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FIDUCIARIES

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CHAPTER 9

FIDUCIARIES

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TABLE OF CONTENTS
9

FIDUCIARIES ......................................................................................................9-1
9.1

Introduction..............................................................................................................................9-1

9.2 Parameter files..........................................................................................................................9-1

9.2.1
FD.PARAMETER............................................................................................................9-1
9.2.2
FD.ACTIVITY .................................................................................................................9-3
9.2.3
FD.ADVICES...................................................................................................................9-3
9.2.4
FD.CHARGE.PARAMETER...........................................................................................9-4
9.2.5
FD.COMMISSION.TYPE................................................................................................9-5
9.2.6
FD.CUST.DETAILS ........................................................................................................9-6
9.2.7
FD.FID.CURRENCY .......................................................................................................9-6
9.2.8
FD.TXN.CODES..............................................................................................................9-7
9.2.9
FD.CUST.VALUE ...........................................................................................................9-8
9.3 Main Files..................................................................................................................................9-9
9.3.1
FD.FID.ORDER ...............................................................................................................9-9
9.3.2
FD.POOL.GROUP .........................................................................................................9-10
9.3.3
FD.FIDUCIARY ............................................................................................................9-11
9.3.4
FD.GROUP.PAYMENT ................................................................................................9-12
9.3.5
FD.GROUP.PLACEMENT............................................................................................9-12
9.3.6
FD.GROUP.TODAY......................................................................................................9-12
9.4 Fixed / Notice fiduciary types................................................................................................9-13
9.4.1
Fixed ...............................................................................................................................9-13
9.4.1.1 Renewal .....................................................................................................................9-13
9.4.2
Call/ Notice.....................................................................................................................9-13
9.5

Confirmations.........................................................................................................................9-13

9.6

Deal slips .................................................................................................................................9-13

9.7 Workflow ................................................................................................................................9-14

9.7.1
Input a new fiduciary order.............................................................................................9-15
9.7.2
Listing fixed orders to Pool ............................................................................................9-16
9.7.3
Placements to effect........................................................................................................9-17
9.8 End of Day ..............................................................................................................................9-19
9.8.1
FD.COMPLETE.AUTHORISATION............................................................................9-19
9.8.2
FD.EOD.UNAUTH.PROCESS......................................................................................9-19
9.8.3
FD.EOD.REPLACE.ORDER.........................................................................................9-19
9.8.4
FD.EOD.NOTICE.SCHEDULES ..................................................................................9-19
9.8.5
FD.EOD.LIQ.TO.HIS ....................................................................................................9-19
9.8.6
FD.EOD.PROCESS.SCHEDULES................................................................................9-20
9.8.7
FD.EOD.STATIC.CHANGES .......................................................................................9-20
9.8.8
FD.EOD.PERFORM.ACCRUALS ................................................................................9-20
9.8.9
FD.EOD.UPDATE.CUST.VALUE................................................................................9-20
9.9 Enquiry/Reports.....................................................................................................................9-21
9.9.1
FD.RENEWAL.LIST .....................................................................................................9-21
9.9.2
FD.RENEWAL.LIST.PRINT.........................................................................................9-21
9.9.3
FD.RENEWAL.LIST.REPORT .....................................................................................9-22
9.9.4
FD.RENEWAL.TODAY................................................................................................9-22
9.9.5
FD.CUST.COMM.RATES.............................................................................................9-23

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9.9.6

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FD.DATE.COMMISSION .............................................................................................9-23

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9 FIDUCIARIES
9.1

Introduction

The Fiduciary Deposits module of GLOBUS is used to take deposit orders from clients and
place them, individually or in groups, with external institutions. A small handling commission
is charged and as there is no liability for either the deposit or placement they are recorded
below the line on the banks general ledger. The module has two main files used;
FD.FID.ORDER used by the account officer to record the clients deposit request and
FD.FIDUCIARY used by the dealer to make the placement with the external institution.

9.2

Parameter files

Fiduciaries, like other GLOBUS applications, can be configured to act more towards specific
institutions needs through parameter files that controls the workings of the application.
The following files are normally set up prior to using this module:

9.2.1 FD.PARAMETER
This is the main parameter file for Fiduciaries and allows the user to specify the different
CATEGORY codes used for each deposit type; i.e. Fixed, Call/Notice and the placement
types. The P/L codes and accrual cycles are set in this file. In addition, the default pooling
option for notice order contracts may be specified on this file as well as whether pooling to
existing placements is allowed. It also allows the length of time the file stays live post
maturity. It also allows the parameters for automatic renewal of contracts.
Commission calculations can be calculated after taking into account the values of client
holdings, you can specify whether to add assets with net or absolute values and whether to
exclude and ASSET.TYPE and SUB.ASSET.TYPE entries.
This file has only one record called SYSTEM.

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Figure 9-1 FD.PARAMETER System Record

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9.2.2 FD.ACTIVITY
This file is used to specify internal activities of the life cycle of fiduciaries and give a
language description for system enrichment purposes, the records should be in place before
instituting any deals.

Figure 9-2 FD.ACTIVITY Record

9.2.3 FD.ADVICES
This file creates an interface for a fiduciary activity (See 9.2.2) to either the delivery system
or to a deal slip. The key is made up of two parts, two letters and a 3-figure number. The first
of the two letters specifies the fiduciary type (Fixed or Notice) and the second whether the
deal is at the placement or order stage (P or O). The 3-figure number is a key on the
FD.ACTIVITY file. This means that for each activity you can issue one of four separate
advices dependant on stage and type. Instead of giving a MESSAGE.TYPE and PRINT.FORMAT
you can give the key to another record on FD.ADVICES it will use the MESSAGE.TYPE and
PRINT.FORMAT from that record.

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Figure 9-3 FD.ADVICES Record

9.2.4 FD.CHARGE.PARAMETER
For each deal category or for Fixed/Notice deals the commission charge settings can be set
here. Commission can be taken in advance or arrears; based on either the principal interest or
income.

Figure 9-4 FD.CHARGE.PARAMETER example

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9.2.5 FD.COMMISSION.TYPE
When entering an order from a client the commission basis can be specified, a standard and
specific types can be defined. The charging of Tax and the basis for the commission are
defined here. The calculation types are also defined here. They are flat, which implies the
same commission rate irrespective of the amount. The second is level, which is a flat rate
dependent on the amount. The third is band which is like level, except the charge is on a
climbing scale (e.g. 0.5% for first 100,000 then 0.3% for next 400,000 then 0.2% after that). It
also specifies whether or not the commission type calculates against the amount deposited in
the fiduciary or the customers overall business with the bank.

Figure 9-5 FD.COMMISSION.TYPE Example

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9.2.6 FD.CUST.DETAILS
The key to this file must be a valid record on the CUSTOMER file. Each client of the bank
may have specific wishes with regard to deposits placed on their behalf. Banks whom they
trust can be specified, as can those they do not wish to be used. Limits may be set on how
much can be placed with specific institutions. A record for each client dealing with
Fiduciaries should be created on FD.CUST.DETAILS.

Figure 9-6 FD.CUST.DETAILS Example

9.2.7 FD.FID.CURRENCY
It is likely that the treasury department will not make placements with other institutions for
small or odd currency amounts. This application provides a means of restricting orders to
minimum amounts, and for amounts above that minimum, the multiples that can be placed.
An override will be generated if a non-standard amount is input.

Figure 9-7 FD.FID.CURRENCY Example

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9.2.8 FD.TXN.CODES
Rather than hard-coding the TRANSACTION codes that are used for events within the
Fiduciary Deposits module, the SYSTEM record on FD.TXN.CODES allows the user to specify
which TRANSACTION codes are used for which event. This file has only 1 record called
SYSTEM and is not likely to alter once it has been created.

Figure 9-8 FD.TXN.CODES Example

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9.2.9 FD.CUST.VALUE
This is a live file that holds the last calculated value of the total assets / liabilities for each
Fiduciary customer. It is updated monthly in the end of day routine
FD.EOD.UPDATE.CUST.VALUES

Figure 9-9 FD.CUST.VALUE

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9.3

FIDUCIARIES

Main Files

9.3.1 FD.FID.ORDER
The first main file, FD.FID.ORDER, is used in dealing with clients placing Fiduciary
Deposits through you. In essence this file records the request from the client for you to place a
deposit on their behalf, until it is authorised and the corresponding FD.FIDUCIARY is made
no accounting or commissions will be calculated or posted.

Figure 9-10 FD.FID.ORDER Example

The basic deposit types can be:

Fixed
Call or Notice
One-off contracts
Automatically Renewable
Principal only
Principal plus income
Rounded amounts

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9.3.2 FD.POOL.GROUP
FD.POOL.GROUP is a file which holds the fiduciaries placed in FD.FID.ORDER in common
groupings for investment. The records have can either be open or closed, depending on
whether or not they will be accepting new order details.
The fiduciary details can be added automatically with GLOBUS placing the fiduciaries details
with a pool that matches its currency and maturity date and is open. If none can be found or
they are closed, a new one is set up. Alternatively they can be set manually.
An open pool group becomes closed when all the deals stored in it become approved. After
this no more deals can be added to the group. At this stage, a new record is written to the hold
file of FD.FIDUCIARY (see 9.3.3) corresponding to the closed group.

Figure 9-11 FD.POOL.GROUP Example

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9.3.3 FD.FIDUCIARY
The second main file is FD.FIDUCIARY, which is used for the other end of the fiduciary
agreement, placing the fiduciaries with external institutions. Where the account officer used
FD.FID.ORDER, dealers to invest the funds use FD.FIDUCIARY. Records are automatically
created on this file in hold status from records on the FD.POOL.GROUP once they are
approved. The reason for placing them on the hold file is that at this stage the
FD.FIDUCIARY records are not complete as such would not survive validation. Once the
dealer enter the details of the banks and institutions the funds are to be invested with then the
record comes of the hold file. It is at this stage that the accounting is done.

Figure 9-12 FD.FIDUCIARY Example

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9.3.4 FD.GROUP.PAYMENT
When dealing in placements that are at call or have a defined notice period, there must be
agreed dates when interest is to be settled. Banks usually have pre-defined arrangements for
each type stating at what interval interest is settled. GLOBUS also needs to be advised of
changes to the rates that affect call/notice placements made with external banks. This is
catered for in the FD.GROUP.PAYMENT table where the rates and interest details of the
banks can be stored and updated.

Figure 9-13 FD.GROUP.PAYMENT Example

9.3.5 FD.GROUP.PLACEMENT
This is a live concat file in which each record only contains a key. It is used to associate
Groups and placement banks with the corresponding FD.FID.ORDER deals that are placed
there. The key is made up of four parts separated by dots. The first part is the placement bank.
The second is the currency. The third is the number of days. And the fourth is the
FD.FID.ORDER number.
The data is held this way, as opposed to a key and a list of multivalue of keys to
FD.FID.ORDER, as it is quicker and this file is generally used in time critical end of days

9.3.6 FD.GROUP.TODAY
Like FD.GROUP.PLACEMENT file, this is a live concat file with each record only containing
a key. They key is identical to FD.GROUP.PLACEMENT, except there is no fourth part
where the Deal number is. This file is used to list all the banks whose FD.GROUP.PAYMENT
records had changed. Once the details in the FD.FID.ORDER and FD.FIDUCIARY are
updated, the record is deleted.

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9.4

FIDUCIARIES

Fixed / Notice fiduciary types

There are two distinct types of fiduciary, fixed and call/notice:

9.4.1 Fixed
Fixed fiduciaries run between two set dates and once set cannot be altered in any way.
9.4.1.1 Renewal

Due to its rigid nature, a fixed fiduciary can have renewal options set, this can be done with or
without income and can have the frequency set to run automatically. The frequency is stored
in FD.FID.ORDER in the fields RENEWAL.TYPE, RENEWAL.AMT and ROUND.RENEWAL.

9.4.2 Call/ Notice

A call / notice fiduciary has a start date (VALUE.DATE) but no set end date. The deal is
terminated using a notice period by which the customer must notify the account officer they
wish to terminate the deal. A call / notice fiduciary can also have some of its details changed
mid term, such as the amount invested, the value date of the fiduciary etc. There is no renewal
options for call/ notice fiduciaries.
9.5

Confirmations

The fiduciary module caters for conformations on two levels. Firstly it enables the sending of
conformations to be sent out and for conformations to be accepted from external banks, or if
necessary brokers. Once a deal is placed a record is raised on either FD.UNCONK.BROKERS
or FD.UNCONF.CUSTOMER. These files are live files with only a key in the record. Once
the conformation has been received the relevant deal is verified and the record on the relevant
unconfirmed file is removed. A deal can skip the entire conformation stage by setting either
CONF.BY.BROKER or CONF.BY.CUSTOMER depending on whether the deal goes through a
broker or straight to a bank. The Lists of deals unconfirmed from either fiduciary banks or
brokers are available using enquiries or through the menu system. (See sections 9.7.1.11 and
9.1.7.12).
The fiduciary module caters for confirmations both by the client placing the order and by
banks who have accepted the placement. They have no functional relevance on the system and
a deal can live its entire life span without ever being confirmed.
9.6

Deal slips

These can be generated for both the orders when taken, and the placements when effected or
other stages required by the user. More information of the creation and setting of deal slips
can be found in the System Administration Guide chapter on VERSION.

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9.7

FIDUCIARIES

Workflow

The workflow runs from the FD.FID.ORDER file to the FD.FIDUCIARY file via the
FD.POOL.GROUP file. It starts with the orders placed by the customers through an account
officer on the FD.FID.ORDER file. When the order is authorised, GLOBUS will check to see
if the order can be included in any of the currently open pool groups, i.e. does the currency or
maturity match. If there is no match or no open pool one will be created.
At the next stage the dealer would take over. It is their job to examine the pool groups,
manually alter them for specific customer needs, if required, and to approve them. Once all
the deals in a pool group are approved, the group is written as a single contract to the
FD.FIDUCIARY hold file.
Once this has been accomplished, all the dealer needs to do is to arrange its placement and
finalise the details such as rate and counterparty on the record.

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9.7.1 Input a new fiduciary order

Usually a version of FD.FID.ORDER would be used that enables the account officer to enter
a new deal or to edit an existing deal. You may wish to create extra versions for fixed,
call/notice and specialised fee type orders.

Figure 9-14 Input Fiduciary Order

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9.7.2 Listing fixed orders to Pool

Using an ENQUIRY, such as the example below, the dealer selects items in a pooled group
for placement.

Figure 9-15 Enquiry for fixed orders to pool

Figure 9-16 Input version for fixed orders to pool

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9.7.3 Placements to effect

By reviewing and accepting the orders to be placed the dealer will have created unauthorised
placements which will then need to be booked (or placed) with other financial institutions.
The example below shows a couple of notice contracts waiting to be placed.

Figure 9-17 Enquiry for Placements to effect

The next screen illustrates that the majority of the input has been created automatically from
the pool details. The dealer needs to record the rate and settlement details. When the deal is
authorised the accounting for both the order and placements is effected.

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Figure 9-18 Input version for Placements to effect

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9.8

FIDUCIARIES

End of Day

9.8.1 FD.COMPLETE.AUTHORISATION
This process will complete the authorisation process of any partially authorised placements
and orders. A fixed placement can be partially authorised when a system recovery has been
run. Some of the linked orders may be authorised, whilst others remain unauthorised together
with the placement.
9.8.2 FD.EOD.UNAUTH.PROCESS
This process checks the unauthorised FD.FID.ORDER, FD.FIDUCIARY and
FD.POOL.GROUP applications, for contracts with NAU status. The following processing
then takes place:
New contracts are moved to HLD status and any related accounting entries or limit
updates are removed.
Amendments to existing contracts are backed out together with related limit updates
and accounting entries.
9.8.3 FD.EOD.REPLACE.ORDER
If an error has been made in entering the customer details on an order which forms part of a
placement this process will adjust the order details as follows:
A new order will be created with the same amount, currency, value date and maturity but with
different customer details. The existing order will be reversed together with all accounting
and limit details, and the correct accounting and limit updates will be raised to the replacing
order.
9.8.4 FD.EOD.NOTICE.SCHEDULES
This routine runs at End of Day before the schedule processing. It is driven by the file
FD.GROUP.TODAY which holds the ids of the FD.GROUP.PAYMENT records which are
changed during the day. All placements linked to the. FD.GROUP.PAYMENT records are
processed to regenerate the next set of schedules for those contracts. The placement contracts
are obtained by selecting the file FD.GROUP.PLACEMENT.
9.8.5 FD.EOD.LIQ.TO.HIS
This process moves matured contracts to the history file. The number of days post maturity at
which this happens is defined by the user on FD.PARAMETER.

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9.8.6 FD.EOD.PROCESS.SCHEDULES
This process handles scheduled events such as maturity, principal or rate changes, interest
payments, and all associated delivery. Commission taken in arrears will be processed at this
point.
9.8.7 FD.EOD.STATIC.CHANGES
This process handles changes resulting from a change at customer or contract level to a
component of the consolidation key. See the Reporting chapter of the User Guide for an
explanation of how these are constructed, or the Application Accounting Chapter for a more
general explanation of GLOBUS consolidated accounts.
9.8.8 FD.EOD.PERFORM.ACCRUALS
This process accrues interest and commissions at a frequency defined by the user on the
FD.PARAMETER file. No accounting entries are raised as a result. The figures are produced
solely for the purpose of portfolio valuations.
9.8.9 FD.EOD.UPDATE.CUST.VALUE
This process runs monthly at the end of day and updates the records in FD.CUST.VALUE .

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9.9

FIDUCIARIES

Enquiry/Reports

Supplied as standard are the following ENQUIRY records which are used to provide in-screen
and printed reports for Fiduciaries:

9.9.1 FD.RENEWAL.LIST
List of Fiduciaries coming up for renewal, designed for on-screen viewing.

Figure 9-19 FD.RENEWAL.LIST

9.9.2 FD.RENEWAL.LIST.PRINT
The same listing but for printing.

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9.9.3 FD.RENEWAL.LIST.REPORT
A more structured report for generation during batch.

Figure 9-20 FD.RENEWAL.LIST.REPORT

9.9.4 FD.RENEWAL.TODAY
An ENQUIRY for on-screen for Renewals due today.

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9.9.5 FD.CUST.COMM.RATES
This ENQUIRY shows the commission rates applicable to each customer with a record on
FD.CUST.VALUE. The ENQUIRY is sorted by account officer.

Figure 9-21 FD.CUST.COMM.RATES

9.9.6 FD.DATE.COMMISSION
This enquiry shows the commission amounts paid between two dates.

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Index of Tables & Figures

Figure 9-1 FD.PARAMETER System Record .................................................................................................9-2
Figure 9-2 FD.ACTIVITY Record....................................................................................................................9-3
Figure 9-3 FD.ADVICES Record......................................................................................................................9-4
Figure 9-4 FD.CHARGE.PARAMETER example..........................................................................................9-4
Figure 9-5 FD.COMMISSION.TYPE Example...............................................................................................9-5
Figure 9-6 FD.CUST.DETAILS Example ........................................................................................................9-6
Figure 9-7 FD.FID.CURRENCY Example ......................................................................................................9-6
Figure 9-8 FD.TXN.CODES Example ..............................................................................................................9-7
Figure 9-9 FD.CUST.VALUE............................................................................................................................9-8
Figure 9-10 FD.FID.ORDER Example.............................................................................................................9-9
Figure 9-11 FD.POOL.GROUP Example ......................................................................................................9-10
Figure 9-12 FD.FIDUCIARY Example ..........................................................................................................9-11
Figure 9-13 FD.GROUP.PAYMENT Example..............................................................................................9-12
Figure 9-14 Input Fiduciary Order.................................................................................................................9-15
Figure 9-15 Enquiry for fixed orders to pool .................................................................................................9-16
Figure 9-16 Input version for fixed orders to pool ........................................................................................9-16
Figure 9-17 Enquiry for Placements to effect ................................................................................................9-17
Figure 9-18 Input version for Placements to effect........................................................................................9-18
Figure 9-19 FD.RENEWAL.LIST ..................................................................................................................9-21
Figure 9-20 FD.RENEWAL.LIST.REPORT .................................................................................................9-22
Figure 9-21 FD.CUST.COMM.RATES..........................................................................................................9-23

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