Overview

The ACATS-Fund/SERV Interface is a system that links NSCC's Automated Customer Account Transfer Service (ACATS) with Fund/SERV® system.

ACATS automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm or bank to another, and re-registers those assets on the books of a fund company.

Fund/SERV is an automated central processing system that standardizes mutual fund order entry and account registration procedures, reducing the time and cost of processing transactions.

The ACATS-Fund/SERV Interface allows mutual funds to electronically update their account registrations when a customer account is transferred from one broker or bank to another.

The Interface is accessible via CPU-to-CPU links, or through DTCC WebDirect, a Web interface that allows participants direct access over the Internet to services provided by DTCC's subsidiaries.

Who Can Use the Service

Any interested financial organization that meets NSCC qualifications can use the service. There are several membership categories available for this service.

Benefits

ACATS-Fund/SERV offers a synergy of advantages provided by both NSCC systems:

• Improves customer service by facilitating faster, more accurate transfers of customer positions.
• Provides an automated facility for the transfer and re-registration of Fund/SERV-eligible mutual funds in a controlled, book-entry environment.
• Eliminates manual processing associated with fund re-registration.
• Automatically transmits to both delivering and receiving firms reports on the status of mutual fund registrations.
• Can reduce the potential risk and carrying costs associated with open fail liabilities.

How the Service Works

Participants initiate account transfers in ACATS by submitting completed Transfer Initiation Forms (TIFs) to their new broker or bank. Once the transfer information is entered into ACATS, NSCC assigns control numbers and sends control reports to both the delivering and receiving firms.

Delivering firms must submit asset details or reject the transfer. Assets that are submitted are reported by NSCC to the delivering and receiving firms. Receiving firms have one business day to accept or 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. Receiving firms can delete mutual funds where they have no selling agreement with the fund. Reminder notices are provided for seven days.

The ACATS-Fund/SERV Interface is then used to communicate mutual fund asset transfer information to the appropriate fund.

For broker-to-broker transfers only
On settlement date, NSCC automatically debits the delivering broker with the value of the assets being transferred and credits the receiving broker with the same amount. When the fund acknowledges, NSCC will credit the delivering broker with the value of those assets and debit a corresponding amount to the receiving broker. Throughout the process, transfers can be tracked through status reports to brokers and funds. (Note: Credits and debits are not posted to the deliverer or receiver if either party is a bank). Participant-specific defaults are available via the ACATS default registration form.

For More Information

Please contact Wealth Management Services Marketing at (212) 855-8877.