Networking is the industry standard for the streamlined exchange of customer account-level information, delivering efficiencies by securely automating a host of activity reporting including creating new accounts, account maintenance and transfers between DTCC clients such as funds and broker/dealers.
A major capability of the service accommodates Networking for Direct Accounts, which involves the exchange of investor account data held directly with a mutual fund, pooled investment or other comparable investment product. Investment offering companies have the ability to establish and maintain shareholder accounts, even with an intermediary listed on the shareholder accounts. In this way, all those involved can maintain identical customer account data.
The “Networking Levels” feature incorporated in Networking provides operational options to help intermediaries meet their particular business needs. Each Networking level defines a different set of reporting controls for investment companies and intermediaries, prescribing how shareholder servicing will be completed, and by whom.
Networking enhances account management through these additional features:
- Share-Aging File, for customer accounts that are being transferred from one financial intermediary or distribution firm to another and are migrating to/from an omnibus environment. This feature allows MF clients to pass customer account information needed to determine redemption fees, 12b-1 trail commission fees and whether money market shares are commissionable.
- Standardized Data Reporting (SDR) to support SEC Rule 22c-2, which requires intermediary firms to respond to fund company requests for shareholder-level information in omnibus accounts. This feature helps funds monitor accounts for possible market-timing and frequent-trading activities and impose redemption fees, if applicable.
- Omni/SERV®, a central location for participating intermediaries to transmit Omnibus Activity and Position files to fund companies and other investment products.
- Retirement Plan Reporting (RPR), a centralized and standardized solution for transmitting retirement plan level information among mutual fund industry participants.
- Other Complementary Services:
Fund/SERV®, Mutual Fund Daily Price and Rate file (Profile I), Profile II (dividend and security issue database), DTCC Payment aXis®.