Investors that invest in a fund floated by an AMC may do so through a distributor organization, in which the investors have unit holder accounts. The distributor may market funds floated by different AMCs.
In such a case, the unit holders, brokers and other entities would have accounts in the distributor organization, through which they invest in funds floated by an AMC for which the distributor organization markets funds.
Oracle FLEXCUBE Investor Servicing provides the facility of setting up a distributor installation, where the entities such as unit holders, brokers and so on, would be associated with the distributor and not the AMC of the fund in which they have invested.
This chapter contains the following sections:
This section contains the following topics:
For distributor installations, the distributor is specified as the default institution at the time of installation. The distributor is set up as entity in the system, and the entity record can be viewed through the Entity Maintenance screen. The system defaults and system parameters are maintained for the distributor.
No new distributor entities can be maintained, except the distributor entity created at the time of installation. In the Entity Maintenance screen, the distributor record can be edited, but not deleted, and no new distributor records can be set up.
Note
A distributor type of installation is not available unless you have specifically requested for it.
When unit holder accounts or broker records are set up for new investors /brokers, they can be mapped to the distributor entity. The logic of generation of ID’s for unit holders will include the distributor ID and not an AMC.
When Income Distribution Setup options, standing instructions, deals, letters of intent, non-tax limits are set up for a unit holder account, they will be applicable to investments entered into at the distributor organization to which the account is mapped.
Since unit holders could subscribe to funds floated by different AMC’s at a distributor installation, transactions are accepted for unit holders into funds that are mapped to different AMC’s.
The restrictions for switch transactions (switches between different AMC’s) are not applicable in a distributor installation.
Funds floated by different AMC’s can be set up at the distributor installation. As mentioned earlier, restrictions to switching between funds of different AMC’s will not be applicable.