Pay full amount on recurring withdrawals and once off withdrawals

In the instance where a withdrawal or recurring withdrawal has been specified as an amount, the system will endeavour to pay out the amount as requested on the withdrawal and not based on the money received from the sells on the withdrawal.

• Should more cash be received from the sells, the withdrawal amount will be paid out and the remainder of the money shall stay in the cash account
• If not enough cash are received from the sells on the withdrawal, cash from the cash account are used to enable payment of the amount as requested on the withdrawal
• If not enough cash is available on the account to payout the withdrawal amount requested, the payment will be flagged and will not be included in a payment batch. The instruction will remain in the Instructions->Waiting for Payment list, where additional columns have been added to provide the reason for unavailability to be included in a payment batch.

This enables the administrator to attend to the withdrawal payment, by, for instance, cancelling the payment and manually sort out the payment by either selling more units or temporarily funding the payment by moving cash from the working portfolio.

Things to take note of:

• This only applies to amount sells, if a withdrawal has been specified in units, the amount received from the sells will be paid out.
• Should a withdrawal result in interest being allocated, the interest amount will remain in the cash account and not be paid out to the account holder. An exception here is when a 100% withdrawal is being processed on an account, where the intention is to ‘clear’ the account by taking all outstanding fees, pay out interest and not leave small amounts of cash or units remaining on the account.

Last Updated on 3 years ago by Antoinette Van Meyeren