Calculate your financial potential

The assumptions used in this tool are described below. 

Gross revenue: Revenue collected from clients for all your services. This is estimated as Assets Under Management (AUM) x average basis point earned from these assets; the default is 100 basis points (1%), but you can enter the % per your mix of clients and product offerings. To make the calculation comparable, the calculation assumes that 100% of your current AUM will be transferred to your independent business. 

Broker/dealer share of revenue: The amount of gross revenue withheld by your broker/dealer to cover the broker/dealer profit margin and costs absorbed for the advisor. 

Net revenue for advisor team: Gross revenue x gross payout %. 

Overhead expenses: These expenses are assumed to be fully bound by the owner(s) under an independent model and partially covered by the broker/dealer under the full affiliation model. The tool defaults on the % covered by the broker/dealer to 80% but it can be adjusted by the user. 

Total compensation for non-principal: Compensation for administrative/non-owner staff; estimated at $75,000 per staff member. 

Other expenses: Include expenses for premises, recurring expenses such as insurance, registration, quote services and other office expenses. Premises cost is estimated at a monthly cost of $25 per square foot for downtown Toronto. The actual cost may be significantly different in other metropolitan areas or outside the downtown core. 

Total profit: This amount excludes any drawdown by the owner/principal. 

National Bank Independent Network (NBIN) is a division of National Bank Financial Inc. (NBF) as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF. NBF is a member of the Canadian Investment Regulatory Organization (CIRO) and the Canadian Investor Protection Fund (CIPF). Custody services accessed through NBIN are provided by either NBF or its affiliates National Bank Trust (NBT) or Natcan Trust Company (Natcan). NBT and Natcan also offer trustee services through NBIN. NBF, NBT and Natcan are all subsidiaries of NBC, a public company listed on the Toronto Stock Exchange (TSX: NA).

NBIN provides order execution only and custody account services to independent Portfolio Managers and Investment Dealers. NBIN makes no investment recommendations and assumes no responsibility for the suitability of the investments and/or strategies determined by the Portfolio Managers or Investment Dealers.

This tool (Calculator) is designed to provide a general overview of the earning potential under an independent model. The Calculator is an interactive tool that uses the information that you supply to simulate pro-forma financial results under different scenarios. The general accuracy of the simulated scenarios will depend on how closely the variables chosen by you match your actual circumstances. As such, the Calculator is inherently limited, and the scenarios provided are not meant to be exhaustive or comprehensive and may not be representative of your actual earnings, which may be materially different than those simulated. The simulated results are approximated based on a set of assumptions. They do not and should not in any way be interpreted as a reflection, guarantee or promise of actual or future results or earnings and do not create any legal or contractual obligation for NBIN or any of its affiliates. While every effort is made to keep this tool up to date, NBIN does not make any express or implied warranties or representations with respect to any information or results provided by this Calculator. NBIN shall not be responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information or calculations provided by the Calculator nor be held liable for any loss or damage of any kind whatsoever arising out of, or in connection with the use of the Calculator. This tool is not intended to provide financial, investment, legal, tax, or regulatory compliance advice. You should consult your own professional advisors before taking any action.