This is a reminder that the changes outlined in Field Notice 2025-16: Reducing Not In Good Order (NIGO) Business will take effect starting 11/01/2025. These updates are designed to improve processing efficiency, reduce delays, and enhance client satisfaction by minimizing NIGO submissions.
As a quick recap:
- Revised NIGO Fees: ESI is reintroducing NIGO fees. A tiered fee structure will apply based on the severity of submission errors (see the Field Notice for details).
- Back-Office Assisted Fees: Fees will be applied when the home office assists with requests that can be completed directly in Docupace or Wealthscape.
- Grace Period: The grace period concludes October 31, 2025, to allow time to adjust to these process enhancements.
- Training & Support: Additional training and resources remain available to help you avoid these fees and ensure smooth, in-good-order submissions.
We encourage all advisors to take full advantage of Docupace and Wealthscape, as well as to pre-vet cases with the Suitability team when appropriate—both steps can prevent unnecessary fees and processing delays. Review the Frequently Asked Questions below for more detail.
If you have questions or would like additional support, please contact the ESI Operations Team at 800-344-7437.
Thank you for your continued partnership and commitment to operational excellence. Together, we can ensure an efficient, compliant, and seamless client experience.
Frequently Asked Questions – Reducing NIGO Business
1. When do the new NIGO and service fees take effect?
The new fee structure becomes effective November 1st, 2025, after the grace period ends.
Advisors who are new to ESI will also receive a 180-day grace period before fees are applied.
2. What is considered a “Not In Good Order” (NIGO) submission?
A NIGO is any submission that cannot be processed without clarification, correction, or requires reach out. It may include paperwork that is missing information, incomplete, inaccurate, or submitted incorrectly.
Examples include (but are not limited to) missing info/signatures, incorrect info, incomplete client data, illegible handwriting, a missing statement or proposal, or sending paperwork directly to a product sponsor without submitting to ESI first.
3. What are the new NIGO fees?
Fees are applied based on the severity of the issue:
- Tier 1 ($40): Missing, incomplete, handwritten (illegible) forms, erroneous information or rationale, or Proc NIGO handling of a case.
- Tier 2 ($100): Suitability issues requiring the case to be restructured to avoid rejection.
- Tier 3 ($150): More serious issues—such as the advisor not being licensed or appointed, or cases being rejected or sent prematurely to product sponsors. If a case must be rejected for suitability reasons, this fee will apply.
4. How can I help avoid NIGO fees?
You may be able to avoid nearly all fees by:
- Initiating and submitting business through Docupace will assist in gathering nearly all the required paperwork requirements. Some optional forms/disclosures may be needed. Once the paperwork is signed, you should upload any statements, proposals or legal documents.
- Pre-vetting cases with the Suitability Team before client signatures.
- Ensuring forms are typed, not handwritten, and all required fields are complete and correct.
5. Could a fee still be charged if I use Docupace, pre-vet a case, and type a form?
While the possibility of a fee still exists, the likelihood is significantly reduced by taking these precautions. A fee may still be charged if the case details come in differently than previewed, it contains incorrect/incomplete information, incorrect forms, or is missing required documents not found in Docupace such as statements, legal documents, proposals, driver’s license for signature guarantee requests, etc.
6. Is case pre-vetting required for every case?
No, simple straight forward cases likely do not warrant pre-vetting. More complex or potentially problematic cases are more appropriate for previews.
7. What is the process to pre-vet a case?
An advisor will utilize Docupace Starting Point, gather required and optional forms, upload external forms, fill out the forms completely, check for accuracy, then call the ESI 800 # to reach the Suitability team to review the draft paperwork before sending it to the client for e-signature. Conceptual case previews without completed paperwork will not receive a fee waiver.
ESI is unable to accept case previews via email or direct calls to team members. Please use the ESI 800 # for expeditious case pre-vetting.
8. Will I be charged a fee for handwriting a form?
Not necessarily. Forms that are deemed by ESI to be insufficiently legible will be charged.
9. What are “Back-Office Assisted Fees”?
These apply when Operations complete a task that could have been done directly in Docupace or Wealthscape, such as:
- Mailing physical checks instead of using Mobile Check Deposit ($25)
- Requesting the Home Office to upload forms that should be sent through Docupace ($50)
- Calling the service desk to place trades that could be done in Wealthscape ($25)
10. Why are these fees being implemented?
The goal is to reduce processing delays, improve accuracy, and encourage use of available technology tools.
Reducing NIGO rates improves efficiency for both field representatives and back-office staff, helping serve clients faster and more effectively.
11. Who can I contact with questions or for training support?
Please contact the ESI Operations Team at 800-344-7437 for questions, support, or additional training resources.
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