When Excel isn't enough: Modernising Fee Management for Boutique Firms

Excel spreadsheets have long been the go-to solution for boutique asset managers handling fee and distribution channel management. Enhanced with macros and supplemented by in-house systems, these tools have long served as the backbone of operational workflows. But in a landscape that’s more complex than ever, is this approach still sustainable?

The short answer is no. While spreadsheets offer flexibility and familiarity, they create significant operational risks that boutique firms can no longer afford to ignore. Manual processes lead to calculation errors, double rebate payments and unaccounted positions. These are more than administrative headaches, they're regulatory risks that expose firms to fines and reputational damage.

Consider the compliance implications. MiFID II requirements have transformed fund distribution channel management from a straightforward accounting exercise into a complex regulatory obligation. Manual workflows make it challenging to maintain the comprehensive audit trails and standardised reporting that regulators demand. When you factor in emerging ESG integration mandates and evolving digital distribution requirements, the limitations of spreadsheet-based systems become even more apparent.

The financial impact is substantial. Our analysis shows that boutique firms typically spend £300,000 - £450,000 annually on personnel to manage these processes. Technology costs add another £50,000 - £80,000 per year. Yet despite this significant investment, firms still need to provision approximately 1% of total annual rebates paid to cover operational errors – often amounting to £200,000 or more annually.

Scalability follows sustainability. Both can be delivered via: 

• Automated rebate calculations and reconciliation
• Integrated compliance monitoring and reporting
• Real-time visibility into fees and distribution metrics
• Scalable infrastructure that grows with your business
• Reduced operational risk through standardised processes

FE fundinfo's comprehensive Fee Management Platform combines cutting-edge technology with deep industry expertise to help boutique firms modernise their operations. The right solutions can enable up to 50-70% reduction in operational costs while enhancing compliance capabilities and eliminating manual errors.

The choice facing boutique asset managers is clear: continue with manual processes and accept growing operational risks or embrace digital transformation and create a foundation for sustainable growth. In an environment where every basis point counts, can you afford to stick with your spreadsheets?

Download our whitepaper to learn more how and why you should begin modernising your fee and distribution channel management operations.