AU2023226650A1

AU2023226650A1 - Method of managing assets

Info

Publication number: AU2023226650A1
Application number: AU2023226650A
Authority: AU
Inventors: John George
Original assignee: M G A INSURANCE BROKERS Pty Ltd
Current assignee: MGA INSURANCE BROKERS PTY Ltd
Priority date: 2007-10-31
Filing date: 2023-09-05
Publication date: 2023-09-21
Also published as: AU2021218056A1; AU2016202928A1; AU2017276180A1; AU2019283780A1

Abstract

Methods, systems and apparatus are disclosed herein for facilitating the provision of services to an entity's clients. The present invention provides for the appointment of a representative of the entity to service at least a portion of the entity's client portfolio. This appointment includes management rights to manage the at least a portion of the entity's portfolio. The present invention further provides for the appointed representative to be allowed to appoint a sub-representative in place of the representative, including assigning the management rights. Consideration received by the representative for the assignment of the management rights may partially or wholly revert to the original entity, depending on how long the representative has held the management rights.

Description

METHOD OF MANAGING ASSETS

CROSS-REFERENCE TO RELATED APPLICATIONS The present application is a Divisional of Australian Patent Application 2021218056, which in turn claims priority from Australian Provisional Patent Application 2007905976 titled METHOD OF MANAGING ASSETS, and filed on 31 October 2007. The content of each of these applications is hereby incorporated by reference in its entirety.

FIELD OF THE INVENTION This invention relates to the operation of entities managing a portfolio of clients and in particular, to those entities which appoint representatives to conduct business on their behalf.

BACKGROUND OF THE INVENTION Many companies and businesses are in the business of providing services to their clients. For example, insurance companies provide a variety of insurance options to their clients, including advice and continual education and monitoring to ensure that the client has the most appropriate form of insurance for its particular circumstance at any given time.

As laws and the variety of such insurance products and services increases, the workload on the company also increases. Furthermore, as a company's client base increases, it becomes less and less practical for the company to be able to properly manage their clients and each client's individual needs.

Accordingly, it has become commonplace for such entities to appoint one or more representatives to represent that entity and manage some of the company's clients.

During its normal course of business, a service company will often develop a strict set of guidelines to be followed in managing its clients. It is these guidelines that allow the service company to provide good service to a client and develop a good name for themselves in the industry. This name becomes a very valuable asset and any bad service, or non-adherence to the guidelines can tarnish the service company's name and reputation and seriously damage its business.

Accordingly, it is common practice to require any appointed representatives to sign a contract to bind them to following the service company's guidelines.

It is an object of the present invention to further facilitate the service company's business in providing its services to its clients.

SUMMARY OF THE INVENTION According to a first aspect of the present invention, there is provided method of facilitating the provision of services to an entity's clients, the method comprising: appointing a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including management rights to manage the at least a portion of the entity's portfolio; and allowing the appointed representative to appoint a sub-representative in place of the representative, including assigning the management rights.

The method may further comprise requiring the representative to inform the entity of the consideration for assigning the management rights.

The method may further comprise requiring the representative to inform the entity of the terms and conditions of the assignment of the management rights.

In some embodiments, the method further comprises, upon the entity being informed by the representative that it wishes to assign its management rights, allowing the entity to select a sub representative on behalf of the representative.

The method may further comprise that if the entity does not select a sub-representative within a specified time period, allowing the representative to select the sub-representative. The specified time period may be sixty days.

In some embodiments, the method further comprises requiring the representative to pay, to the entity, a portion of the consideration received by the representative from the sub-representative for the assignment of the management rights.

The method may further comprise requiring the sub-representative to enter into an agreement with the service company to become a representative of the service company.

In a second aspect of the present invention, there is provided a system for facilitating the provision of services to an entity's clients, the system comprising: appointment means to appoint a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including the right to manage the at least a portion of the entity's portfolio; and control means to allow the appointed representative to appoint a sub-representative in place of the representative, including assigning management rights to manage the at least a portion of the entity's portfolio.

The system may take a variety of forms, such as a computer software program enabling an entity to appoint a representative and control the appointment of sub-representatives. The system could also be a contract having terms which are effective to perform the system's functions under a specific legal jurisdiction.

In a third aspect of the present invention, there is provided a computer readable medium having stored thereon a contract to facilitate the provision of services to an entity's clients, the contract having terms effective to: appoint a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including management rights to manage the at least a portion of the entity's portfolio; and allow the appointed representative to appoint a sub-representative in place of the representative, including assigning the management rights.

In a fourth aspect of the present invention, there is provided a method of producing a contract comprising to facilitate the provision of services to an entity's clients, comprising: providing a contract term effective to appoint a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including management rights to manage the at least a portion of the entity's portfolio; and providing a contract term allow the appointed representative to appoint a sub-representative in place of the representative, including assigning the management rights.

In further aspects of the present invention, there are also provided computer readable media and computer program elements for directing a programmable device to perform the steps of the above methods. Yet further aspects of the present invention will be revealed throughout this specification.

A detailed description of one or more embodiments of the invention is provided below along with accompanying figures that illustrate by way of example the principles of the invention. While the invention is described in connection with such embodiments, it should be understood that the invention is not limited to any embodiment. On the contrary, the scope of the invention is limited only by the appended claims and the invention encompasses numerous alternatives, modifications and equivalents. For the purpose of example, numerous specific details are set forth in the following description in order to provide a thorough understanding of the present invention.

The present invention may be practiced according to the claims without some or all of these specific details. For the purpose of clarity, technical material that is known in the technical fields related to the invention has not been described in detail so that the present invention is not unnecessarily obscured.

BRIEF DESCRIPTION OF THE DRAWINGS An illustrative embodiment of the present invention will be discussed with reference to the accompanying drawings wherein:

FIGURE 1 depicts a system adapted to perform a method according to an embodiment of one aspect of the present invention.

DETAILED DESCRIPTION The invention will now be described with reference to a service company called ABC Pty Ltd, who is an insurance broker. ABC Pty Ltd has over time, developed a substantial portfolio of clients to which it provides insurance products, services and advice.

In conducting its business, ABC Pty Ltd develops a rigorous management policy that each of its employees servicing its clients must adhere to. This policy ensures that its clients are provided with good and consistent service.

As ABC Pty Ltd's business grows, it decides to appoint another company, XYZ Pty Ltd, to manage ABC Pty Ltd's clients in New South Wales, thereby giving to XYZ Pty Ltd, the rights to manage its portfolio of clients. As a part of this appointment, company XYZ Pty Ltd is generally required to manage the clients of ABC Pty Ltd in New South Wales in accordance with ABC Pty Ltd's policy.

Three years later, the Directors of XYZ Pty Ltd decide to dissolve the company for various reasons. According to an aspect of the present invention, company XYZ is able to assign its management rights to another company, to effectively take over the operations of XYZ Pty Ltd in New South Wales.

According to an aspect of the invention, company XYZ Pty Ltd must inform ABC Pty Ltd of its intention to cease acting as its representative, and to assign its management rights to another company.

Company ABC Pty Ltd has the option of selecting another company to be the assignee of the management rights (or sub-representative). In this case, the company selected by ABC Pty Ltd will purchase the management rights from XYZ Pty Ltd and take over its operations in New South Wales.

If, within sixty days of being informed by XYZ Pty Ltd that it wishes to assign its management rights, ABC Pty Ltd is not able to find a suitable company to take over from XYZ Pty Ltd, it is open to XYZ Pty Ltd to find an appropriate company.

If ABC Pty Ltd does not approve of the company selected by XYZ Pty Ltd, ABC Pty Ltd has the right of veto.

If no suitable company can be found, XYZ Pty Ltd will have an obligation to continue its duties as representative of ABC Pty Ltd for a period of six months. Following this ABC Pty Ltd would take on the management of the asset for no consideration.

The company selected by XYZ Pty Ltd must be one whose officers and employees are of good character and have appropriate qualifications and experience in the insurance industry to be able to properly manage the New South Wales clients of ABC Pty Ltd.

For example, company XYZ Pty Ltd selects company LMN Pty Ltd to assign its management rights to. Upon assigning the management rights to LMN Pty Ltd, LMN Pty Ltd pays XYZ Pty Ltd the sum of $40,000 in consideration of the assignment.

Company XYZ Pty Ltd pays to ABC Pty Ltd at least a portion of this consideration. The actual portion is determined as follows:

If the assignment occurs within 12 months of XYZ Pty Ltd becoming the representative of ABC Pty Ltd in New South Wales, then XYZ Pty Ltd pays to ABC Pty Ltd, 100%, or $40,000.

If the assignment occurs between one and two years, then XYZ Pty Ltd pays to ABC Pty Ltd, 75%, or $30,000.

If the assignment occurs between two and three years, then XYZ Pty Ltd pays to ABC Pty Ltd, 50%, or $15,000.

If the assignment occurs between three and four years, then XYZ Pty Ltd pays to ABC Pty Ltd, 25%, or $10,000.

If the assignment occurs after four years, then XYZ Pty Ltd pays to ABC Pty Ltd, 10%, or $4,000.

Upon LMN Pty Ltd taking up its new role as representative of ABC Pty Ltd in New South Wales to manage its client portfolio in that State, LMN Pty Ltd enters into an agreement with ABC Pty Ltd along the same terms as XYZ Pty Ltd had.

ABC Pty Ltd is able to assign its own management rights to any company or person without the prior consent of the representative.

In some embodiments, the present invention may be implemented as a computer system. Referring now to Figure 1, there is shown a computer system in accordance with an embodiment of the present invention. It comprises a central computer having a memory 10 connected to a central processing unit (CPU) 20. The CPU comprises an arithmetic and logic unit (ALU) 22, as well as a control unit program counter 26 and an input/output interface 24. Connected to the input/output interface 24 are shown a printer 30, a display 40 and an input device 50 (such as a keyboard or mouse). The system may also be connected to the Internet, enabling parties to access it from disparate locations.

The system may in some embodiments enable a person (for instance an employee of the entity ABC Pty Ltd) to select a representative from a list of known representatives. They could then select a specific portion of the entity's portfolio (from another list presented to them). The system may then automatically prepare and print an appropriate contract, for execution by both parties. Alternatively, representatives who have an existing relationship with the entity may be able to agree to become a representative for the specific portion of the entity's portfolio simply by logging into the system and accepting the contract over the Internet. The system may further monitor and control any assignment of the management rights by the representative to the sub-representative.

For example, if a representative wishes to assign the management rights, they first may be required to register an intention to assign the rights with the system, thereby informing the entity. The system could then prompt the entity to select a sub-representative. If no sub-representative is selected by the entity, the system could allow the representative to appoint their own sub-representative and inform the entity of the consideration received. The system could then calculate the proportion of that consideration which is to revert to the entity. Effectively, in such an embodiment, the system could manage a process in accordance with the method of the present invention.

As will be understood, a contract implementing the present invention is preferably drafted in accordance with requirements of the laws of the relevant jurisdiction. Such a contract will require a term (or clause) for ABC Pty Ltd to appoint the representative, XYZ Pty Ltd, to service at least a portion of ABC Pty Ltd's client portfolio. This term would serve as an appointment means in accordance with the present invention. This appointment would include the right to manage the at least a portion of the entity's portfolio.

The contract would also contain control means which allows XYZ Pty Ltd to assign the management rights to a sub-representative. Preferably, the control means also provides some restrictions, which allow ABC Pty Ltd to control the assignment of the management rights and/or obtain part or all of the consideration received by XYZ Pty Ltd in return for the management rights. An example clause in a suitable contract between ABC Pty Ltd and XYZ Pty Ltd is as follows:

9.1 The management rights ("Assets") held by XYZ Pty Ltd may not be assigned by XYZ Pty Ltd to another person unless:

(a) it first gives notice to ABC Pty Ltd of the consideration for, and terms and conditions upon which, it wishes to assign the Assets.

(b) after receipt of notice under clause 9.1(a), ABC Pty Ltd will have a period of sixty (60) days to procure a suitable assignee on behalf of XYZ Pty Ltd ("Procurement Period"). (c) if ABC Pty Ltd does not procure a suitable assignee within the Procurement Period, then XYZ Pty Ltd may assign all but not part of the Assets, to a third party for a consideration not less than that specified in the notice under clause 9.1(a) and, provided that the:

(i) the assignee and its officers and employees are of good character and have appropriate qualifications and experience within the insurance broking and sales industry; and

(ii) assignment is evidenced in writing and to the extent consistent with those terms and conditions completed within one hundred and eighty (180) days of the expiry of Procurement Period. XYZ Pty Ltd will promptly provide ABC Pty Ltd with a copy of documents evidencing the assignment.

9.2 As a condition of its consent to any assignment pursuant to clause 9.1(a), ABC Pty Ltd will require that XYZ Pty Ltd pay to ABC Pty Ltd a percentage of any consideration received by XYZ Pty Ltd from the assignee in respect of the assignment in accordance with the following scale:

(a) 100% of the consideration received if the assignment occurs within twelve months of the Commencement Date;

(b) 75% of the consideration received if the assignment occurs within one to two years of the Commencement Date; (c) 50% of the consideration received if the assignment occurs within two to three years of the Commencement Date; (d) 25% of the consideration received if the assignment occurs within three to four years of the Commencement Date; (e) 10% of the consideration received if the assignment occurs within four years or more after the Commencement Date.

9.3 In the event of an assignment in accordance with this clause 9 the assignee and ABC Pty Ltd will enter into a new Service Agreement upon the terms of the standard Service Agreement offered by ABC Pty Ltd to XYZ Pty Ltd at the time of the assignment, save that this new Service Agreement will contain a clause whereby ABC Pty Ltd may retain up to 10% of the proceeds of any future assignment of such Service Agreement by the assignee. 9.4 ABC Pty Ltd may assign its rights under this document to another person or Company without the prior consent of XYZ Pty Ltd.

The above has been described in relation to specific embodiments of the present invention. However, it will be appreciated by those skilled in the art that many variations and modifications may be made within the scope of the present invention. For example, further requirements may be imposed on a representative in selecting a sub-representative, and the values of the any consideration paid to the service provider can be modified.

Furthermore, the invention may be applied between a company and a natural person or a business, or any other form of entity, or any combination thereof and is not limited to application between companies.

It should be noted that the order of the steps of disclosed processes may be altered within the scope of the invention. The present invention can also be implemented in numerous ways, including as processes, apparatus, systems, or a computer readable media such as computer readable storage media or computer networks wherein program instructions are sent over optical or electronic communication links. For instance, a contract may be produced only in computer readable form, and may be executed simply online.

Throughout this specification and the claims that follow unless the context requires otherwise, the words 'comprise' and 'include' and variations such as 'comprising' and 'including' will be understood to imply the inclusion of a stated integer or group of integers but not the exclusion of any other integer or group of integers.

The reference to any prior art in this specification is not, and should not be taken as, an acknowledgment or any form of suggestion that such prior art forms part of the common general knowledge.

Claims

THE CLAIMS DEFINING THE INVENTION ARE AS FOLLOWS:

1. A method of facilitating the provision of services to an entity's clients, the method comprising: appointing a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including management rights to manage the at least a portion of the entity's portfolio; and allowing the appointed representative to appoint a sub-representative in place of the representative, including assigning the management rights.

2. A method as claimed in claim 1, further comprising: requiring the representative to inform the entity of any consideration for assigning the management rights.

3. A method as claimed in claim 1 or 2, further comprising: requiring the representative to inform the entity of any terms and conditions of the assignment of the management rights.

4. A method as claimed in claim 3, further comprising: upon the entity being informed by the representative that it wishes to assign its management rights, allowing the entity to select a sub-representative on behalf of the representative.

5. A method as claimed in claim 4, further comprising: if the entity does not select a sub-representative within a specified time period, allowing the representative to select the sub-representative.

6. A method as claimed in any preceding claim, further comprising: requiring the representative to pay, to the entity, a portion of any consideration received by the representative from the sub-representative for the assignment of the management rights.

7. A method as claimed in any preceding claim, further comprising: requiring the sub-representative to enter into an agreement with the service company to become a representative of the service company.

8. A system for facilitating the provision of services to an entity's clients, the system comprising: appointment means to appoint a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including the right to manage the at least a portion of the entity's portfolio; and control means to allow the appointed representative to appoint a sub-representative in place of the representative, including assigning management rights to manage the at least a portion of the entity's portfolio.

9. A system as claimed in claim 8, wherein the control means is further adapted to require the representative to inform the entity of any consideration for assigning the management rights.

10. A system as claimed in claim 8 or 9, wherein the control means is further adapted to require the representative to inform the entity of any terms and conditions of the assignment of the management rights.

11. A system as claimed in claim 10, wherein the control means is further adapted to allow the entity to select a sub-representative on behalf of the representative, upon the entity being informed by the representative that it wishes to assign its management rights.

12. A system as claimed in claim 11, wherein the control means is further adapted to allow the representative to select the sub-representative, if the entity does not select a sub-representative within a specified time period.

13. A system as claimed in any one of claims 8 to 12, wherein the control means is further adapted to require the representative to pay, to the entity, a portion of any consideration received by the representative from the sub-representative for the assignment of the management rights.

14. A system as claimed in any one of claims 8 to 13, wherein the control means is further adapted to require the sub-representative to enter into an agreement with the service company to become a representative of the service company.

15. A system as claimed in any one of claims 8 to 14, wherein the system is a contract, and the appointment means and control means are terms of the contract.

16. A computer readable medium encoded with data representing a computer program that can be used to direct a programmable device to perform the method of any one of claims 1 to 7.

17. A computer readable medium having stored thereon a contract to facilitate the provision of services to an entity's clients, the contract having terms effective to: appoint a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including management rights to manage the at least a portion of the entity's portfolio; and allow the appointed representative to appoint a sub-representative in place of the representative, including assigning the management rights.

18. A method of producing a contract to facilitate the provision of services to an entity's clients, comprising: providing a contract term effective to appoint a representative of the entity to service at least a portion of the entity's client portfolio, the appointment including management rights to manage the at least a portion of the entity's portfolio; and providing a contract term allow the appointed representative to appoint a sub-representative in place of the representative, including assigning the management rights.

Printer ALU 30 22 CPU 20

Memory 10 Input/Output Interface 24 Display 1/1

40

Control Unit Program Counter 26

Input Device 50

Figure 1