Dealing an Instrument through different Dealers

The system will always buy units through the default dealer as set for the instrument.

It is, however possible that the default dealer for an instrument can change. In such instances it is possible that one investor bought units in one instrument, but through two (or more) different dealers. The account now has units with two different dealers in the same instrument, therefore units in two different instrument accounts on the instrument.

When the investor wants to sell, switch  or transfer out some of the units in the instrument, the instruction needs to display the units bought through the different dealers separately, with an option to select which units, from which dealer, need to be sold.

In the example below the client bought 4.5654 units in Koikoi Commodity Fund through Potter Securities Dealers and at a later stage another 400 units in Koikoi Commodity Fund, but through Jamaica Dealers.

The Holdings view will show the holdings in Koikoi Commodity Fund as a combined value:

In the case of a withdrawal, switch, adjustment, internal switch, re-balance, booked units, transfer out, distribution and fees, it is necessary to know which dealer or instrument account must be used. In such cases the holdings in the instrument Koikoi Commodity Fund will be displayed per dealer:

IMPORTANT: Just changing the default dealer of an instrument could cause problems if there are previous transactions at another dealer AND the dealer was incorrectly setup on the system. If your intention is to just change dealer then it is correct, but if it is to fix the default dealer setup, Finworks will need to fix the data as well.

Last Updated on 2 years ago by Celeste Van der Westhuizen