The Automated Customer Account Transfer Service (ACATS) is a system that automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another.
ACATS can expedite account transfers by permitting transfers to be accomplished in an automated environment. NSCC developed ACATS in conjunction with the NYSE, its Rule 412 Task Force Committee and the NASD to address the industry's need to reduce delays and inconsistencies associated with manual processing.Instruments handled by the system include equities, corporate and municipal bonds, unit investment trusts, mutual funds, options, annuities, cash and other investment products.
All eligible and qualified NSCC settling members and DTC member banks are eligible for this service. Additionally, Mutual Fund Companies are eligible to use the service but only as the contra-party to a transfer initiated by a firm (bank or broker) for the purpose of re-registering a mutual fund position to or from them directly.
ACATS facilitates accurate and timely transfer of a customer's account, with the following operational advantages to users:
Customers initiate account transfers by submitting completed TIFs to their new broker or bank (in the case of residual credits and other non-standard transfers, the delivering firm initiates the transfer). The TIF data is forwarded to NSCC, which assigns control numbers and sends control reports to both delivering and receiving brokers/banks.
Delivering brokers/banks must submit asset details or reject the transfer. Assets that are submitted are reported to the delivering and receiving firms. Receiving firms have one business day to reject the account, or request that the delivering firm make adjustments. During this one-day period, the delivering firm can add, delete or change an item. Receivers can also delete mutual funds or annuities where they don't have a selling agreement with the fund or insurance carrier.
Securities eligible for the Continuous Net Settlement (CNS) System are automatically routed into CNS, unless the delivering firm indicates otherwise. Other securities are transferred through ACATS receive-and-deliver instructions or sent to DTC, if non-CNS, DTC-eligible. Eligible mutual fund assets can be transferred through the automated ACATS-Fund/SERV interface. Eligible annuities can be transferred through the ACATS-IPS interface. Options are routed to the Options Clearing Corporation, where transfers in customer-options positions take place.
On settlement date, for non-CNS─ eligible securities, NSCC automatically debits the delivering broker with the value of the assets being transferred through ACATS and credits the receiving broker with the same amount. For assets that are delivered through NSCC's physical delivery systems, NSCC will credit the delivering broker with the value of those assets and debit a corresponding amount to the receiving broker.
|1||Firm expecting to receive a customer's account||Submits Transfer Initiation Form data.||Begins transfer process.|
|2||NSCC||Generates ACATS Transfer Transaction.||Confirms input receipt to receiving firm. System-rejected requests are reported to the receiving (submitting) firm. Delivering Firm notified of transfer request.|
Submits Asset Input
Customer Account Transfer Reject
NOTE: Responses should be submitted within one business day to prevent account from entering a Request-Past status.
NSCC generates Asset Transaction Report listing assets. Deliverer reviews for accuracy.
NSCC generates Transfer Transaction Report with rejects.
|4||Receiving Firm||If the account was rejected with a 24-hour Reject Code, the receiver should correct by submitting an adjusted TIF. NOTE: TIFs not corrected within the 24-hour period will cause the account to reject.||NSCC generates Transfer Transaction Report with TIF adjustments.|
Reviews Asset Transaction Report within one business day.
Transfer settles three business days later.
Transfer settles two business days later.
Delivering firm submits Asset Input or Adjustment and NSCC indicates pending adjustment on Transfer Transaction Report and generates Asset Transaction Report with adjustments highlighted.
Transfer settles two business days later.
NSCC generates Transfer Transaction Report with reject.
Generates Settlement Report and
Option Transfer Report
Lists all assets scheduled to settle on designated settlement date.
Lists all option assets scheduled to move through OCC's Option Transfer Service on settlement date.
Reports assets settling on CNS Projection Report
and/or generates Receive and Deliver Instruction
and/or a Deliver Order file to DTC for Depository-eligible securities
and/or generates a file of mutual fund and annuity re-registration instructions for eligible Fund/SERV and IPS assets and a file to OCC of options that are being transferred.
Book-entry delivery via NSCC's CNS System.
Delivery is made outside of CNS.
Fund/SERV and IPS are sent re-registration instructions and OCC is sent options-transfer instructions.
Please call Relationship Management at (800) 422-0582.
Last updated December 22, 2009