4.3 Process FCIS Broker Maintenance Detail

This topic provides the systematic instructions to maintain a record for a broker.

1. On Home screen, type UTDBRKMN in the text box, and click Next.
   The FCIS Broker Maintenance Detail screen is displayed.

   Figure 4-3 FCIS Broker Maintenance Detail

   
   

   
   Description of "Figure 4-3 FCIS Broker Maintenance Detail"

   
   
2. You can maintain a record in the database for each individual broker who wishes to transact with the AMC in Oracle FLEXCUBE Investor Servicing system.

   Just as with the unit holder account for an investor, the broker record in the system database is the single repository for all details concerning the broker, including details of commission processing and payment.

   In Oracle FLEXCUBE Investor Servicing, when a broker wishes to reinvest the commission earnings from any fund back into the funds of the AMC, the reinvestment is effected through a default unit holder account that functions as the broker’s investment account in the system database.

3. You can set up a broker in the system database by creating a record for the same in the FCIS Broker Maintenance Detail screen.
   • Specify all the mandatory information that is necessary to form a profile of the broker in the database.
   • Save your specifications.
4. You must ensure that the following static information sets have already been set up and entered into the system database and the required authorizations done before you begin to set up any new brokers in the system.
   • All reference data that is typically defined in the Data Entry menu item in the Fund Manager component.
   • This includes: All static information such as required entities (agents, branches, agency branches, AMCs, registrars, trustees), countries, corporation types, investor categories, occupation types, identification types, banks and their branches, mode of payment types, currencies, additional information heads, fee categories and subcategories.
   • Authorized funds with all necessary fund rules, agency branches, brokers, countries of domicile, account types, currencies and so on.

   For a detailed account of this information, refer to the Fund Manager.

   Note:

   You must also ensure that any broker types necessary for grouping the brokers have been set up and authorized.
5. When you create a record for a broker in the FCIS Broker Maintenance Detail screen, you must specify the following data as mandatory information.
   1. A unique identifier for the broker record in the database, in the Broker Code field.
   2. The name of the broker, in the Broker Name field.
   3. The AMC in which the broker is designated to transact, in the AMC ID field.
   4. The system code of any broker that is designated as the immediate higher broker in the broker hierarchy, in the Parent Broker Code field. If the broker is to be designated as the highest in the hierarchy, then specify the code that you specified in the Broker Code field.
   5. If the broker is mapped to a broker type, indicate whether the frequency of commission payment defined for the selected broker type must also be deemed applicable to the broker. Indicate this in the Use Broker Type Payment Details field check box. If you select this check box the commission frequency of the broker type chosen will be defaulted for the broker.
   6. If the broker record has been amended, then indicate the Rule Effective Date from which the changes are effective in the system. Rule Effective Date cannot be back dated. Rule Effective Date can be Future Dated and system would make that rule effective only on that date during BOD.
   7. You are allowed to amend only the last available record for which Latest Rule is 1. If a transaction exists with that broker on that day, system will not allow you to save the broker details.
   8. If the status of the broker is to be disabled, indicate this by selecting the option WEEDED in the Broker Status field.
   9. If payment of commission is to be held back for any reason for the broker, indicate this by checking the Hold Back Payment field check box.
6. You must specify the default contact address of the broker, in the Default Address field of Contact Details section.
7. In the Bank Details section, you must specify the details of at least one bank account operated by the broker, and at designate at least one of the bank accounts as the default bank account. For each bank account, all the details on the screen are mandatory information.
8. You must specify the following.
   1. The currency in which the broker would prefer to receive commission payments. Select the preferred currency in the Payment Currency field.
   2. The percentage of earned commission that is to be paid by the broker to the immediate parent broker in the broker hierarchy. Indicate this in the Hierarchy Commission Percentage field.
   3. The ID of a unit holder account in the system that will function as the broker’s account, typically for reinvestments requested by the broker. Indicate this in the Default Unit Holder ID field.
   4. The frequency at which commission processing and payment must be made for the broker, in the Payment Frequency field.
   5. The earliest future date on which the next commission payment is to be made, in the Next Payment Date field.
   6. For VAT registered brokers, indicate the applicability of VAT by checking the VAT Registered field check box in the VAT Details section. Also indicate the applicable VAT Registration Number for the broker.
9. Click Save button to save the record after you have specified all of the mandatory information required for saving a record for a new broker into the database.
   The record of the broker is saved as an unauthorized record in the system database.
10. Alternatively, after you have specified all mandatory information, you can add further data before you save the record, as follows:
    • The tax category corresponding to the broker, on the Broker Category field.
    • The designated consultant for the broker, in the Broker Consultant field.
    • If the broker is to be part of a broker type group, select the same in the Broker Type field.
    • Any applicable additional information under any of the defined heads, in the Additional Information section.

• Broker Details Tab
  This topic explains the broker details tab of FCIS Broker Maintenance Detail screen.
• Broker Contact Info Tab
  This topic explains all the details of the available modes of communication and correspondence with the broker.
• Broker Bank Details Tab
  This topic explains the details of any bank accounts operated by the broker, which are preferred for transacting with the AMC.
• Broker Legacy Details Tab
  This topic explains the broker legacy details tab of FCIS Broker Maintenance Detail screen.
• Broker Preference Tab
  This topic explains the broker preference details tab of FCIS Broker Maintenance Detail screen.
• Related Parties Tab
  This topic explains the related parties tab of FCIS Broker Maintenance Detail screen.
• Broker Add Info Tab
  This topic provides the systematic instruction to indicate the relevant information applicable to the broker under each head if the AMC has designated any additional information heads for brokers in this section.