Introduction to Broker Management

It is assumed that the reader of this document is familiar with the navigation around Temenos Transact product and is familiar with the Temenos Transact AA Deposits and Lending.

In the Canadian market, banks and other financial institutions sell financial products through brokers or agents, for which the banks pays them fees based on agreed terms and conditions for the product between the bank or financial institution, and the broker or agent.

The Temenos Transact solution to address the requirements of Agency Processing consists of the following:

• Setups: The CAPL.H.BROKER.FEE.PARAMETER application is created to set up the parameters for fee calculation. This application allows users to define the following:
  • Set up brokers.
  • Set up fee rates.
  • Broker accounts.
  • Fee amortization accounts.
  • Amortization frequency.
  • Categories for extracting P&L account info.

• Linkage between customer, AD: Whenever a new customer record is opened, the broker details are inputted in the customer record. This helps the system to identify the products that are sold by broker. The broker details get defaulted automatically in the AD based on the container record and broker fee is calculated accordingly.

• Fee calculation and amortization: Fee calculation is triggered off during the arrangement creation process. For AD products relevant product conditions trigger off the activity of fee calculation. Once fees are paid to the broker, the system also caters to the scenarios of:
  • Fee amortization to expense lines through the tenure of the deposit and maintenance of the amortization schedule.
  • Adjustments due to changes in agreed term of the deposit, sourced by the agent, and changes to fee calculation and recovery of excess fees by debiting the broker account for the excess fees and crediting the amortization account where the original fee was debited.

• Change in broker: A broker created in Temenos Transact needs to be attached to a CUSTOMER record for a product sold to the customer, to be eligible for product fees, the broker record can be amended and replaced by a new broker, if the bank or financial institution so wishes.

• Enquiries and reports: An enquiry is created to list the AD arrangements broker wise.