Fund Transfers (FTR) enables Distributors and Insurance Carriers to perform their fund transfer transactions in real-time. It involves two distinct transactions:
Values Inquiry enables Distributors to request and receive from Carriers the most current contract information prior to submitting a fund transfer request.
Fund Transfers automates a direct exchange or one-time reallocation of the underlying funds within a variable insurance asset. This request includes modifications to the service features implemented by the exchange.
Using their proprietary or vendor supported platforms, distributors and carriers can electronically process fund transfer transactions. The service involves the following basic steps:
A Registered Representative selects a contract on Distributor front-end.
Distributor application initiates Values Inquiry requests for the most updated contract information from the Carrier via the Values Inquiry transaction
Once the Value Inquiry is complete and the contract is refreshed, Rep submits a Fund Transfer Request. Assuming that all internal Distributor rules are met, the Distributor then transmits the fund transfer request, inclusive of service feature updates to NSCC.
NSCC validates the fund transfer request to ensure it follows all format rules then transmits valid request to carrier
Carrier conducts internal rules check (pre-batch cycle) and responds to NSCC with either a pending approval or reject status.
NSCC validates confirmation transaction and forwards to Distributor.
Next Business Day, if first confirmation was pending approval, Carrier will transmit a final confirmation with either an approval status or a reject status.
