Wrap Account definition
Examples of Wrap Account in a sentence
Confluence will generally place trades for clients in Wrap Account and UMA programs with the Sponsor of the program.
Clients in a Wrap Account or with a discretionary account in certain UMA programs are generally charged a bundled fee or fees by the Financial Institution sponsoring the program (“Sponsor”), typically based on a percentage of the market value of the assets in the Wrap Account or UMA.
In a Wrap Account fee type, Client pays one Account fee that covers investment advisory, administrative and trading services.
Subject to applicable laws and regulations, Confluence retains full authority to negotiate the fees it charges to its clients for discretionary portfolio management and investment advisory services, including “single and dual contract” agreements with Financial Institutions to provide such services to the clients of such Financial Institutions as part of a UMA or Wrap Account arrangement, and to registered investment companies.
Subject to applicable laws and regulations, Confluence retains full authority to negotiate the fees it charges to its clients for discretionary portfolio management and investment advisory services, including “single- and dual-contract” agreements with Financial Institutions to provide such services to the clients of such Financial Institutions as part of a UMA or Wrap Account arrangement, and to registered investment companies.
In the Wrap Account format, if the Advisory Representative pays the transaction charges rather than Manager, the Advisory Representative will retain a higher portion of the total account fee paid by the Client because the administrative fee paid to Manager will be lower than if Manager directly paid the transaction charges.
If Account is managed on a discretionary basis and is offered using the Wrap Account format (as described in Section 6 below), then Client will have the option to request suppression of trade-by-trade confirmations.
In the Wrap Account format, Client’s Transaction Charges may be paid by Manager or Advisory Representative.
In a Non- Wrap Account fee type, Client pays an Account fee that covers investment advisory and administrative services and pays additional fees for each trade (“Transaction Charges”).
Clients incur certain charges imposed by custodians, brokers, third-party investment, and other third parties, such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials, exchange fees, SEC fees, transfer taxes, wire transfer and electronic fund fees, and other fees (including Wrap Account fees) and taxes on brokerage accounts and securities transactions.