04_it-retail-cross-border-fund-model-.doc

Intermediary directly or trough financial planner

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the form of commissions paid by the fund or the Investors. Intermediary (directly or trough Financial Planner) Cash correspondent A fin. institution that makes or receives payments on behalf of a fund. Foreign Custodian bank Page 4 of 8
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3 Market participants and their relations Player 1 Player 2 Relationship Investor Fund Company Subscription form based on Fund Prospectus Investor Intermediary Custody account for funds shares (optional- not mandatory) Fund Company Custodian Bank Custodian Bank agreement and accounts for order settlement Fund Company Correspondent Bank Correspondent agreement Fund Company Intermediary Distribution agreement Correspondent Bank Intermediary SLA for correspondent S. Page 5 of 8 Investors Investors Investors Investors Financial promoter Intermediary 1 Intermediary 2 Intermediary 3 Intermediary 4 Correspond ent Bank CTA 1 CTA 2 CTA 3 Custodian Bank Custodian Bank Custodian Bank fax file intern et SWIF T FAX FILE Subscription’s Application form Redemption’s Application form Switch’s Application Form SWIFT Confirmation Letters
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4 Subscription 1. Investor subscribes the application form (subscription order) receipt by the Intermediary. 2. Intermediary send the subscription orders and the related amounts to Correspondent Bank. (Investor could also send mean of payment directly to Correspondent bank) 3. Correspondent Bank collects the subscription orders and sends them to Transfer Agent (nominee or nominative structure depends on Correspondent agreement rules) 4. Transfer Agent confirms to Correspondent Bank all the details of the orders (eg : amount, price, number of shares.) 5. Correspondent Bank sends the related amounts to Custodian Bank. 6. Correspondent Bank sends the Subscription Confirmation Letter to Intermediary and Investor. 7. Custodian Bank updates the liquidity of fund account based on subscription instructions Gross amount/unit is used in step : 1,2,6, Net amount/unit is used is step : 3,4,5,6,7 Page 6 of 8 Custodian Bank (Cross Border) Correspondent Bank 6 Investor Intermediary 1 5 3 4 Transfer Agent (Cross Border) 2
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5 Switch 1. Investor subscribes the application form (switch) receipt by the Intermediary.
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  • Summer '17
  • allen dasu
  • ........., custodian bank

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