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WO2001061593A1 - Traitement de compte separe - Google Patents

Traitement de compte separe Download PDF

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Publication number
WO2001061593A1
WO2001061593A1 PCT/US2001/003798 US0103798W WO0161593A1 WO 2001061593 A1 WO2001061593 A1 WO 2001061593A1 US 0103798 W US0103798 W US 0103798W WO 0161593 A1 WO0161593 A1 WO 0161593A1
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WO
WIPO (PCT)
Prior art keywords
client
account
recited
manager
providing
Prior art date
Application number
PCT/US2001/003798
Other languages
English (en)
Inventor
Kevin Freeman
Erik Davidson
Original Assignee
Separate Account Solutions
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Separate Account Solutions filed Critical Separate Account Solutions
Priority to AU2001238041A priority Critical patent/AU2001238041A1/en
Publication of WO2001061593A1 publication Critical patent/WO2001061593A1/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/02—Banking, e.g. interest calculation or account maintenance

Definitions

  • the present invention relates to providing financial services on-line. More particularly, the invention provides a method and apparatus for providing on-line managed accounts, such as separate accounts.
  • separate accounts also called wrap accounts
  • Separate accounts are accounts that are managed by a financial consultant, where a client provides funds to a financial consultant who invests the funds on behalf of the client.
  • Separate accounts are accounts with professional investment management of a unique portfolio of securities. Since separate accounts are unique and individual for each client, they are not like mutual funds where each buyer of a mutual fund has part of a common pool of securities.
  • FIG. 1 is a flow chart of how a separate account may be processed in the prior art.
  • a client may first select a consultant/broker (step 104).
  • the consultant/broker may interview the client, which generally may be done by asking the client questions from a questionnaire.
  • the consultant/broker may send the questionnaire to an offsite service, which forms a personalized investment policy statement (IPS) for the client (step 112).
  • IPS personalized investment policy statement
  • Sending the questionnaire offsite creates a time delay in forming the investment policy statement, and requires that the client returns at a later time to continue the process and makes it difficult to change the IPS, if the client is not satisfied with the IPS.
  • FIG. 2 is an illustration of how a client 200 may select either a first consultant/broker 204 or a second consultant broker 208.
  • the selection of the first consultant broker 204 may limit the managers available to the client 200 to managers 212 and 213.
  • the selection of the second cons ⁇ ltant/broker 208 may limit the managers available to the client 200 to managers 214 and 215.
  • the client may choose one of the money managers (step 118).
  • the client may provide funds to the consultant/broker to open a brokerage account, which gives the selected money manager the authority to manage the account (step 120).
  • the selected money manager may invest the funds in the brokerage account according to the client's IPS (step 124).
  • the money manager may provide a periodic report about the investments (step 128).
  • the client must visit the consultant/broker when the consultant/broker is available, which may be during regular business hours.
  • the client may need to make more than one visit before being able to open a separate account. It is difficult to change the investment policy statement.
  • the client may not be provided a wide choice of money managers, since the selection of a consultant/broker may narrow the choice of money managers to only money managers associated with the consultant/broker.
  • the client may be tied to a more traditional brokerage account of the consultant/broker instead of being able to use the less expensive internet brokers.
  • the client may be limited in the amount of information the client obtains about the investments and amount of feedback that the client provides the money manager. Updating the IPS may be difficult or inconvenient.
  • the invention relates, in one embodiment, to a method, apparatus, and operating system for providing separate accounts services through the Internet to a plurality of clients.
  • the invention relates, in one embodiment, to a software implemented operating system for facilitating data transfer through a computer network between clients, ebrokers, and money managers.
  • another embodiment of the invention provides a software implemented operating system for facilitating data transfer through the Internet between clients, ebrokers, and money managers.
  • the invention relates, in one embodiment, to a method for providing improved transaction reporting for a brokerage account set up by a broker for a client, where a service is an advisor and a manager is a subadvisor of the brokerage account, comprising the steps of: reporting the placing of trades by the manager to the service; reporting trade confirmations by the broker to the service; updating account status by the service; and providing the client with account status through the Internet access with the service.
  • the invention relates, in one embodiment, to a method of providing a linked investment policy statement over a computer network.
  • the invention relates, in one embodiment, to a method for providing a separate account type of ebrokerage account through an ebroker web site.
  • the invention relates, in one embodiment, to a method of providing a client an account review for an existing client account over a computer network.
  • the invention relates, in one embodiment, to a method for providing communication between a client and a manager of the client's brokerage account.
  • the invention relates, in one embodiment, to a method for providing payment for a managed online brokerage account for a client.
  • the invention relates, in one embodiment, to a method of matching managers with clients.
  • FIG. 1 is a flow chart of how a separate account may be processed in the prior art.
  • FIG. 2 is an illustration of the client's choices of money managers in the prior art.
  • FIG. 3 is an illustration of a computing system.
  • FIG. 4 is block diagram of the computing system shown in FIG. 3.
  • FIG. 5 is a high-level flow chart of a preferred embodiment of the invention.
  • FIG. 6 is a flow chart of the opening of a separate account in a preferred embodiment of the invention.
  • FIG. 7 is an illustration of the client's choices of money managers in a preferred embodiment of the invention.
  • FIG. 8 is an illustration of the relationships in opening an account in the preferred embodiment of the invention.
  • FIG. 9 is an illustration of an alternative relationship in opening an account the preferred embodiment of the invention.
  • FIG. 10 is an illustration of the data flow after a separate account is opened.
  • FIG. 11 is an illustration of the relationships that the service provides over the Internet.
  • FIG. 12 illustrates the interactive aspect of the questionnaire.
  • FIG. 13 illustrates the link between the questionnaire and the linked IPS.
  • FIG. 14 is an illustration of a periodic review process in a preferred embodiment of the invention.
  • FIG. 15 is a schematic illustration of the asset flow in a preferred embodiment of the invention.
  • FIG. 16 is a flow chart of the asset flow illustrated in FIG. 15.
  • FIG. 17 is a schematic illustration of information flow for matching a client with a manager.
  • FIG. 18 is a flow chart for the process of generating a manager list.
  • FIG. 19 is a schematic example of a field form.
  • FIG. 20 is a schematic view of a system that allows an ebroker to provide separate account services.
  • FIG. 21 is a flow chart for the process of establishing a separate account through an ebroker.
  • FIGS. 3 and 4 illustrate a computer system 900, which is suitable for implementing embodiments of the present invention.
  • FIG. 3 shows one possible physical form of the computer system.
  • the computer system may have many physical forms ranging from an integrated circuit, a printed circuit board, and a small handheld device up to a huge super computer or a cluster of computers.
  • Computer system 900 includes a monitor 902, a display 904, a housing 906, a disk drive 908, a keyboard 910, and a mouse 912.
  • Disk 914 is a computer-readable medium used to transfer data to and from computer system 900.
  • FIG. 4 is an example of a block diagram for computer system 900. Attached to system bus 920 are a wide variety of subsystems.
  • Processor(s) 922 also referred to as central processing units, or CPUs
  • Memory 924 includes random access memory (RAM) and read-only memory (ROM).
  • RAM random access memory
  • ROM read-only memory
  • RAM random access memory
  • ROM read-only memory
  • Both of these types of memories may include any suitabletype of the computer- readable media described below.
  • a fixed disk 926 is also coupled bi-directionally to CPU 922; it provides additional data storage capacity and may also include any of the computer-readable media described below.
  • Fixed disk 926 may be used to store programs, data, and the like and is typically a secondary storage medium (such as a hard disk) that is slower than primary storage. It will be appreciated that the information retained within fixed disk 926, may, in appropriate cases, be incorporated in standard fashion as virtual memory in memory 924.
  • Removable disk 914 may take the form of any of the computer-readable media described below.
  • CPU 922 is also coupled to a variety of input/output devices such as display 904, keyboard 910, mouse 912 and speakers 930.
  • an input/output device may be any of: video displays, track balls, mice, keyboards, microphones, touch-sensitive displays, transducer card readers, magnetic or paper tape readers, tablets, styluses, voice or handwriting recognizers, biometrics readers, or other computers.
  • CPU 922 optionally may be coupled to another computer or telecommunications network using network interface 940. With such a network interface, it is contemplated that the CPU might receive information from the network, or might output information to the network in the course of performing the above-described method steps.
  • method embodiments of the present invention may execute solely upon CPU 922 or may execute over a network such as the Internet in conjunction with a remote CPU that shares a portion of the processing.
  • embodiments of the present invention further relate to computer storage products with a computer-readable medium that have computer code thereon for performing various computer-implemented operations.
  • the media and computer code maybe those specially designed and constructed for the purposes of the present invention, or they may be of the kind well known and available to those having skill in the computer software arts.
  • Examples of computer-readable media include, but are not limited to: magnetic media such as hard disks, floppy disks, and magnetic tape; optical media such as CD-ROMs and holographic devices; magneto-optical media such as floptical disks; and hardware devices that are specially configured to store and execute program code, such as application-specific integrated circuits (ASICs), programmable logic devices (PLDs) and ROM and RAM devices.
  • Examples of computer code include machine code, such as produced by a compiler, and files containing higher level code that are executed by a computer using an interpreter.
  • FIG. 5 is a high-level flow chart of an internet facilitated account service (service) that provides a separate accounts delivery system in a preferred embodiment of the invention.
  • a client connects to the service (step 502), which in the preferred embodiment is a connection through the Internet to a web page.
  • the service determines if the client is registered (step 504), possibly by asking the client. If the client is not registered, the service allows the client to register (step 508). If the client is registered, the service allows the client to log in (step 512).
  • step 516 Once logged in the client may have the option to set up an account (step 516), review the client's account status (step 520), review a periodic report on the client's account (step 524), exchange messages, such as email, with the client's money manager (step 528), look up information regarding stocks, investments, manager performance or other things (step 532), or go through a periodic review (step 536).
  • These options may be provided as buttons or other selections on a web page.
  • a client may first select a button on a web page to set up an account (step 516).
  • FIG. 6 is a more detailed flow chart of how a client may set up an account (step 516) in the preferred embodiment of the invention.
  • the client selects on a web page for the Internet facilitated account service (service) a button or link to set up an account (step 604).
  • the service provides the client a series of web pages that act as an interactive questionnaire.
  • the interactive questionnaire could be an applet and/or scripting.
  • the client may then complete an interactive questionnaire at the web site (step 608).
  • the interactive questionnaire may employ an artificial intelligence or may use hyperlinks or a database to provide questions where some of the questions may be dependent upon answers to previous questions.
  • the interactive questionnaire would allow the client to obtain information or definitions if the client has questions about terminology.
  • the web site would also allow the client to go through tutorials about capital markets either as part of or separate from the questionnaire.
  • the interactive questionnaire would ask three general questions, which are: 1) Who the client is? 2) What are the client's goals? 3) How does the client want to achieve those goals? 1) Questions regarding who the client is cover the client's name, address, phone number, tax bracket, number of dependents, income, and education regarding capital markets.
  • An interactive aspect of the questionnaire may provide a tutorial on capital markets if the client needs more information.
  • FIG. 12 illustrates the interactive aspect of the questionnaire.
  • the service 704 provides a question 1204 to the client 200.
  • the client 200 provides an answer 1208 to the service 704.
  • the answer is analyzed 1212 by the service 704.
  • a new question is selected 1202.
  • the new question 1204 is provided to the client 200. If a tutorial is suggested from an answer then information instead of a question is provided. 2)
  • Questions regarding the client's goals include questions about the amount of return the client is looking for and whether the goal is a college fund or for retirement or other objectives.
  • Questions regarding how the client wants to achieve the goals include questions about the amount of risk the client is comfortable with, the amount of assets to be invested, whether the investment is long term or short term, and questions of the client's preferences.
  • Questions about the client's preferences may include questions about whether a client is interested in investing in or avoiding certain stocks due to political, religious, or other reasons such as the avoidance of certain stock to avoid insider trading.
  • Another example of the interactiveness of the questionnaire is that if the client indicates that the client wants social responsible stock the questionnaire may ask more specific questions regarding how the client wants to be socially responsible, such as avoiding companies with certain types of products. On the other hand, if the client does not want socially responsible stock, then questions regarding the specifics of social responsibility will not be provided to the client.
  • the service using a computing system and analysis software, is able to automatically and instantly create a linked investment policy statement for the client (step 612), which is displayed to the client.
  • a linked investment policy statement might state, for example, that the client's asset allocation would have 20% invested in international stocks, 20% kept as cash, 20% in bonds and 40% in domestic equities, with no stocks in oil companies to avoid insider trading.
  • the asset allocation is uniquely determined for each client and is dependent on the client's current situation, goals, and how the client wants to achieve the goals.
  • the investment policy statement is linked in that the client may select a part of the investment policy statement, which is linked to part of the questionnaire and which will cause that part ol the questionnaire to be displayed.
  • the client may change the answers on that part of the questionnaire, which will cause the investment policy statement to change (step 618).
  • the link between the investment policy statement and the questionnaire may be through the use of hypertext, an applet, and/or scripting.
  • FIG. 13 illustrates the link between the questionnaire and the linked IP S. If the client is not satisfied with part 2 of the linked IPS by selecting part 2 of the linked IPS, the associated part of the questionnaire, in this example part 2 of the questionnaire, is displayed. By changing part 2 of the questionnaire, part 2 of the linked IPS is changed. When the client is satisfied with the linked investment policy sta .ement, the client submits the investment policy statement. This linking allows the link* d IPS to be modified, and also maintains legal language that is required in an investment policy statement. When the client is satisfied with the linked IPS, the client submits the finalized linked IPS (step 620).
  • the service creates, either manually or automatically, from the submitted linked
  • IPS a list of money managers, which the service submits to the client (step 624).
  • the available money managers may include any money manager that would be willing to accept referrals from the service and who have met stringent due-diligence requirements of the service (approved money managers). This would allow independent approved money managers or approved money managers associated with different brokers or other outside vendors to be available to the service.
  • the list would list the approved money managers that have an investment philosophy closest to the client's investment policy statement. In the preferred embodiment, if an approved money manager from a broker or outside vendor is suggested, the list would also include an approved money manager from another broker or outside vendor to provide the client with a better variety of choices. These choices would be ranked on a "best fit" basis, using extensive screening to determine "best fit”.
  • FIG. 7 is a an illustration of how a client 200 using the service 704 is not tied to a consultant/broker and therefore may have access to approved managers 212, 213, 214, and 215.
  • the service uses the Internet to provide links to information regarding the money managers.
  • Such online links may have information for a money manager such as information regarding the type of risk that the manager prefers, whether the manager invests more domestically or internationally, whether the manager is bond oriented, how the manager compares to peers, and how long the principals have been with the manager.
  • the client selects a money manager and transmits the selection to the service (step 628).
  • the client also selects a broker and transmits the selection to the service (step 632).
  • the broker is an online broker service (or Internet broker), which may provide low cost brokerage services.
  • the service may display several online broker service buttons on a web page, allowing the client to select a button to find more information about the broker service and to ultimately select one of the online broker services.
  • the service may provide a due diligence analysis of each broker, so that each broker available to the client will provide satisfactory service.
  • FIG. 8 illustrates the relationships in opening an account in the preferred embodiment of the invention.
  • the client 200 exchanges information with the Internet facilitated service 704 over the Internet. Once the client 200 has selected a money manager 808 and online broker 812, the service 704 provides selection notification to the money manager 808 and online broker 812.
  • the client may first select an online broker service, which provides a connection to the web site of the separate accounts service. Since the client has already selected an online broker and has entered the web site of the separate accounts service through the online broker, the service may skip the selection of the online broker after the manager is selected.
  • FIG. 9 illustrates the alternative relationship in opening an account that the service 704 in the preferred embodiment may also provide.
  • a client 200 may first choose an online broker 812. The client may have been using the online broker 812 for stock trading before considering services provided by the Internet facilitated account service 704. Through the online broker 812 the client 200 may reach the service's 704 web site. In such a case, as discussed above, the client has already chosen a broker and so the service 704 simply helps to choose a money manager 808 and set up a separate account using the online broker 812.
  • the client provides funds to the online broker and an brokerage account is set up, which allows the service to have discretionary authority to manage and trade for the account as an advisor with the selected money manager being a subadvisor to the service (step 636).
  • Funds may be provided directly from the client 200 to the online broker 812 or through the service 704.
  • the manager invests the funds according to the investment policy statement asset allocation as allowed by the service 704 (step 640).
  • FIG. 15 is a schematic illustration of the asset flow between the clients 200, service 704, money managers 808, and an e-broker 812.
  • FIG. 16 is a flow chart of the process shown in FIG. 15.
  • a client 200 provides funds with an e-broker 812, such as E*TRADETM, to open an online brokerage account 1504, naming the service 704 as the advisor to the online brokerage account 1504 with authority to make trades and remove assets from the brokerage account (step 1604).
  • the service 704 names at least one money manager 808 as a subadvisor to the brokerage account 1504 (step 1608).
  • the at least one money manager 808 places orders with the e-broker to trade the assets of the online brokerage accounts, where the orders are placed through the World Wide Web of the Internet (step 1612).
  • the terms for management of an online client brokerage account 1504 through an e-broker 812 also allows the service 704 to withdraw a specified percentage of the assets from the brokerage account 1504 on a periodic basis as payment for services.
  • the terms for management of the online client brokerage account may provide that the service 704 is paid 25 basis points (0.25% of the value of the brokerage account 1504) on a quarterly basis.
  • An agreement between the service 704 and the managers 808 may provide that the service 704 pays each manager 808 a percentage of the assets managed by the manager 808.
  • the terms may provide that 12.5 basis point (0.125% of the value of the assets in brokerage account managed by the manager) be paid to the manager on a quarterly basis.
  • the service 704 may withdraw 25 basis points from the brokerage account 1504 (step 1616) and pays 12.5 basis points to the money managers 808 (step 1620).
  • Transfers of funds from the brokerage account to the service 704 are preferably made electronically, but may also be paid by check or some other payment devices.
  • Payment from the service 704 to the money managers 808 are preferably made electronically, but may also be paid by check or some other payment devices.
  • the first money manager would receive a payment of 0.125% of 70% of the online brokerage account and the second money manager would receive a payment of 0.125% of 30% of the online brokerage account.
  • the client 200 is able to directly provide additional funds to the online brokerage account 1504 directly through the online broker 812 and directly receive funds from the online brokerage account 1504 through the online broker (transaction 1512).
  • the client 200 provides funds to and receives funds from the brokerage account 1504 indirectly through the service 704 (transaction 1516) which provides transfers through the e-broker 812 (transaction 1520).
  • transaction 1516 provides transfers through the e-broker 812
  • Various combinations may be used in various embodiments, such as allowing a client
  • One method for allowing the client 200 to withdraw funds is to supply the client with a check book to allow the client to write checks, which are drawn from the online brokerage account.
  • Another way of withdrawing funds is by electronic transfer of funds.
  • payment to the money managers 808 is directly from the e-broker 812 to the money manager 808 (transaction 1524).
  • the service and/or the online broker allows the client to have read only access to the brokerage account, so that the client may 24 hours a day and 7 days a week have access to view the status of the brokerage account (520).
  • the service also provides an annual report to the client regarding the status of the account and tax liabilities (524).
  • the annual report is sent in hard copy by mail or is sent electronically by email or as a web page, which may be printed out.
  • the preferred embodiment of the invention also provides a periodic or on demand account review (536). On a periodic basis (for example quarterly), a notice is electronically sent to the client requesting a periodic account review.
  • a button on the web page of the service also allows the client to select an account review on demand at any time.
  • the account review has the client review certain parts of the questionnaire to see if anything about the client has changed, such as a divorce or a change in income, or to see if the client's goals, or preference of how to reach t ie goals has changed.
  • the client would change answers to the questionnaire to reflect ⁇ uch changes.
  • the account review determines whether the client requires additional education, and educates the client on changes in the market, such as whether international markets are getting stronger, and any other noteworthy news, such as news about the manager. If answers on the questionnaire are changed, a new linked IPS is generated and the account is reviewed to see if the money manager 808 or the e-broker 812 needs to be changed in view of the new linked IPS.
  • FIG. 14 is an illustration of a periodic or on demand account review process in a preferred embodiment of the invention.
  • the service provides the client with information regarding changes in the stock market and the money manager and to re-educate the client (step 1404).
  • the client updates the interactive questionnaire at the web site (step 1408). From the updated answers to the questionnaire the linked investment policy statement for the client is updated (step 1412).
  • the client reviews the updated linked IPS (step 1416) and uses the links to change answers in the questionnaire (step 1418).
  • the client submits the finalized linked IPS (step 1420).
  • the service either manually or automatically, determines from the submitted IP S whether a new money manager and/or broker is recommended (step 1424).
  • the client is allowed to choose a new money manager (step 1428) and/or a new broker (step 1432). If a new money manager is selected, then the old manager is removed as a subadvisor and the new manager is added as a new subadvisor for the client's account. If a new broker is selected, the account moneys are transferred from the old broker to the new broker.
  • the service also provides an online connection to the money manager, which allows the client to electronically communicate with the money manager regarding investments and investment strategies (528). Since the client has continuous access to review the status of the account and can electronically communicate with the money manager, the client is able to be more involved with the investments of the client's account. Online communications between a money manager and client allows a client to communicate with needing to confront a money manager face to face, since face to face confrontations may be more intimidating.
  • FIG. 10 is an illustration of the data flow after the client 200 provides funds to the online broker 812.
  • the money manager 808 is able to place trades with the online broker 812 and provides trade notification to the service 704.
  • the online broker 812 sends a trade confirmation to the money manager 808 and to the service 704.
  • the service 704 keeps track of the trades and the daily stock prices to provide a continuously (or daily) updated account status.
  • the service may allow the client to see stock performance of the stock in the account.
  • the service may also allow the client to see the performance of the account with regard to the IPS goal or the S & P 500 or another index on a continuous basis.
  • the client 200 is able to read the account status from the service 704.
  • the online broker 812 may maintain an account status, which may be viewed by the client 200.
  • the client 200 and the money manager 808 are able to communicate electronically regarding investment strategies.
  • FIG. 11 is an illustration of the relationships that the service 704 provides over an Internet system 840.
  • the service 704 has a database 850 and a central processing system CPU 848.
  • the database 850 may be stored on a single storage medium or a distributed storage medium.
  • the CPU 848 could be a single CPU or parallel CPU's or a distribution of CPU's, such as several central processing systems in a cluster of computers.
  • a plurality of clients 200 may be located at a geographically remote distances and may have access to the service 704 through the Internet 840.
  • the service 704 may store information regarding the plurality of clients 200 in the database 850.
  • the service 704 provides to a plurality of money managers 808, who may be spread apart geographically, access to the service 704 through the Internet 840.
  • Information regarding the plurality of money managers 808 may be stored in the database 850.
  • the service 704 provides links to the plurality of money managers 808, so that the plurality of clients may have access to either communicate with or find information about the plurality of money managers 808.
  • the CPU 848 runs software that provides an interactive questionnaire and generates a linked IPS.
  • the CPU 848 also runs software that may process a linked investment policy statement of a client 200 stored on the database 850 and process information regarding the plurality of money managers 808 stored on the database 850 to obtain a list of money managers in ranked order as a function of the IPS.
  • the service 704 provides to a plurality of e-brokers (or online brokers) 812 who may be spread apart geographically, access to the service 704 through the Internet 840.
  • the service 704 provides links to the plurality of e-brokers 808, so that the plurality of clients 200 may have access to either communicate with or find information about the plurality of e- brokers 808. More detailed explanations about the relationships that the service 704 provides between clients 200, e-brokers 812, and money managers 808 is described in other parts of the specification.
  • the service 704 also provides to the plurality of clients 200 support services 820, which may be spread apart geographically, but which have access to the service 704 through the Internet 840.
  • Some of these services may be online advice services 824 which may provide stock tips and investment strategy advice, local registered investment advisors (RIA) 828 that may wish to affiliate with the service to obtain customers, and performance measurement devices 832 which might be software that helps to measure the money manager's or stock's performance.
  • the service 704 is able to provide all of these geographically remote services to a plurality of geographically remote clients 200 at the client's home or office at a significant cost saving. By bringing these groups together from distant geographical locations over the Internet and providing automated services to clients 24 hours a day, and by providing interactive questionnaires, linked investment policy statements, periodic and on demand account reviews, and due- diligence analysis the service 704 may be able to provide a quality service to large numbers of clients at greater cost savings.
  • FIG. 17 is a schematic illustration of the flow of information relating to the matching of a manager with a client, with FIG. 18 being a flow chart of the process performed by the service 704.
  • the service 704 electronically sends a request for proposal or request for information (RFP/RFI) 1766, 1774 to a first manager system 1708 of a first manager 1704 and a second manager system 1716 of a second manager 1712 (step 1804). More than two managers may be used, however two managers are illustrated for clarity.
  • the RFP/RFI 1766, 1774 may be transmitted by E-mail or may be a web page one the service 704 web site.
  • a request for proposal (RFP) may be a request to a manager to provide a proposal for the management of assets.
  • a request for information may be a request to a manager for either specific information or updated information.
  • An RFP and/or RFI may be generally referred to in the specification and claims as a "request”.
  • the first manager 1704 and the second manager 1712 complete an RFP/RFI response (request response) and electronically transmit an RFP/RFI response 1770, 1778 back to the service 704 (step 1808).
  • the electronic transmission of the RFP RFI response 1770, 1778 may be by E-mail or the submission of a complete form on a web site on the service 704.
  • the RFP/RFI responses 1570, 1578 may be stored in the database 850 of the service 704.
  • the CPU 848 of the service 704 processes the RFP/RFI responses 1770, 1778 to perform a due diligence on the first and second money managers 1704, 1712 and to generate or update a file of data relating to the first or second money manager, which may be stored in the database 850 (step 1812).
  • the receipt and storage of the RFP/RFI responses 1770, 1778 is completely computer implemented.
  • the generation or updating of a file of data relating to the first or second money manager is completely computer implemented.
  • the due diligence analysis of the RFP/RFI responses 1770, 1778 is completely computer implemented.
  • a first client 1730 using a first client system 1734 electronically submits a linked IPS 1750 to the service 704 and a second client 1738 using a second client system 1742 electronically submits a linked IPS 1758 to the service 704 (step 1816).
  • the submission of the linked IPS's 1750, 1758 is done by the submission of a web form to a web site on the service 704. In another embodiment of the invention, the submission of a linked IPS may be done by E-mail.
  • the linked IPS's 1750 1758 may be stored in the database 850 of the service 704. As discussed above regarding FIG.
  • the linked IPS and the data on each manager generated from the RFP/RFI responses are used to generate a ranked list of money managers (step 1820).
  • the reception and analysis of a linked IPS is completely computer implemented.
  • the CPU 848 may automatically extract data from a linked IPS and analyze such data.
  • the use of the linked IPS to provide a ranked list of money managers is completely computer implemented.
  • the CPU 848 would use the data generated regarding the money managers and the da1 a from the linked IPS and perform an analysis to provide the ranked list of money managers.
  • the ranked list of money managers are electronically transmitt d to the first client system 1734 and the second client system 1742 (step 1824).
  • the electronically transmitted manager lists maybe transmitted by E-mail or as a web page on the web site on the service 704.
  • FIG. 19 illustrates an example of a field form 1904, which is a computer readable electronic document with fields for data.
  • the field form 1904 may have a single line filed 1908 for accepting a single line of information.
  • the field form 1904 may have a pull down menu 1912 to allow the selection of a choice by using the pull down menu.
  • the field form 1904 may have check box choices 1916 to allow the selection of a choice by selecting a box or other item.
  • the field form 1904 may have a multiple line field 1920, which allows multiple lines of data to be entered. Other types of data fields are known in the art.
  • the field form 1904 may also have labels 1930, which allow a user to identify a data field.
  • the field form 1904 is preferably a field form displayed on a web site as a web page.
  • the field form may be transferred by E-mail or downloaded from a web site.
  • the field form that is transferred by E-mail or downloaded may be a database or spreadsheet form, or a word processing form that has fields for data. Pages in the questionnaire may also be field forms.
  • the field form maybe interactive, so that the request is interactive. Therefore the interactive questionnaire maybe an interactive field form.
  • the linked IPS may be a type of field form where the computer provides the data in the fields based on responses to the interactive questionnaire.
  • the electronic transmission of the RFP/RFI, RFP/RFI responses, IPS, and manager list allows for a faster and more automated system. For example, the electronic submission of an IPS and a computer implemented process to provide a manager list, which is electronically transmitted to a client may allow the client to obtain a manager list almost instantaneously. Such a process may allow a client to open a separate account during a single session or over a short period of time, instead of requiring several visits over an extended period of time.
  • the internet facilitated account service provides mutual account services, or bank account mixes (such as a CD, checking and savings account mix to meet an IPS), or annuities and insurance mixes.
  • the invention uses a dialup service in place of the Internet.
  • Such a dialup service maintains data at a central computer system, which a client connects to via a modem and dial in connection.
  • the service may be menu based to provide the above described features, such as using to online brokers.
  • the money manager would then be an advisor with authority to manage the account and may be periodically paid from the account.
  • This service may allow the client a wider selection of money managers, since the service may provide money managers from different consultant/brokers.
  • This service may allow the client a choice of brokers.
  • This service may allow the client to use an online broker for separate accounts, which may offer lower prices than traditional brokers.
  • the interactive questionnaire and linked investment policy statement may allow the client to provide a more appropriate investment policy statement.
  • Online access to the brokerage account may allow the client more up to date information regarding the separate account.
  • Online access to the money manager may allow the client more input into investment strategies and may allow the money manager better input regarding the client's preferences.
  • the service may also reduce costs by eliminating the need for consultant brokers at brick and mortar locations.
  • the service is available anywhere, so that the client does not even need to leave home.
  • the service is available 24 hours a day.
  • the service cuts marketing costs for money managers, which may be as high as 30% of the money manager's cost of doing business.
  • the service can handle large numbers of clients at geographically remote distances.
  • an ebroker may provide separate account services.
  • Ebrokers in this embodiment and related claims are preferably discount ebrokers defined as services that provide web sites that offer stock trading over the Internet without providing personal advice on money management to a client beyond educational information, which allows the client to receive low cost trading, such as E*tradeTM, Datek OnlineTM, National Discount Broker'sTM web site, and AmeritradeTM.
  • Full service brokers that provide personalized money management advice may require higher prices to place trades as a method of paying for the advice. In other words, to provide a discount price a discount ebroker may prefer not to offer the advice provided by a full service broker, since providing advice may increase costs and increases the ebroker' s liability.
  • Discount ebrokers may also generate revenue from high volume trades, which allows them to provide discount trading.
  • discount ebrokers are geared for trading, volume and activity, which allows for the high volume and low costs.
  • these discount ebrokers have access to a large and growing number of clients. It has been found that when account assets reach $100,000 that many clients become more interested in obtaining management advice. If a discount ebroker is not able to provide this advice, these clients are forced to use full service brokers to obtain such advice. Therefore it would be desirable to provide an ebroker with discount trading which is able to provide a service which provides a client with professional and personal money management advice.
  • Figure 20 illustrates an embodiment of the invention, which allows an ebroker, preferably a discount ebroker (a stock broker whose primary delivery of stock trades is over the Internet as an online pure play), to more directly provide separate accounts service.
  • An ebroker web site 2004 may comprise a conventional ebroker web site 2008, client accounts, and a logic engine 2012.
  • the logic engine 2012 is connected to a first interface 2028, which provides an Internet connection to a plurality of money managers 2020 (separate account managers, who are managers who mainly trade stock) and a second interface 2032, which provides an Internet connection to a plurality of clients 2024 over the Internet.
  • the logic engine 2012 is connected to a third interface, which provides communications between the conventional ebroker web site 2008 and the logic engine 2012.
  • the logic engine 2012 since the logic engine 2012 is part of the ebroker web site 2004, the conventional ebroker web site 2008 and the logic engine 2012 may be subroutines or objects in a program on a single computer with the communications between them passing information between each the subroutines or objects.
  • the logic engine 2012 may be on a separate computer than the conventional ebroker web site 2004, where the third interface 2030 passes information through a computer network, such as an intranet, which is part of the Internet.
  • the conventional ebroker web site 2008 may also have a connection 2036 through the Internet to the plurality of clients 2024 or may share the connection between the logic engine 2012 and the plurality of clients 2024 through the second interface 2032.
  • Figure 21 is a flow chart of a method for an ebroker to provide separate account services without incurring the expense or liability of providing advice.
  • Information concerning a plurality of money managers 2020 is collected and stored in the logic engine 2012 (step 2102). In the preferred embodiment, this is done by transmitting a plurality of requests for proposals or requests for information from the logic engine 2012 through the first interface 2028 and through the Internet to the plurality of money managers 2020.
  • the request for proposals or requests for information may be done as web pages or email using a field form.
  • the money managers 2020 provide a response, preferably over the Internet through the first interface 2028.
  • a client 2024 of the plurality of clients opens a client account 2016 with a regular type of ebrokerage account 2050 through the conventional ebroker web site 2008 (step 2104).
  • a regular type of ebrokerage account information regarding the client, such as name, address, and social security number are provided by the client.
  • the conventional ebroker web site 2008 may also provide a link, such as a hyr ertext link on a web page, to allow the client to open a separate account type of eb ⁇ oker?.ge account. If the client 2024 selects the link (step 2108) the client 2024 is directed to the logic engine 2012 which provides a questionnaire, which is transmitted to the client 2024 through the second interface 2032 over the
  • the questionnaire may be an interactive questionnaire displayed as a web page form as described in the previous embodiments. Since in this embodiment, the ebroker 2004 does not desire to provide advice, the questionnaire might be much simpler than the previous embodiments and might not be interactive and might be displayed as a web page or transmitted by email.
  • the client completes the questionnaire and transmits the questionnaire to the logic engine 2012 over the Internet through the second interface 2032, as described in the previous embodiments.
  • the logic engine 2012 automatically strips the data from the questionnaire and uses it with the stored data for the money managers 2020 to generate a list of managers that are most closely related to the response from the questionnaire.
  • the manager list is transmitted to the clients 2024 through the second interface 2032 over the Internet preferably as a web page or email message.
  • the ebroker 2004 may include with the manager list a disclaimer that the manager list is just a matching service that ranks manager investment strategy according to client preferences and not advice about the preferableness of a money manager.
  • the ebroker 2004 may perform due diligence on each manager or may not perform such due diligence.
  • the ebroker 2004 may provide links to each of the plurality of money managers 2020.
  • the client 2024 may select a money manager (step 2112) by selecting a link to a money manager 2020 that is either listed on the manager list or is not.
  • the link may allow the client 2024 to communicate directly to the selected money manager 2020 either through a direct Internet connections 2040 or through the logic engine 2012.
  • the client makes arrangements with the selected money manager 2020 to manage a separate account for the client.
  • a first separate account type of ebrokerage account 2054 of the client account 2016 is set up from a portion or all of the assets of the regular type of ebrokerage account 2050 of the client account (step 2116). Since the first separate account type of ebrokerage account 2054 is part of the client account 2016, the client does not need to reenter information such as the client's name, address, and social security number.
  • the client 2024 then provides to the ebroker 2004 authorization for the selected money manager 2020 to place stock trades for the separate account and withdraw funds from the separate account as payment for management (step 2120).
  • the client 2024 would be able to view the status of the separate account type of ebrokerage account using the conventional ebroker web site 2008 (step 2124) and would receive tax reports from the conventional ebroker web site 2008 (step 2128).
  • the selected money manager 2020 would be able to withdraw funds from the first separate account type of ebrokerage account 2054, for example 50 basis points, from the first separate account type of ebrokerage account 2054 (step 2132).
  • the client may decide to replace the selected money manager with a second money manager. The client may do this by providing a change in money manager designation to the logic engine 2012 (step 2136).
  • the ebroker 2004 would then remove the selected money manager and allow a second money manager to manage the separate account type of ebrokerage account (step 2140). If the client desires more diversity by having a third money manager, with a different investment strategy from the second money manager, manage some of the assets, the client may create a second separate account type of ebrokerage account 2058 of the client account 2016 from assets of either the regular type of ebrokerage account 2050 or the first separate account type of ebrokerage account 2054 and designate that the second separate account type of ebrokerage account 2058 is to be managed by the third money manager (step 2144).
  • a single client of an ebroker may have a client account with a regular type of ebrokerage account, which is managed directly by the client, and a plurality of separate account type of ebrokerage accounts, which may be managed by different money managers.
  • the ebroker may allow for a direct selection of a money manager. With a single click on a link for a money manager, a regular type of ebrokerage account maybe converted to a separate account type of ebrokerage account. In such a case, the ebroker would contact the money manager and provide the money manager with authorization to manage the separate account type of ebrokerage account.
  • the client may simply enter a dollar amount and click on a link for a money manager and the ebroker creates a new separate account type of ebrokerage account where funds equal to the entered dollar amount are transferred from the regular type of ebrokerage account to the separate account type of ebrokerage account. Then the ebroker would contact the money manager and provide the money manager with authorization to manage the separate account type of ebrokerage account.
  • the logic engine 2012 serves as the service 704 in previous embodiments.
  • the logic engine 2012 may be used as the service 704 in the previous embodiments, where the logic engine 2012 may not be part of the ebroker web site, and where the third interface of the logic engine is communicates to a plurality of ebrokers over the Internet.
  • a software implemented operating system for facilitating data transfer through the Internet between clients, ebrokers, and money managers, comprising: a logic engine for switching information between at least two of said clients, ebrokers, and money managers; a first interface between said logic engine and said money managers, said first interface receiving from said money managers information regarding each money manger' s investment philosophy; a second interface between said logic engine and said clients, said second interface receiving from receiving from said client information regarding client preferences, wherein said logic engine generates from said client information and money manager information a manager list, which is transmitted to the client through the second interface; and a third interface between said logic engine and said ebrokers, said third interface receiving trade confirmations from said ebrokers in a first direction; wherein said logic engine processes the placement of trades and trade confirmation to update client account information; and, wherein said logic engine, said first interface, said second interface, and said third interface are connected to the clients, ebrokers, and money managers over the Internet.

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Abstract

L'invention concerne un service (704) de compte rendu, dont l'utilisation est facilitée, délivrant des services de compte séparé aux clients (200) sur l'Internet. Le service fournit des services de compte séparé en utilisant un courtier (812) en ligne d'Internet, et dans ce service, des gestionnaires de fonds (808) peuvent être associés à différents services de courtier. Un système d'exploitation logiciel permet de faciliter des transferts de données via un réseau d'ordinateurs, tel que l'Internet, entre clients, courtiers en ligne, et gestionnaires de fonds. Le système d'exploitation possède un moteur logique permettant de commuter une information entre au moins deux clients, courtiers en ligne, et gestionnaires de fonds. Un service de compte séparé permet d'améliorer les rapports de transaction entre le service, des gestionnaires, des courtiers et des clients. On utilise une déclaration de politique liée à l'investissement pour la mise en place des services de compte séparé. Un client reçoit un questionnaire interactif via l'Internet et on utilise les réponses du client pour déterminer quelles questions devraient lui être fournies. Il existe une revue de compte en ligne pour des services de compte séparé. Le système de compte séparé en ligne permet une amélioration des communications. Une requête automatisée permet de réaliser proposition ou requête pour le système d'information. Un courtier (812) en ligne fournit un compte séparé de type compte en ligne. Un compte de courtage en ligne permet à un gestionnaire de fonds de placer des transactions pour le compte de courtage et de collecter des paiements à partir de ce compte.
PCT/US2001/003798 2000-02-15 2001-02-05 Traitement de compte separe WO2001061593A1 (fr)

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US18245800P 2000-02-15 2000-02-15
US60/182,458 2000-02-15
US52738400A 2000-03-16 2000-03-16
US52748600A 2000-03-16 2000-03-16
US52738300A 2000-03-16 2000-03-16
US52738200A 2000-03-16 2000-03-16
US52737800A 2000-03-16 2000-03-16
US09/527,384 2000-03-16
US09/527,378 2000-03-16
US09/527,486 2000-03-16
US09/527,382 2000-03-16
US09/527,383 2000-03-16
US55068800A 2000-04-17 2000-04-17
US55067300A 2000-04-17 2000-04-17
US54987700A 2000-04-17 2000-04-17
US09/550,688 2000-04-17
US09/549,877 2000-04-17
US09/550,673 2000-04-17
US74998500A 2000-12-26 2000-12-26
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US10951658B2 (en) 2018-06-20 2021-03-16 Tugboat Logic, Inc. IT compliance and request for proposal (RFP) management
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US7533034B2 (en) 1999-07-20 2009-05-12 Brainbank, Inc. Idea management
US10951658B2 (en) 2018-06-20 2021-03-16 Tugboat Logic, Inc. IT compliance and request for proposal (RFP) management
US11283840B2 (en) 2018-06-20 2022-03-22 Tugboat Logic, Inc. Usage-tracking of information security (InfoSec) entities for security assurance
US11425160B2 (en) 2018-06-20 2022-08-23 OneTrust, LLC Automated risk assessment module with real-time compliance monitoring
US12166788B2 (en) 2018-06-20 2024-12-10 Onetrust Llc Automated risk assessment module with real-time compliance monitoring
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