Why Supplier Accounts

Before supplier accounts we had ONE bulk account per instrument and one list of Statement Balances. You duplicated your instruments if Retirement Fund A and Retirement fund B invested in for example Instrument XYZ.

So you then created:

• Instrument XYZ (Retirement fund A), and
• Instrument XYZ (Retirement fund B)

Now we created something called Supplier accounts, because you could have:

• multiple dealers (you can buy Instrument XZY at Stockbroker 1 and at Stockbroker 2)
• multiple custodian owners (the entity in who’s name you buy e.g your retirement fund)

You now only need to load “Instrument XYZ” and we then create a Supplier account (or you can call it a BULK account) for each Dealer/Custodian/Instrument relationship. In short, we need to track where you bought your units (dealer) and in who’s name (custodian).

In the example above you will have 4 supplier accounts for Instrument XYZ:

• 1: Retirement fund A – Stockbroker 1
• 2: Retirement fund A – Stockbroker 2
• 3: Retirement fund B – Stockbroker 1
• 4: Retirement fund B – Stockbroker 2

Each of these accounts will get their own Statement Balance (or if you want Statement) from the Dealer and we need to track in which of these account investors units were bought, so that if the investor sells we can sell the correct bulk units at the correct dealer.

Last Updated on 6 years ago by Tinus Burger