4.3.1 Broker Details Tab

This topic explains the broker details tab of FCIS Broker Maintenance Detail screen.

1. On FCIS Broker Maintenance Detail screen, click Broker Details tab.
   The Broker Details are displayed.

   Figure 4-4 FCIS Broker Maintenance Detail_Broker Details Tab

   
   

   
   Description of "Figure 4-4 FCIS Broker Maintenance Detail_Broker Details Tab"

   
   
2. On the Broker Details tab, specify the fields.
   For more information on fields, refer to the field description table.

   Table 4-2 Broker Details - Field Description

   Field	Description
   Broker Code	Alphanumeric; 12 Characters; Mandatory Specify an alphanumeric code that would uniquely identify the record of the broker in the system. This would be the identifier that you would use whenever you query the database for any details regarding the broker.
   Broker Name	Alphanumeric; 105 Characters; Mandatory Specify the name of the broker for whom you are setting up a record in this screen.
   Parent Broker Code	Alphanumeric; 9 Characters; Mandatory Select the broker code of the immediate higher broker to which this broker must report from the option list. When you select a parent broker in this field, you indicate that the broker whose record you are creating now is a sub-broker of an authorized broker already existing in the system. It also means that the broker is part of an existing hierarchy structure. Note: If it is necessary to set up the broker as the highest broker in a new hierarchy, specify the unique code that you entered for this broker in the Broker Code field in the screen. If the broker code and the parent broker code are identical for a broker, then it means that the broker is the highest broker in the hierarchy, and has no parent broker. You can change the parent broker code for a particular broker. The system changes the hierarchy and the level number of the broker and all its sub brokers based on the new parent broker code and level during authorization. The broker commission processing considers the latest broker maintenance for commission sharing.
   Parent Broker Name	Display When you select the parent broker for the broker in this field, the name of the selected parent broker is displayed in the Parent Broker Name field. Note: Also, you must authorize a broker before you select the broker as a parent broker for another broker.
   Replicate Parent Details	Optional The system defaults the parent broker details, if Replicate Parent Details option is selected. Even if you input the broker details it will be overridden by the parent broker details only for the fields mentioned in the template. During authorization of broker amendment, the system replicates the fields specified in the template of the amended broker to all the sub-brokers for whom the Replicate Parent Details option is selected. If Template ID is given and the Replicate Parent Details is selected as Yes, then click Enrich button to default the parent broker details based on auto replication preference maintenance.
   Template ID	Alphanumeric; 6 Characters; Optional Specify the Template ID.
   Broker Category	Mandatory Select the tax category applicable for the broker from the drop-down list. The list displays the following values: Individual Corporate
   Broker Type	Alphanumeric; 6 Characters; Optional Select the broker type to be associated with the broker from the list. You can indicate that the frequency of payment that has been designated for the selected broker type must also apply to the broker, by checking the Use Broker Type Payment Details check box.
   Type Description	Alphanumeric; 255 Characters; Optional Provide a description of the broker type.
   Broker Base Currency	Alphanumeric; 3 Characters; Mandatory Specify the Broker Base Currency. The adjoining option list displays valid broker base currencies maintained in the system. You can choose the appropriate one.
   Rule Effective Date	Date Format; Mandatory Specify the date from which the broker is effective in the system. The rule effective date must be equal to or greater than the application date. By default, system will display the application date as the rule effective date.
   Broker Status	Alphanumeric; 1 Character; Mandatory Specify the status of the broker. If the broker is to be disabled in the system, select the option WEEDED from the list.
   Status Description	Display The system displays the description for the selected broker status.
   Broker Consultant	Alphanumeric; 40 Characters; Optional Specify the name of the consultant preferred by the broker.
   AMC	Alphanumeric; 12 Characters; Mandatory Select the AMC in which the broker wishes to transact.
   AMC Description	Display The system displays the description for the selected AMC ID.
   Level Number	Display Only When you specify the code and the parent broker for the new broker, the level number of the new broker in the broker hierarchy structure is displayed here by the system. If you specified the code of the new broker itself as the parent broker code, (i.e., the new broker has no parent broker) the level number displayed is zero, and so on.
   Use Broker Type Payment Details	Optional If you have designated the new broker to be identified under a selected broker type in the system, then you can designate that the frequency of payment identified for the broker type be applicable by default to the new broker too. To do so, check this box.
   Hold Back Payment	Mandatory Select Yes from drop-down list to indicate that commission payments to the new broker must be held back and not paid out. The commission payment will be held back and not paid out until the tax liability of the broker falls below the commission earned, for a tax year.
   Held From	Date Format; Optional Select Held From date from the adjoining calendar.
   Overridden Percent	Numeric; 15 Characters; Optional Specify the overridden percentage. For the purpose of computing and deducting withholding tax, the tax slabs (if any) maintained in the With Holding Tax Input for the broker category under which the broker is placed, are identified. However, you can specify a fixed percentage in this field that will override any slab details maintained for the broker category. Therefore, the percentage that you specify here is used to compute tax, and supersedes any WHT slabs maintained in the With Holding Tax Input screen.
   Broker Disable Status	Mandatory Select the broker status from the drop-down list. Select Yes to indicate that the broker whose record you are creating is disabled. If the broker disable status is selected as Yes, then the Broker is marked as Pending Closure on save. The broker needs to be authorized to incorporate the status change of the broker and then it will not be available for the new business. Also the system will check if the broker is associated with any active UH accounts, SI, or policy. If Yes, the system displays the following message Broker has pending transactions/business in the system and broker status is marked as Pending closure. While the Broker is in Pending Status, any commission earned from debit orders is paid, but the Broker Code is not available for any new business. A broker whose record in the system is disabled cannot be designated for an investor or for any transactions, and commission payments for the broker will also not be processed or paid out. Note: You can re-enable the disabled broker if the broker is disabled by mistake.
   Employer ID Number	Alphanumeric; 50 Characters; Optional Specify the Employer ID Number.
   Tax ID	Alphanumeric; 50 Characters; Optional Specify the tax identification.
   Tax Circle	Alphanumeric; 15 Characters; Optional Select the tax circle country from the adjoining option list.
   Tax Certificate Effective Date	Date Format; Optional Specify the date from which the tax certificate is effective.
   Tax Certificate Expiry Date	Date Format; Optional Specify the expiry date of the tax certificate.
   FATCA Sponsor Type	Optional Select the FATCA sponsor type from the adjoining drop down list. The values are: Sponsoring Entity Sponsored Entity If you select Sponsoring Entity, you need to specify the sponsoring entity type and sponsoring entity ID. If you select Sponsored Entity, you need not to specify the sponsoring entity type and sponsoring entity ID.
   Sponsoring Entity Type	Numeric; 1 Character; Optional Specify the sponsoring entity type. You can also select the valid entity type from the adjoining option list.
   GIIN Issue Date	Date Format; Optional Specify the GIIN issue date. The GIIN issue date cannot be greater than the application date.
   GIIN Verified Flag	Display System displays the GIIN verified flag based on the GIIN. In case the GIIN is entered and not chosen from the list, the flag GIIN verified will be set to NO. If the GIIN is chosen from the list of values, then GIIN verified flag will be set to YES.
   Global Intermediary Identification Number (GIIN)	Alphanumeric; 30 Characters; Optional Specify the Global Intermediary Identification Number.
   US Indicia Available	Display The system defaults US Indicia Available as Yes, if any of the below mentioned values are True: The nationality is US The country of birth is US The country of domicile is US The country of incorporation is US The country of correspondence or alternate address is US The country code of the telephone number is 01 The country code of the bank branch address is US
   FATCA Status	Display If the US Indicia Available is True, then the FATCA Status value depends on the FATCA Maintenance. If the US Indicia Available is false, then the FATCA Status displays Not Applicable. If the Broker is compliant, then FATCA Status displays Compliant. If the Broker is non-compliant, then FATCA Status displays Recalcitrant. If the Broker is yet to be classified, then FATCA Status displays Pending classification.
   FATCA Classification	Display The system displays the FATCA classification type.
   Description	Display The system displays the description of FATCA classification.
   Sponsoring Entity ID	Alphanumeric; 12 Characters; Optional Specify the sponsoring entity for the FATCA entity type. You can also select the valid entity ID from the adjoining option list.
   GIIN Expiry Date	Date Format; Optional Specify the GIIN Expiry Date. The GIIN expiry date cannot be lesser than the GIIN issue date.
   Individual	The section has the following fields.
   Nationality	Alphanumeric; 3 Characters; Optional Select the nationality from the adjoining option list.
   Description	Display The system displays the description for the selected nationality.
   Country of Domicile	Alphanumeric; 3 Characters; Optional Select the country of domicile from the adjoining option list.
   Description	Display The system displays the description for the selected country of domicile.
   Country of Birth	Alphanumeric; 3 Characters; Optional Select the country of birth from the adjoining option list.
   Description	Display The system displays the description for the selected country of birth.
   Corporate	The section has the following fields.
   Incorporation Country	Alphanumeric; 3 Characters; Optional Select the Incorporation country from the adjoining option list.
   Description	Display The system displays the description for the selected country of incorporation.
   Payment Details	The section has the following fields.
   Payment Details	In this section, specify the parameters that will govern the processing and payment of commission due the broker. Also, if the broker is VAT registered, indicate the corresponding registration number. You can access this section through the Payment Details link.
   Hierarchy Commission Percentage	Numeric; 5 Characters; Mandatory Specify the percentage of the commission received that is to be paid by the broker to the immediate parent broker level. For a given broker hierarchy structure, the commissions received at any level may be shared between the brokers of the hierarchy in a pre-defined manner. For more details, refer to the Table 4-3.
   Payment Frequency	Optional From the drop-down list, indicate the frequency according to which commission payments must be made to the broker. The list displays the following values: Weekly Monthly Quarterly Half -Yearly Yearly Fortnightly If you have designated the broker to be identified under a selected Broker Type, and also checked the Use Broker Type Payment Details check box in this screen, the frequency of payment identified for the selected broker type is also applicable by default for the broker. This frequency is displayed here.
   Next Payment Date	Date Format; Optional Specify the earliest future date on which the next commission payment should be made to the broker. Do not specify a designated system holiday in this field. The commissions will be processed based on the new payment date and the frequency specified will be used to make periodic payments.
   Last Payment Date	Display The most recent date on which a commission payment was made to this broker is displayed here. When you are creating a new record for a broker in this screen, this field is empty.
   Default Unit Holder ID	Alphanumeric; 12 Characters; Optional Select the ID of the unit holder account that is designated to be used as the default account in the system for the broker. This is typically so when the broker prefers that a unit holder receives the proceeds of the commission payments. Whenever the broker opts for reinvestment of earned commission back into the funds of the AMC, (according to the income distribution setup options defined for the broker) the reinvestment will be effected through the unit holder ID you specify here. You can query for unit holder ID by clicking Find UH button.
   VAT Details	The section has the following fields.
   VAT Registered	Mandatory Select Yes option from the drop-down list to indicate that the broker is a VAT Registered broker.
   VAT Registration No.	Alphanumeric; 15 Characters; Optional If the broker is a VAT registered broker, specify the broker’s VAT Registration Number.
   VAT Registration Date	Date Format; Optional Select the date of VAT registration from the adjoining calendar. VAT Registration date is mandatory if the broker is a VAT registered broker. While processing broker commission, the system computes the VAT amount only if the transaction date is on or after the VAT registration date of the broker. During periodic loan accrual processing, system computes the VAT amount only if the accrual date is on or after the VAT registration date maintained at the broker level.
   VAT Expiry Date	Date Format; Optional Select VAT expiry date from the adjoining calendar.

   Four-Tier Broker Setup Example

   To understand how earned commission would be shared in a hierarchy structure, let us consider an example.

   Table 4-3 Four-Tier Broker Setup Example

   Broker	Receivable (Currency Units)	Payable (Currency Units)	Net Receivable (Currency Units)
   Level 3 Broker	1000	500	500
   Level 2 broker	500	250	250
   Level 1 broker	250	150	100
   Level 0 broker	150	0	150

   Consider a Four-Tier Broker Setup as given in the table. Let us suppose that the transaction commission processed of a particular subscription transaction must be split amongst the brokers in the following manner.

   The Top-Level (Level Zero) parent broker receives 10%

   The Level 1 parent broker receives 15%

   The Level 2 parent broker receives 25%

   The Level 3 parent broker receives 50%

   Such a setup entails that a subscription transaction commission of 1000 currency units (initiated by Level 4 broker) must be split amongst this broker hierarchy as follows:

   The Top-Level (Level Zero) parent broker receives 100 currency units.

   The Level 1 parent broker receives 150 currency units.

   The Level 2 parent broker receives 250 currency units.

   The Level 3 parent broker receives 500 currency units.

   Therefore, this must be the pattern of receivables that must arise from this commission setup, for this hierarchy.

   In Oracle FLEXCUBE Investor Servicing, to enable this kind of a pattern, the following setup (called the payables method) is used.

   Set the commission percentage of Top-Level (Level Zero) parent broker to 0% (i.e., this broker pays nothing to the immediate parent broker as the broker is a level zero broker)

   Level 1 parent broker: 60% (Pays 60% of commission received to immediate parent broker)

   Level 2 parent broker: 50% (Pays 50% of commission received to immediate parent broker)

   Level 3 parent broker: 50% (Pays 50% of commission proceeds to immediate parent broker i.e. Level 2)

   As a result of the above setup for the case mentioned above, (subscription commission of 1000 currency units) the split will be as given in the table.