3.19.15.5 Currency of Expression Logic Applied During Transactions
This topic provides the information about currency of expression logic applied during transactions.
Case 1:If transaction base currency is not a part of the fund price currency and UH COE is not maintained
If the transaction is done in a transaction currency (TBC) other than the fund base currency and this currency is not present in the list of fund price currencies allowed for the fund, then the fund base currency will be defaulted as the unit holder’s currency of expression and for this transaction; FBC price will be applied. For this transaction FX has to be applied to convert TBC to FBC. This logic is applied to all the transaction Types, specially for Subscription transaction.
Case 2:Transaction Currency is part of the Fund Price Currency and UHCOE is not maintained
In case there is no UH COE maintained for a Fund and when an investor transacts in a transaction currency (TBC) which is one of the allowed fund price currencies (FPC) for the fund or FBC, then this transaction currency will be added as the Unit holder’s currency of expression for this fund. Transactions should not apply FX if Transaction Currency is one of the Fund's price currency or FBC.
Post the transaction authorization, the fund price currency/FBC has to be defaulted as UH preferred currencies at the UHCOE maintenance. (Post authorization user will not be able to amend the TBC hence defaulting will be post authorization).
Case 3: Transaction Currency is part of the Fund Price Currency and UHCOE is maintained
If Transaction base currency is other than the Unit holder’s currency of expression and the Unit Holder already has a UH COE for this fund, then while saving, the system will display warning message as The transaction currency is not the currency of expression for the unit holder.
UHCOE = FPC and TBC ≠ UHCOE
Note:
The bulk and light weight screen will not be impacted with new any new fields but the validations pertaining to COE will be applied (UHCOE defaulting logic if the transaction is done for the first time), for light weight screen as the transaction currency is defaulted to Fund base currency; fund base currency will be defaulted as UHCOE). If the UHCOE is maintained for a UH-Fund combination and transaction is placed through light weight screen then UHCOE will be defaulted as Transaction currency. Light weight screen will allow transaction currency to be in fund base currency (FBC) or fund price currency (FPC) for COE funds and if the transaction is done in FPC for the first time- fund price currency will be defaulted in the UTDUHCOE maintenance. Also If the UH is transacting through light weight screen subsequently and if UTDUHCOE is already maintained then the UHCOE will be defaulted as Transaction currency.