic shortfalls resulting in the duplication of efforts in fee collection, we will begin to assess penalty fees in accordance with the economics package.

Please let us know if there are any other questions related to this reminder notice by emailing billing@regalfin.com.

Pre-Billing Dashboard

In preparation of the 2019 Q4 Advisory Billing, the Regal Team is continuing the Pre-billing best practice that was introduced for Q3. To provide for greater accuracy some additional “checks and balances” have been put in place, Regal implemented a pre-billing audit process to assist in ensuring the most accurate possible fee billing process. In addition to the internal audits that we now routinely perform, Regal is generating a Pre-billing Dashboard for each advisor to review. This Dashboard shows all your advisory client accounts that Regal bills directly on our advisory custodians.

The Pre-Billing Dashboard includes:

  • Client Account Name
  • Account Number
  • Upcoming Billing Date
  • Current AUM
  • Payment Account (for accounts billed from a separate account)
  • Billing group
  • Billing definitions (Fee Schedule for the account)
  • Amount the account was responsible for in the Q2 2019 billing (includes the aggregate amount billed from other accounts from one payment account)
  • Amount the account was billed in Q3 2019 (To provide an estimate for the upcoming billing, the actual billing will use the actual quarter-end market value)
    • Tamarac generated value based on billing definition, does not include manual adjustments or monthly proration
  • Current cash available for fees
  • Account Investment Strategy
  • Money Manager on the account
  • Custodian
  • Fee Billing Rep Code (to show any split business)

Please pay close attention to:

  • Client billing definitions
  • Payment account details
  • Current cash available for fees — if there will not be enough cash available, please be sure sell orders are placed in advance of the quarterly billing

To ensure all corrections are addressed before the Q4 2019 billing occurs, please respond with any questions or concerns with the Pre-billing Dashboard by Tuesday, September 25th. All responses can be directed to Alex Hossink or Mark Wabeke at billing@regalfin.com. If there are any changes to the fee schedule, please complete a new CIAA and submit as a NA-Advisory work item in COMET.

Your personal Pre-Billing Dashboard will be distributed Tuesday, September 17.

Our intention is to help you provide the best client experience by identifying any billing concerns before client accounts are billed.

Quarterly Billing Reminder

This is a reminder of the upcoming advisory fee billing for the 4th quarter 2019, October 1st – December 31st. Fees for the client accounts we bill directly on our advisory custodians will be processed between October 1 and October 7 (inclusive) with payroll transactions posting in Xtiva on October 9. You will see the direct deposit activity to your bank account on October 11. Any outstanding debit balances will be collected against this deposit amount. Otherwise you will need to immediately provide a check or credit card to settle your existing balances.

A few friendly reminders related to the billing:

  • Please be sure that all of your sell orders have been placed by close of market on Tuesday, October 1st by market close.
  • Please note that we are now tracking those accounts where there are insufficient funds to cover the fees. In the future, should there be chronic shortfalls resulting in the duplication of efforts in fee collection, we will begin to assess penalty fees in accordance with the economics package.
  • If you are aware that a client has moved please ensure that the client’s address has been updated as accounts restricted for returned mail will also fail to bill.
  • Third party managed accounts will pay out as fees and fee accounting data from the third party are received by Regal, per our normal weekly payroll cycle.

If there are any special circumstances for this fee billing please be sure to notify Alex Hossink (ahossink@regalfin.com) or Mark Wabeke (mwabeke@regalfin.com) prior to September 26th.

DocuSign Activation Email

In the recent ‘Update from the CEO’ email, it was announced that the Regal team has been hard at work to bring eSignature capabilities to the Advisor field. The Regal team is currently testing the capabilities and processes in a non-live site of COMET. During this set up and testing process, Regal and Regulus COMET users were set up with DocuSign accounts prematurely and in error. This resulted in many users receiving an activation email from DocuSign, example shown below:

If you received the below email, please disregard and delete. There is no action needed from your end at this time. The Regal team will notify and provide further information as we are ready to launch eSignature and are setting up users. The Regal team is excited to share eSignature later this fall after the final configurations and beta-testing processes are complete.

Temporary COMET Outage

This weekend (September 6-8, 2019) DocuPace, the team behind COMET, will be completing a Data Center move between Las Vegas and Reno. This will result in the COMET system being unavailable Friday, September 6th starting at 6PM PT through Sunday, September 8th at 10pm PT. This Data Center move will not affect the functionality of COMET but will cause a temporary outage for all users during this time period. The Data Center move is part of DocuPace’s increased disaster recovery safety initiative.

Upon completion of the Data Center move the COMET platform will be fully accessible and functional. As a reminder, if you are meeting with any clients over the weekend please plan to have all required documents saved and/or printed off before Friday at 6pm PT as you will not have access to the forms library inside COMET within this timeframe.