Fund Transfers

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

  Fund Transfers (FTR) is available to firms that are members of DTCC’s National Securities Clearing Corporation (NSCC). Click here for information on how to become a member of 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

  To request additional information, please click here.