Paperwork_Binders_ACContent provided by Michele Prell, CLS New Business Manager

By now, I’m sure most of you have heard about CLS’s simplification movement. I’m here to give you an overview of how this change has allowed us to update and simplify our CLS paperwork.

Client Profile

First, let’s take a look at the Client Profile form. What used to be five pages has been slimmed down to three pages (not including the privacy policy and investment advisory agreement). We changed both electronic delivery of information (section 3) and the solicitor authorization (section 4) to only require client initials. All required signatures by clients, advisors, and CLS have been placed on one page for quick reference.

The largest change to the Client Profile was moving the investment objective section to the strategy selection pages. This made sense since the risk budget is tracked per account and not on a household level.

Just as before, if you are submitting an account for an existing client at CLS, the Client Profile isn’t necessary. The Client Profile is only required for new clients or household accounts at CLS.

Strategy Selection & Fee Schedules

The most notable change you will see falls within our strategy selection pages. As mentioned above, the strategy selection now also includes the investment objective forms. Instead of creating a bundle for each strategy, we have bundled our strategy selection by custodian. And we now only have four options. Below is a listing of how the new strategy selections are named in both the CLS website as well as LaserApp.

  1. CLS – Strategy Selection for TD Ameritrade, Schwab, Fidelity IWS
  2. CLS – Strategy Selection for Constellation Trust Company
  3. CLS – Strategy Selection for Retirement Platforms (Fidelity BrokerageLink & TIAA-Cref)
  4. CLS – Strategy Selection for VA Managed Strategies

This change allows CLS to bundle all of our strategy options and the appropriate fee schedule with each custodian. All strategy selection bundles will have strategy options grouped by their primary investments:

  • ETF
  • Mutual Fund
  • Master Manager

You will find these groups in sections 5, 6, or 7 if they are available at the custodian.

The ETF and Master Manager Strategies have the same new tiered fee schedule. CLS’s portion has been hard coded on the paperwork, but the advisor is welcome to choose their retained portion up to a maximum of 1.25%. They can either charge a flat fee, or have the ability to create their own tiered schedule.

Mutual Fund strategies also have a new tiered fee schedule (but with a different fee charged by CLS than on ETF strategies). The advisor is still able to choose their retained portion up to a maximum of 1.25%. Again, they can either charge a flat fee, or have the ability to create their own tiered schedule.

Since the new fee schedules can benefit clients, we created an ETF and Mutual Fund Fee Schedule Change Request form. Advisors are welcome to complete this form to change existing accounts over to the new tiered fee schedule. This form can be found both on the CLS website in the Forms Library or in LaserApp.

In order to make the transition easier, CLS accepted new paperwork through the end of April. We at CLS are extremely excited for the rollout of our simplified paperwork. Advisors can view a demo of the new paperwork by logging into and viewing the “New Paperwork” webinar under the “Education” tab, or feel free to reach out to your dedicated New Business person with any additional questions.