Inforce Transactions (IFT) is a service that facilitates the exchange of information between insurance carriers and distributors for broker/dealer changes via ACATS/IPS, as well as Registered Representative and Broker Identification Number (BIN) changes that occur outside of Automated Customer Account Transfer Service (ACATS).

Overview

Inforce Transactions (IFT) is a service that facilitates the exchange of information between insurance carriers and distributors for broker/dealer changes via ACATS/IPS, as well as Registered Representative and Broker Identification Number (BIN) changes that occur outside of Automated Customer Account Transfer Service (ACATS).

Future enhancements for IFT include non-financial transactions such as address/phone changes, service feature changes and beneficiary changes, as well as financial settlement transactions such as withdrawals with money settlement capabilities.

Who Can Use This Service

Distributors including broker/dealers, independent broker/dealers, banks and trusts, as well as insurance carriers can use IFT. Participants must become members of National Securities Clearing Corporation ("NSCC") in order to utilize IFT.

Since insurance carriers cannot use ACATS directly, carriers must use IFT for the broker/dealer change process via ACATS/IPS. Distributors* must be ACATS users in order to use ACATS/IPS. To be eligible to be an ACATS user, a broker/dealer must be both a participant of The Depository Trust Company ("DTC") and a member of NSCC, while a bank or trust company must be a participant of DTC.

*Eligibility for ACATS does not automatically imply eligibility for IPS and vice-versa.

Benefits

By providing an automated, two-way flow for insurance carriers and distributors to process non-financial and post-issue transactions, IFT enables participants to:

• Increase Efficiency. Eliminate manual processing and simplify the procedures for notifying carriers of contract changes and other non-financial transaction information.
• Improve Customer Service. Enable distributors to better serve their customers and improve satisfaction. By automating the exchange of information between distributors and carriers, IFT increases the speed in which changes occur and minimizes inaccuracies.
• Streamline Processing of Insurance Products. Reduce the complexity of insurance products with a streamlined, paperless process. Since IFT facilitates communication between carriers and ACATS/IPS, the broker/dealer change process for annuities can now occur simultaneously with all other securities in a customer's brokerage account.

How the Service Works

The automated nature of IFT delivers communications efficiently between distributors and insurance carriers. Features include:

• Automated Reporting. IFT provides an automated method of sending, receiving and tracking change instructions. Reports on the status of changes are automatically delivered to carriers and distributors.
• Standard Formats. Distributors and carriers can exchange information and process account changes in a more efficient and accurate manner by using standard formats.
• A Safe, Controlled Environment. Distributors and carriers can leverage DTCC's highly reliable and secure network to transfer assets.

Using a mainframe or Internet connection, distributors can electronically transmit broker/dealer of record changes as well as registered representative and BIN changes to carriers. The carrier receives the data, reviews the information and then sends the distributor an acknowledgement, rejection or request for additional information. This automated two-way communication process between distributors and insurance carriers is similar to the IPS Licensing & Appointments service.

For More Information

For more information, please contact Insurance Services at 888-382-2721 (United States & Canada), +01 212-855-8099 (International). E-mail us at Insurance@dtcc.com.