Fund Transfers (FTR) enables distributors and insurance carriers to perform their fund transfer transactions in real-time.

Overview

Fund Transfers (FTR) enables distributors and insurance carriers to perform their fund transfer transactions in real-time. It is comprised of 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 effected by the exchange.

Who Can Use the Service

Insurance carriers, broker/dealers, banks, and insurance agencies affiliated with broker/dealers or banks and their agents are eligible for the service. Participants need to be full-service members of the National Securities Clearing Corporation (NSCC).

Benefits

With FTR:

• Distributors can monitor and supervise representative initiated fund transfers to reduce risk from unethical or inappropriate rep business practices.
• Carriers process more in-good-order transactions due to upfront rule checks.
• Rep experience improves by using a single front-end to process fund transfers for multiple carriers.
• Real-time response capability provides fund transfer status to distributor.
• Update service features affected by Fund Transfer transaction.
• Support industry standard practice and standard formats adhering to the ACORD XML standard model for insurance processing XML and Web-services technology.
• 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 their proprietary or vendor supported platforms, distributors and carriers can electronically process fund-transfer transactions as illustrated by the following:

• Rep 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 Values 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 confirm was pending approval, carrier will transmit a final confirmation with either an approval status or a reject status.

For More Information

Please contact Insurance & Retirement Services at 1-888-382-2721, or email us at insurance@dtcc.com.