Transfer Agent for Investment Funds management (AT FI)
Execution of financial transactions
Conversion of financial transactions constitutes a particularly controlled process as far as transfer agent services provided by Finat are concerned. All necessary information regarding each financial transaction, which make it possible to control the correctness of transaction conversion, are stored in the system.
In the case of each and every transaction, the following information is stored:
- amount or units indicated by the customer while placing an order,
- amount and units registered in the case of a given transaction,
- value of tax and fees,
- indication of schedules of fees used to calculate the fee,
- precise information on the manner and terms of outlaying the tax in the case of a given transaction,
- information about the value of the so-called "retained profit",
- indication of the bank statement item related to the transaction,
- transfer which was generated on the basis of the transaction.
Moreover, information about all purchases are registered in the system in connection with a given repurchase, which facilitates to a large extent the control of tax calculation. The system makes it also possible to access information about fees or discounts which were taken into account during the calculation of charges for the transaction.
Execution of non-financial orders
The AT FI system executes non-financial orders placed by funds' Unitholders or authorised persons. As far as the execution of non-financial orders is concerned, the following orders are available:
- designation and change of attorneys, representatives, statutory representatives – a registration is made and a entitlement control is conducted also as far as limitations related
to operation types are concerned, e.g. amount limits, - designation and cancellation of persons authorised to repurchase units after unitholder's death,
- locking in and out (including security locks, e.g. the pledge),
- change in personal data,
- introduction of payment instructions relating to the register or a given order,
- introduction and change of the systematic repurchase of units disposition,
- change of PIN codes and transaction authentication number card management,
- changes resulting from fees negotiated with the customer,
- in the case of allocated products, it is also possible to change the distribution of contributions.
Other documents sent by Customers are also registered in the system. The type of document is marked, e.g. complaint, judicial document, etc. and, afterwards, the document is attached to the register. such documents are visible from the register's level together with their graphic image.
Handling correspondence sent to funds' unitholders
We have a flexible system for handling correspondence which allows for creating definitions of letters of different content, with data included in the content of letters and ways of sending letters (regular mail, registered mail, registered letter with advice of delivery).
Letters are generated automatically in the case of events defined by the Investment Fund Company (e.g. execution of purchase transaction results in the generation of a letter which constitutes a confirmation of transaction execution), with generation and dispatch dates. Furthermore, the system allows also for automatic generation of dispatch lists for registered mail.
Before dispatch, a control of letters is performed, during which the form of each letter, the correctness of information sent to the Customer and execution date are checked. The system makes it possible to introduce groups of recipients of selected letters, e.g. within the framework of marketing campaigns.
All letters which have been sent or are waiting to be sent can be reviewed in the transfer agent system, e.g. in the context of reviewing register data or unitholder data.
Additionally, postal returns are registered in the transfer agent system in order to verify the effectiveness of the correspondence.
Handling fees management
The system allows for parametrisation of handling fees on numerous levels.
Currently, the parametrisation of fees is performed on the level of:
- fund,
- product,
- currency,
- unit category,
- transaction type,
- distributor or Customer Service Point.
A fee can be defined as a fixed sum or as percentage. The choice of fees may be defined according to thresholds which depend e.g. on the balance of register or registers (accumulation), purchase balance, number of years as unitholder, etc.
As far as negotiated fees are concerned, fees negotiated by Customers can be registered separately on the level of a register, transaction or Unitholder.
After the transaction is processed, the system makes it possible to review the balance taken into account during the process of charging the handling fee.
Tax settlements on behalf of funds
For each fund, a definition of outlaying and collecting capital gains tax is introduced. Currently, the following outlaying methods are implemented: FIFO, LIFO, HIFO.
On the basis of the introduced definition, we calculate the value of tax for each repurchase or conversion transaction.
The system also allows for automatic calculation and generation of PIT forms, which are afterwards conveyed on a monthly basis to appropriate Revenue Office.
The transfer agent system includes thoroughly elaborated rules for writing and calculating the tax base in the case of transactions consisting in transfers and exchanges within the framework of different sub-funds owned by one umbrella fund.
Reports do GIFI
Within the framework of the Transfer Agent service, Finat is able to keep a register of transactions reported to the General Inspector of Financial Information under the provisions of the Act on Prevention of Money Laundering Practices and Financing of Terrorism.
The TA IF system comprises a separate module which allows for conducting analyses and generating reports for the General Inspector of Financial Information.
Within the framework of keeping the GIFI register, Finat elaborates the following reports for GIFI:
• Report on Transactions Exceeding the Threshold,
• Report on Related Transactions,
• Report on Adjusted Transactions,
• Report on Suspicious Transactions.
First of the above-mentioned reports are elaborated according to the provisions of the Act.
The Report on Suspicious Transactions is prepared on the basis of rules elaborated by Finat and founded on experiences and information acquired by Finat's employees during training courses and conferences.
If an Investment fund Company finds it necessary to use a different set of rules for finding suspicious transactions, Finat is ready to implement new rules consistent with the Investment Fund Company's internal regulations.
Unitholder service via telephone
The hotline is operated by an automatic IVR system which makes it possible to place orders and receive information concerning for example: register balance, up-to-date valuation of units.
The structure of the automatic system for placing orders is parametrical and is modified according to the Investment Fund Company's needs. All conversations conducted by our consultants are recorded, and it is possible to listen to those conversations by means of the transfer agent system from the level of a given register or unitholder.