Rules that affect how balances are calculated for billing purposes
Asset adjustments are rules governing which assets are used when calculating balances for the purposes of billing. Two types of rules can be applied:
- an exclusion excludes the asset from the balance calculation
- an inclusion allows you limit derived balances solely to included assets.
For example, a common rule is to exclude cash from the derivation of an account balance. Likewise, an advisor may choose to include a set of securities for an account if he or she is providing advice on a limited set of securities. This latter example is less common.
Adjustments can be applied at two different levels:
- firm-level adjustments are applied to all accounts, both current and future
- account-level adjustments are limited to a specific set of accounts; future accounts will not have adjustments applied with this option