Cost Management

Business Requirements Document (BRD)

🧩 Cost Management

🔖 1.0

📅 Friday, 16 Januari 2026

👤 Martijn Bruitsman, Peter Disselkoen

⚙️ Nick Windt

This Epic describes Cost Management and supporting system capabilities to:
Simplify, automate and enhance operational flows for calculcating and collecting charged costs.

️1️⃣ PURPOSE

Ensure accurate and consistent calculation, application, validation, collection, reconciliation, and reporting of all investor account costs and credits, including but not limited to fees, taxes, interest and in accordance with applicable contractual terms.

• Standardize cost categories for consistent reporting and controls.
• Calculate only realized- or booked cost (across all cost categories).
• Supports both debit (charges) and credit (rebates, interest).
• Maintain full auditability and traceability per investor account and label.
• Configuration of charging, collection, triggers, and frequencies per cost category.

Result: transparent and repeatable Cost Management with reliable reporting and reconciliation.

️2️⃣ SCOPE

Key functionalities and objectives included in the delivery of Cost Management:

• Classify all charges and or credits into standard cost categories.
• Calculate, book, and aggregate realized cost per:
  • Investor account.
  • Label.
  • Reporting period.
• Cash interest debit on negative balance and credit on positive balance.
  • Time- and balance-based calculation.
• Capture discounts, rebates, and credits as trigger that reduce gross cost.
• Configurable collection method.
• Provide datalake reporting and audit trail.
• Configurable approval on Cost Management mutations by users.
• Change current cost plan implementation into standardized cost categories.

Configurable options per cost category, including but not limited to:

• Charging method:
  • Flat.
  • Percentage.
  • Balance.
  • Transaction.
• Frequency:
  • One-off.
  • Periodical.
  • Event-driven.
• Trigger:
  • Time.
  • Trade.
  • Balance.
  • Lifecycle event.

3️⃣ GLOSSARY

Term	Definition
User	Label employee authorized to manage the process.
Cost Category	Standard classification bucket for charges/credits.
Cost Plan	Bundle of cost categories assignable to a product and investor account.
Cost Record	Calculated cost instance, saved per investor account.
Realized Amount	Booked charge/credit (no projections or accrual-only values).
Charging Method	How the realized amount is derived.
Collection Method	How a cost record is collected.
Frequency	Frequency for applying the cost.
Trigger	Event that initiates cost calculation.
Relation	Consultancy- or advisory firm connected to an investor account.
Receiving Party	The label or connected relation of an investor account.
Paying Party	An investor account within the label.
Cash Interest Debit	Interest charged on negative cash balance.
Cash Interest Credit	Interest paid on positive cash balance.

4️⃣ BUSINESS REQUIREMENTS

The system will support required Cost Management by reliably responding to defined inputs, system states, and triggering events in a predictable, controlled, and repeatable manner, enforcing business rules, executing configured workflows, handling exceptions, and generating appropriate outputs in accordance with operational requirements and control standards.

4️⃣1️⃣ FUNCTIONAL REQUIREMENTS

Cost Category

• Standardized cost categories with the ability to map all charges/credits.
• Configurable parameters per cost category wihtin a cost plan, including but not limited to:
  • Charging- and collection method.
  • Frequency and trigger.
  • Receiving party.
  • Tax applicable and percentage.
• Aggregation by investor account, cost category and period.

Cost Plan (bundle of cost categories)

• Named cost plan that bundle one or more cost categories (e.g. “Premium Investor Cost Plan”).
• Assign cost plan to products.
  • Contract links investor account to product and inherit the cost plan.
• Permit investor account overriding cost plan:
  • Only cost categories explicitly defined in overriding cost plan, otherwise default applies.
  • Investor account can have an overriding cost plan connected.
• Transaction cost (legacy cost plan) are transformed to cost categories.
• Each cost category within a cost plan includes but is not limited to:
  • Start date and optional end date.
  • Sequential instances, next start date is after the prior end date to support dated changes.

Relation (update current implementation)

• The current relation object will be extend with (not limited to):
  • Communication items.
  • Tax identification number (TIN).
  • Legal Entity Identifier (LEI).
  • Business registration number.

Auditability | Reporting

• Cost record history:
  • Trigger.
  • Calculation input.
  • Rate/amount.
  • Timestamp.
  • Status.
  • User/system actor.
• Datalake reporting by:
  • Investor account.
  • Cost categories.
  • Product.
  • Period.

Charging | Collecting

• Cost record for each calculated cost.
  • Stored per investor account with status.
• Allow users to block a specific cost record from collection.
  • With reason and audit trail.
• Define sequencing, retries and failure handling per method.

---

Delivered in initial release

Configurable collection methods:

• Immediate charging:
  • Transaction cost.
• Selling of assets:
  • Prorata sell order.
• Internal booking.

Delivered in upfollowing releases

Configurable collection methods:

• Billing by invoice.
• Direct debit collection.
• Configurable per investor account when allowed by product.

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Adjustments | Reversals

• Support reversal and correction of cost records.
  • With configurable approval and reason code.
  • Downstream statements and collections are updated.

Sequencing | Replay

• Replay of calculations should be possible without generating duplicates.

Datalake Reporting

• Financial and operational reports:
  • Outstanding, uncollected costs.
  • Visibility into blocked items.
  • Collection method usage.

Reports can be created wihtin the label's datalake, all needed data will be supplied.

Classified cost categories:

Delivered in initial release

One-Off | Onboarding Costs

• Triggered by lifecycle events (e.g. investor account opening).
• Calculated via configured flat/percentage rules and booked as realized cost record.

Recurring Service | Platform Fees

• Scheduled charges (e.g. monthly/quarterly/yearly).
• Support proration, caps/floors, and parameterized schedule changes.

Asset Management | Advice Fees

• Percentage- or flat management/advisory fee using configured bases.
• Allow discretionary versus advisory distinctions for reporting and control.

Transaction Cost

• Charges for all order types:
  • Brokerage.
  • Banking transactions between investor account and its counter bank account.
• Minimum/maximum fees.
• Tiering.
• Transaction-level audit trail.

Delivered in upfollowing releases

Product Cost

• Process actual passed-through instrument charges:
  • TER/OCF.
  • ETF expense ratios.
  • Product performance fees.
• Associate amounts to product/ISIN and investor account.

Performance Fees

• Calculate realized performance fees:
  • Support high-water-mark logic.
  • Reset rules.
• Audit trail for tranparency, including but not limited to:
  • Record performance period.
  • Base amount.
  • Rate.
  • Updates.

Cash | Interest

• Charge interest on negative cash balance.
• Credit interest on positive balance.
• Time- and balance calculation:
  • Tiered rates.
  • Breakdown per period.

Tax | Regulatory Cost

• Withholding taxes.
• Transaction taxes (e.g. stamp duty).
• Regulatory levies.
• VAT/GST applicability on fee as realized amount.
• Link charges to originating transaction, instrument or jurisdiction.
• Show interaction with discount/rebate on statement.

Exception | Event-Driven Cost

• Investor account closure/termination.
• Asset event handling.
• Other non-standard events.

Discount | Rebate | Credit

• Cost discount.
• Loyalty/volume rebate.
• Promotional waiver.
• Cash Interest Credit as negative cost.

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4️⃣2️⃣ USER INTERFACE

Within the User Interface, Users are be able to:

• Create, view and update cost plans:
  • Configurable approval.
• Assign cost plan to products and investor accounts:
  • Configurable approval.
• Create cost record manually:
  • Configurable approval.
• View cost records with drill-down to cost category per:
  • Label.
  • Investor account.
  • Period.
• Cost record history:
  • Trigger.
  • Calculation input.
  • Rate/amount.
  • Timestamp.
  • Status.
  • User/system actor.
• Manual updates or corrections:
  • With reason code.
  • Configurable approval.
• View and (un)block cost records with pending collection:
  • Collection method per cost record if multiple options (product) available.
• View collection status, including updates and reasons.
• Create, view and update relations:
  • Configurable approval.
• Assign relation to investor account:
  • Configurable approval.

Operational settings are configurable through system parameters, including but not limited to:

• Charging method
  • Flat,
  • Percentage.
  • Balance,
  • *Transaction
• Frequency:
  • One-off.
  • Periodical.
  • Trigger.
• Trigger definition:
  • Time.
  • Order.
  • Balance threshold.
  • Lifecycle event.

4️⃣3️⃣ PERIODICITY

• Recurring fees with configurable RFC-2445 interval (e.g. weekly, monthly):
  • Proration when periods change.
• Interest calculation on cash balance:
  • Using time- and balance logic.
  • Configurable day-count and rate tiers.
• Cost by trigger event execute immediately after the triggering:
  • Sequencing rules prevent double-charging or conflicts.
• Periodical collection batches pick up uncollected cost records:
  • Selection is based on configured collection method and status.
  • Blocked cost records are excluded from collection.
  • Retry rules are applied during collection processing.

4️⃣4️⃣ DATA REQUIREMENTS

• Master data for:
  • Investor accounts.
  • Assets.
  • Products.
• Cost category catalog with:
  • Charging methods.
  • Rates.
  • Intervals.
  • Triggers.
  • Party roles.
• Cost plan catalog with:
  • Assignments to products.
  • Label defaults.
  • Overrides per investor account.
• Effective-dated cost category within each cost plan with:
  • Start date and optional end date.
  • Sequence ordering.
• Cost records per investor account with:
  • Status.
  • Block flag.
  • Reason.
  • Collection method.
  • Collection attempts.
  • Reference to originating cost trigger.
• Transaction events with amount/units and timestamp:
  • Order executions,
  • Mutations.
  • Bank transactions.
• Cash balance history:
  • Per investor account for time-based interest calculation.
• Product cost data:
  • OCF.
  • Performance fee.

4️⃣5️⃣ DATA MIGRATION

• Cost plans (bundles).
  • Cost categories.
  • Charging methods.
  • Rates.
  • Intervals.
  • Triggers.
• Products with cost plan assignment.
• Investor accounts with overriding cost plan assignment.
• Historical cash balances and transactions required for ongoing interest and fee calculation.
• Historical realized cost records for continuity or comparative reporting.

Current implementation of cost plan will be migrated to new setup.

5️⃣ BUSINESS RULES

Conditions and logic governing how Cost Management operates:

• Every cost record must be assigned to one cost category with, but not limited to:
  • Trigger.
  • Charging method.
  • Collection method.
• Capped cost category in multiple cost records within a period:
  • Rounding reconciliation is applied.
  • Cumulative booked amount does not exceed configured cap.
• All cost records are booked to the investor account as paying party.
• The label or relation connected to investor account is the receiving party.
• Cost plans are bundles of cost categories assigned to product and/or investor account:
  • Product default can be overridden by investor acccount cost plan.
  • If override ends (end date), the product default cost plan resumes.
• Only one instance of a given cost category is active per cost plan:
  • Sequential instances must start on/after the prior instance’s end date.
• Only realized costs are booked:
  • Accrual or forecast is not reported as costs until realized.
• Negative cash balances generate cash interest debit.
• Positive balances generate cash interest credit.
• Discount, Rebate, Credit:
  • Reduce gross cost.
  • Stored as separate, traceable cost record.
• Sequencing rules prevent double-charging or conflicts.:
  • replay should be possible across calculation and collection.
• Manual adjustments require:
  • Configurable approval.
  • Reason code.
  • History audit trail.
• All cost records are:
  • Timestamped.
  • Assigned to a user/system actor.
  • Accessible for audits and reporting.