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Introduction to FAIS

Introduction to FAIS. Fund Agent Information System. Efficient Investment Fund Transactions. Single-Click Buying of Funds. ECSD registers the fund units to the investor’s securities account and transfers the cash and commission fees to the Fund Manager.

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Introduction to FAIS

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  1. Introduction to FAIS Fund Agent Information System Efficient Investment Fund Transactions

  2. Single-Click Buying of Funds ECSD registers the fund units to the investor’s securities account and transfers the cash and commission fees to the Fund Manager Fund Manager reports NAV to ECSD (via FAIS) ECSD calculates the quantity of fund units to the investor Investor makes payment to a special purpose cash account of ECSD EVK, ECSD – Estonian Central Securities Depository ECB – Estonian Central Bank NAV – net asset value Everything is fully automated with the help of FAIS

  3. Selling of Fund Units Selling (redemption) of fund units is a similar process, but in reverse Investor gives a redemption order to an account operator who will pass it to CSD (via FAIS) Fund Manager reports NAV to CSD (via FAIS) CSD calculates redemption amount and notifies the Fund Manager CSD requests that the Fund Manager transfers aggregated redemption payment to CSD ECSD withdraws fund units from the investor’s securities account and transfers the redemption amount to the investor’s cash account Order status will be continuously updated and reported to the relevant parties Everything is fully automated with the help of FAIS

  4. Main Objective • FAIS is designed to make buying (subscription) and selling (redemption) fund units as easy as possible: • All investors have access to all funds no matter who is the depository bank or agent • Buying and selling a fund unit should be as easy as online banking • All information must be transparent and uniform • Hassle-free selling and buying of fund units for the Fund Managers

  5. Requirements • The only requirement for inclusion is that the fund must be registered in a central securities depository (CSD) • In Estonian, most of the funds are: • UCITS funds registered in Estonian Central Securities Depository (ECSD) • using forward pricing • using T+3 for redemption and T+1 for subscription orders

  6. Features • Processing of orders • Subscription of units (buy) • Redemption of units (sell) • Simultaneous switch of units • Inheritance of units (i.e. III pillar pension funds) • The data and rules of funds • Applicable commission fees, cut-off times etc. • Collecting NAV • Reports and queries FAIS is built on existing infrastructure – all securities accounts remain in CSD

  7. User interfaces Browser-based user interface over the Internet Secure connections (HTTPS), IP restrictions, usernames and passwords XML-based API and SWIFT Certificates, IP restrictions Accepting ISO2022

  8. For more information • +372 6408 828 • info@ecsdexpert.eu

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