ACATS/IPS automates the change in broker/dealer of record for an annuity when clients move their accounts from one brokerage firm to another.

Overview

ACATS/IPS automates the change in broker/dealer of record for an annuity when clients move their accounts from one brokerage firm to another. The service also facilitates broker-of-record and broker identification number changes within a firm. ACATS/IPS enables distributors to include annuity assets, along with other securities, when transferring accounts and gives them automated, timely access to important information about their customers' portfolios.

Who Can Use This Service

Distributors using ACATS/IPS need to be members of the National Securities Clearing Corporation (NSCC) and The Depository Trust Company (DTC), as well as customers of DTCC's Automated Customer Account Transfer Service (ACATS), which automates and standardizes the process of transferring assets within a customer account from one brokerage firm or bank to another. Insurance carriers using ACATS/IPS are required to be NSCC members.

Benefits

With ACATS/IPS, participants can:

• Improve customer service by eliminating manual processes and automating the exchange of information between distributors and carriers.  ACATS/IPS increases the speed through which changes occur and minimizes inaccuracies.
• Streamline processing between carriers and distributors, allowing the broker/dealer change process for annuities to occur simultaneously with all other securities in a customer's brokerage account.
• Reduce the length of time that an annuity goes un-serviced by the intended broker/dealer and accurately include customer insurance holdings as assets under management.
• Secure confidential data through DTCC's Securely Managed And Reliable Technology (SMART) network, which provides centralized, end-to-end managed communications for all post-trade clearance and settlement processing.

How the Service Works

Using a mainframe or Internet connection, distributors and insurance carriers can use ACATS/IPS to electronically communicate broker/dealer change information, in addition to non-financial contract changes.  The service provides request and confirmation messaging, as well as soft reject capabilities for correctable errors.  Features include:

• Automated customer account transfer. Distributors can include customer account transfer requests for insurance products as part of an automated process already established for other financial assets, such as mutual funds. The transfer request is initiated through ACATS and facilitates the initiation and authorization for an account transfer from one broker/dealer to another. It also allows for necessary changes to beneficiary and owner information.
• Change in broker of record (REP). The REP transaction facilitates a change of agent, within the distribution firm, on a contract. Automated REP changes eliminate the high volumes of requests processed manually by insurance carriers.
• Broker identification number (BIN) change. This feature allows distributors to add or modify a customer account number attached to a carrier's contract.

For More Information

For more information, please contact Insurance Services at 1-888-382-2721.  E-mail us at Insurance@dtcc.com.