Service > Advisory Services > The MAP Program

The MAP Program is VSR Advisory Services' in-house platform for clients whose accounts will be managed directly by their Reps. We have developed a program that provides a high level of customer service, permits Reps great flexibility, and is affordable for Reps and their clients.

One of the keys to a successful program is a cutting edge software system that can track thousands of client accounts, create quality performance reports, and provide useful information to Reps and clients. We have the system: the Advent Axys System. Through the Axys System, VSR Advisory Services provides you with the high-quality, detailed quarterly position and performance reports that you and your clients expect. In addition, performance reports are updated monthly and are available on the internet. We have received very positive comments from the Reps and clients now using the system who have praised the quality, layout, and promptness of the Axys System reports.

 Key Features

• Turnkey Program: MAP is a turnkey program for Reps who want to actively manage their clients' accounts. The Rep implements the investment decisions (either on a discretionary or non-discretionary basis) through VSR's Trade Desk. VSR Advisory Services will provide all required contract forms, maintain all required records, make appropriate regulatory filings, debit the fees, notify clients of the fees, and make the required annual offer of the Form ADV.
• Brokerage Accounts and Monthly Statements: Brokerage accounts will be maintained at the clearing firm. Whether First Clearing or Pershing is chosen, Reps will work with the same experienced trade desk personnel as they do for retail VSR brokerage business. 
• Flexible Fees: Reps may set a different management fee schedule for each client, with breakpoints as deemed appropriate. Out of the management fee, VSR Advisory Services will receive an administrative fee to cover the costs of preparing the account reports, reconciling account statements, calculating the fees, and notifying clients of the fee with a mailed statement.

The administrative fee is deducted "off the top" of the management fee paid by the client, before calculating the payout to the Rep. For example, if the management fee paid by the clien on a $250,000 account is calculated at 1.5% annually, the quarterly fee would be $937.50. Out of the balance of $843.75, the Rep would be paid $759.37 (assuming a 90% payout level).

Fees will be automatically debited from the accounts quarterly in advance, with the first quarter being prorated and paid at the next calendar billing cycle. It is the Reps' responsibility to have sufficient cash in the account to debit fees. Accounts may be linked together to debit fees, and accounts in the same household are combined to meet the administrative fee breakpoints. The administrative fee will be assessed against all assets held in the account or otherwise designated as managed assets, including cash and money market balances, but not including limited partnerships, non-traded REITs and Note Offerings.

Please be sure to take the administrative fee into account when setting the client's management fee, since the administrative fee will be deducted out of the management fee paid by the clients. Following is the administrative fee schedule:

In addition to the management fee, clients will be charged their platform's usual ticket charges for all transactions in the account.

• >> see First Clearing platform information 
• >> see Pershing platform information

• Account Activation Fee: Reps may charge an Account Activation Fee, if desired, to help cover the administrative costs of opening an account. This fee is limited to a maximum of .5% of the initial deposit or transfer amount. Account Activation Fees are typically paid to Reps the month the assets reach the account.
• Account Assets: Investments made in MAP accounts primarily will be no-load and load-waived funds and general securities where the commission is reduced to $0 (plus the usual ticket charge). Existing investments may be transferred into the MAP account, but will be subject to VSR Advisory Services' Fee Deferral Policy. In general, non-MAP assets (such as REITs and Notes) may be shown on the appraisal reports, but will not be shown with any valuation and will not be included in the calculation of account performance.

Many fund families that offer load-waived or no-load funds can be purchased in MAP accounts. Request the Load-Waived Fund Families sheet for the current list of all load-waived fund families available inside The MAP Program. As an additional convenience, prospectuses are automatically sent to clients on purchases.

Clients may not purchase "B" or "C" shares, or any other product sold by prospectus with a commission (such as limited partnerships) in the managed account. However, previously purchased "B" and "C" shares, and other investments previously sold with a commission, may be transferred in to the account, but will be subject to VSR Advisory Services' Fee Deferral Policy.

• Portfolio Management Resource: VSR Advisory Services encourages Reps to use an independent third-party source such as Envision, InfoMAX, CDA InvestmentView, Morningstar Principia, etc., as a resource upon which to make security selections for clients.
• Fee Deferrals: Reps may not charge an asset management fee on assets that they recently sold a client for a commission. VSR Advisory Services' Fee Deferral Policy is as noted below:

It is the Rep's responsibility to notify VSR Advisory Services when assets become eligible for fee billing.

Other Issues: Reps may open discretionary accounts only with Home Office approval. Options may be used in the program, but primarily for accounts above $150,000.