Putting you in control with the cash management option
The cash account within a wrapper is fundamental to the smooth running of a client's product. Whilst it is possible to let the system manage sell downs for charges, this can create a large amount of trading if it only disinvests the amount required to pay a specific charge due. This increases the chance of trades queuing, which impacts the ability to ad hoc trade when desired.
Cash management solves this by creating additional trading flexibility for an account, minimising the number of disinvestment events required to pay for fees and charges. When there is insufficient cash to pay for charges, we will disinvest six times the value calculated, subject to a minimum amount of £60. This aims to provide enough cash to meet future charges without needing further sell down system trades on a frequent basis. Subsequent fees due will utilise the remaining cash balance first. With fewer system generated trades occurring, this increases the ability for ad hoc trades and other transactions to process in a timely way.
For more information and to learn how to enable this option on your clients’ accounts as their agreed fees and charges strategy, please download our guide below.