Florida Regulations 65-25.002: Distribution Methodology
Current as of: 2024 | Check for updates
|
Other versions
(1) The interest accruing on client funds is the property of the individual client and must be used or conserved for the personal use or benefit of that client. Similarly, when service charges or other fees are charged to the fund, the individual clients whose monies comprise the fund must bear those charges and fees. The department, in order to offset administrative cost of maintaining the client’s individual accounts, shall assess, upon approval by the department’s Assistant Secretary for Administration, or designee, a service charge against the fund ranging from zero (0%) to a maximum not to exceed ten per cent (10%) per period on the net interest earned/fees charged for that particular period.
(2) Interest earned or fees charged will be prorated quarterly, or a more frequent proration if in the best interest of the department and approved by the department’s Assistant Secretary for Administration, or designee, and distributed to the individual client’s accounts who have had a positive balance throughout the period and meets the minimum balance criteria.
(3) The methodology for proration is as follows:
(a) Compute the earning balance for each client.
(b) List all clients with an earning balance.
(c) Sum the earning balances of all individual clients to arrive at a total earning balance.
(d) Divide the net amount for distribution, interest earned minus service charges or fees, by the total earning balance obtained in paragraph (c), above. This yields an interest/fee factor.
(e) Multiply each individual client’s earning balance by the interest/fee factor. The resulting figure is the interest to be credited or the fees to be charged to the individual client’s account. The sum of all clients’ interest or fees posted must equal the total net interest earned/fees charged for distribution. Service charges or fees charged to a client’s account cannot result in a negative balance within the account.
Rulemaking Authority Florida Statutes § 402.17(6). Law Implemented 402.17(6)(b) FS. History-New 3-19-92, Amended 9-23-92, Formerly 10-25.002.
(3) The methodology for proration is as follows:
(a) Compute the earning balance for each client.
(b) List all clients with an earning balance.
(c) Sum the earning balances of all individual clients to arrive at a total earning balance.
(d) Divide the net amount for distribution, interest earned minus service charges or fees, by the total earning balance obtained in paragraph (c), above. This yields an interest/fee factor.
(e) Multiply each individual client’s earning balance by the interest/fee factor. The resulting figure is the interest to be credited or the fees to be charged to the individual client’s account. The sum of all clients’ interest or fees posted must equal the total net interest earned/fees charged for distribution. Service charges or fees charged to a client’s account cannot result in a negative balance within the account.
Rulemaking Authority Florida Statutes § 402.17(6). Law Implemented 402.17(6)(b) FS. History-New 3-19-92, Amended 9-23-92, Formerly 10-25.002.