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Rules

Rule Application

Apply a published restriction rule to a holding — when creating a transaction, or to an existing transaction.

A rule you create under Rules is a template: it defines how securities are held and released — escrow or vesting, fixed or in tranches, released automatically or on approval. Creating a rule does not restrict anything on its own.

Restriction application is the step that puts it to work: attaching a published rule to a specific quantity of a specific investor's holding, so those securities are held under that rule's schedule until they are released.

There are two moments where you can do this:

  • while creating a new transaction — restrict the securities as they land in the account; or

  • on an existing transaction — restrict securities that are already held.

Before you start

A rule can only be applied if it is published (Live) and linked to the security class you are transacting in. A rule saved as a draft, or linked only to other classes, will not be available to select.

See Rules Management for creating and publishing rules and linking them to security classes.

Apply a restriction when creating a transaction

Go to Security Classes, open the actions menu (⋮) on the security class card, and select Make new transaction.

Choose the transaction type:

Type

Description

Adjustment

Add or remove securities from an investor's account to update holdings.

Transfer

Move securities between accounts to reflect a change in ownership.

Conversion

Convert securities from one security class to another.

The transaction form then walks through four steps, shown in the progress panel on the right:

  1. Select Security Class — pre-filled with the class you started from.

  2. Select Investor Account — search for the account. The selected account shows its Available Securities and Cash Account Balance.

  3. Transaction Details — the movement itself.

  4. Apply Restriction (optional) — the toggle that attaches a rule.

Transaction Details

Field

Description

Transaction Mode

On adds securities to the account; Off removes them.

Transaction Type

The reason for the movement.

Effective Date

The date the movement takes effect. Balances in reports reflect this date.

Number of Securities

The quantity being moved.

Security Price (optional)

Price per security. Used with the quantity to calculate the total cash amount.

Total Cash Amount

The cash value of the transaction.

Transaction Description

Free-text notes, up to 200 characters.

Apply Restriction

Step 4 is optional and off by default — leave it off and the securities are unrestricted. Switch it on to hold some or all of the transaction's securities under a rule.

Select Review and confirm to check the transaction before it is committed, or Cancel to discard it.

Apply a restriction to an existing transaction

Securities that are already held can be brought under a rule without creating a new transaction.

What changes once a restriction is applied

Restricted securities remain part of the investor's holding — they are not moved or removed. What changes is how much of the holding is available.

Each security class card on the Security Classes page shows the split:

  • Total Securities — everything on issue in the class.

  • Available Securities — what can be transacted.

  • Restricted Securities — what is currently held under a rule.

Restricted quantities are excluded when Cuspy checks whether an account has enough securities for a transaction. If an account holds 100 securities with 30 restricted, a transfer of 80 is rejected — only 70 are available — while a transfer of 70 or fewer succeeds.

Release

Securities are released according to the schedule configured on the rule — in full on a date or qualifying event for a Fixed rule, or progressively for a rule In Tranches. Whether a release happens automatically or waits for approval depends on the rule's Release Approval setting. Event-based tranches always require manual review, even when the rule is set to automatic.

Cuspy can email investors and your own team whenever a restriction is released. This is switched off by default and is configured organisation-wide — see Rules Notification Settings.

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