Implementation of the Investment Units Management Project in the FORPOST Banking Information System

Vilnius, Lithuania - 10 December 2007

Investment is rapidly becoming popular in European Union countries. Especially quick increase of investment is currently typical to new EU-member countries. For example, during the third quarter in the year 2007, in comparison with the second quarter, the number of investment participants (investment funds and enterprises of investment variable capital) in the country grew by 28 percent – in fact, the figure reached 66.4 thousands. The assets of distributed investment funds increased by 24 percent during the third quarter and reached 2.45 billion Litas.

Since investment activity is currently one of the most important spheres in Lithuanian and World banking, besides usual functions in the FORPOST banking information system there has been improved a subsystem of securities trade, which is especially significant for investors.

For investment funds accounting there have been created new products: an order of purchasing/sales/exchange of investment units and a deal, which performs actions with investment units according to the data of an order. For the purpose of distinguishing investment units from other securities, in BIS FORPOST there has been created a new type of securities called “Investment Units” (IU) (according to the classification of finance instruments (ISO 10962)); a form of currently used purchase/sales orders has correspondingly changed. Data entering, processing, and displaying in the FORPOST*Securities subsystem allows performing correct accounting of investment funds. On the FORPOST*Internet Banking page of securities portfolios overview there has been created a separate list of the investment funds belonging to a customer. Besides, in the FORPOST*Internet Banking securities trade there have been created special forms of investment funds purchase, sales, and exchange, as well as additional displaying and processing of corresponding FORPOST*Internet Banking transactions. The main advantages of new products functionality:
o entering of a new securities type – “Investment Units”
o creation of new products for IU accounting
o creation of a new form for IU accounting
o separate IU displaying in the Internet Banking (IB)
o IU servicing via IB

Further actions of the FORPOST*Securities subsystem development are planned, in order to offer the banks, using FORPOST, efficient and modern instruments of investment units management.