ACATS-Fund/SERV^®

The ACATS-Fund/SERV^® is a dynamic system that is becoming increasingly important to the mutual funds industry. Recently enhanced, it automates and standardizes transfers and re-registrations of the assets in a customer’s mutual fund account. These transfers can be between broker/dealers or other distribution firms, or between firms and fund companies.

• About

  ACATS-Fund/SERV combines the benefits of two NSCC services. ACATS (the Customer Account Transfer Service) automates procedures for transferring assets. Fund/SERV® is the industry standard for processing mutual fund transactions through standardized formats and a centralized hub.

  Both ACATS and Fund/SERV® are accessible via mainframe over DTCC’s SMART connection or through MyDTCC Web Portal that gives 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.

• Benefits

  • 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

  Customers generally initiate account transfers by submitting completed Transfer Initiation Forms (TIFs) to the new receiving firm. The new receiving firm enters the relevant transfer information into ACATS. 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. Asset details that are submitted by the delivering firm 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, delivering firms can add, delete or change an item. Receiving firms can delete mutual funds when they have no selling agreement with the fund. ACATS-Fund/SERV is then used to communicate mutual fund asset transfer information to the appropriate fund.

  Firm-to-Firm Transfer:

  

  
  

  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.

  Fund-to-Firm Transfer:

  

• For More Information

  Please contact Client Support at 1-212-855-8877 or by email at [email protected].

  
  
  

  ACATS-Fund/SERV is a service offering of National Securities Clearing Corporation (NSCC), a wholly-owned DTCC subsidiary. The Service is governed by applicable Rules, Procedures, and Service Guides of NSCC, which contain the full terms, conditions, and limitations applicable to this Service. The Service description herein is for informational purposes only, and NSCC reserves the right to make modifications.