Fee accrual on accounts with negative holdings in fee period

• If a Contract Client Account had negative holdings in one or more instruments during the fee accrual period (period from last fee taken date (1) or if fees have not been taken on the account yet, the first system fee date (2)), fees will still accrue on the account.
• Refer to: Investors->Contracts->Contract Details Card->View Details, under the Fees and Taxes section

Clicking into ‘Accrued Interest, Fees And Taxes’ on the Current Holdings card will display that there are negative holdings on the account, fees will however still accrue and fees for the days when the instrument holdings have been negative will be ignored.

Example:

Day 1:
Instrument A: R 10 (calculate the fee accrual)
Instrument B: R 20 (calculate the fee accrual)

Day 2:
Instrument A: – R 10 (do not calculate the fee accrual)
Instrument B: R 20 (calculate the fee accrual)

Day 3:
Instrument A: R 10 (calculate the fee accrual)
Instrument B: R 20 (calculate the fee accrual)

On a fee run the accrued fees will be taken. The account will appear in a warning list at the bottom of the fee run:

The warning message alerts the administrator to the possibility that something might need to be investigated and corrected on the account.

Last Updated on 1 year ago by Debra Hart