ProCash Plus Changing to Corestone Account Frequently Asked Questions

Transcription

1 ProCash Plus Changing to Corestone Account Frequently Asked Questions This document will prepare you to answer some of the most commonly asked questions about the conversion from ProCash Plus to Corestone Account. GENERAL... 2 PRODUCT CHANGES... 2 OPERATIONS... 4 FEES FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC NOVEMBER 2011

2 GENERAL Why is Pershing s asset management account changing? ProCash Plus was developed in 1992 to address the complex cash, transaction and payment needs of investors. These accounts have become more multi-faceted over the years. Many of the asset management accounts offered today include a checking account, debit card, ATM usage, bill payment and a rewards program. To remain competitive and better serve our customers and their investors, we are replacing the ProCash Plus product with an enhanced asset management product, Corestone Account, a more comprehensive offering that is easier to navigate and features greater flexibility. Why is the name changing to Corestone Account? With the creation of the new offering, Pershing believed a new name would better reflect the many improvements to Corestone Account. We think of Corestone in terms of a foundation that has withstood the test of time and will continue to do so. The new logo is now available to your firm, along with color and other visual design and brand guidelines. When will the new Corestone Account brochure, application and agreement be available in the Material Catalog on NetX360? These materials are now available. In addition, a page has been created on NetX360 for investment professionals featuring a full range of conversion support and promotional materials related to Corestone Account. This page is searchable by using the term corestone-assets. PRODUCT CHANGES What are some of the major benefits I can highlight to my clients? Our new asset management account has numerous benefits. The new product is simpler with more robust features, including: > BillSuite online improvements BillSuite has been enhanced to simplify and improve the investor experience. BillSuite, which includes options for electronic bill delivery, bill payment and auto pay, is available at no additional charge with every Corestone Account at all account levels. Note: BillSuite will be accessed through NetExchange Client and will only be available to those users. Investors will need to ask their investment professional for this feature. > RewardSuite enhancements RewardSuite is offered at no additional charge to enrolled Corestone Gold and Platinum account investors. Platinum level investors with RewardSuite will automatically receive upgraded service, including airline rewards with fewer restrictions, as well as concierge services online or by phone. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 2

3 > ATM upgrades Higher ATM limits are available to allow investors greater access to cash at the Gold and Platinum levels. With more than 6,500 free ATMs, the PNC Bank network provides access to cash 24 hours a day, seven days a week, with no ATM withdrawal charges. In addition, over 43,000 surcharge-free Allpoint network ATMs will be made available. As an added benefit, if investors use an ATM outside of the PNC Bank network, limited monthly ATM withdrawal fees will be reimbursed for Gold and Platinum accounts up to monthly limits. > New Gold and Platinum VISA debit card functionality New PNC Bank debit cards are easier to use with a choice of signature or personal identification number (PIN)-based functionality. Investors can obtain cash back (subject to store limits) by simply swiping their debit card and entering their PIN. Daily spending limits are higher and each card holder has his or her own limit, providing greater flexibility and control. > Added NetExchange Client functionality Investors enrolled in NetExchange Client can retrieve images of cancelled checks simply by clicking on Details in the View History section of NetExchange Client. Are there any benefits to me or my firm? With the new Corestone Account, your firm can offer a significantly enhanced asset management account. In addition, opportunities for a more robust annual account payment program and growth account program are under development and will be announced soon. What is Allpoint? Allpoint is a network of 43,000 ATMs that offers investors of participating institutions surcharge-free access to their accounts. Where are Allpoint ATMs located? Allpoint s 43,000 surcharge-free ATMs are located at retailers in all 50 states in the U.S., Puerto Rico, Mexico, Australia and the United Kingdom. Participating retailers include CVS/pharmacy, Kroger, Target and Walgreens. Investors can use the ATM locator at AllpointNetwork.com to find the nearest Allpoint ATM. How does Allpoint s ATM locator work? Investors simply type either their ZIP code or city and state into the locator AllpointNetwork.com and the locator will list the addresses of all Allpoint ATMs within 10 miles of their location, up to a maximum of 30 locations. How many times can an investor use an Allpoint ATM? Investors receive an unlimited number of surcharge-free transactions at Allpoint ATMs. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 3

4 Will investors incur a fee for using an Allpoint ATM? No. However, if a surcharge message appears during a transaction at an Allpoint ATM, investors should accept the surcharge. Per Allpoint s website, investors will either not be charged or Allpoint will refund the surcharge. Investors may incur a surcharge if they use an ATM outside the PNC Bank or Allpoint network. Does Allpoint have a mobile app? Yes. Allpoint has an app available for Android and iphone. To access the app from an Android: > Click Applications > Click Market > Type Allpoint in the search field > Click Allpoint Global Surcharge-Free ATM Network > Click Free Download To access the app from an iphone: > Click App Store > Type Allpoint in the search field > Click Allpoint Global Surcharge-Free ATM Network > Click Free > Click Install > Type username and password OPERATIONS When will this conversion take place for existing investors? What about new investors? All existing investors will convert to the new system, with new checks and debit cards (if applicable), by November 19, All new asset management accounts will now be opened as Corestone Accounts. How long do investors have to use their existing ProCash Plus checks and debit cards? Upon receipt, investors should begin using their new cards and checks as soon as possible to avoid any interruption of service. ProCash Plus check and debit card transactions will be declined after February 29, Investors should call the number on the label on the front of their new card(s) to activate them and securely dispose of their old plastic cards. They will need to update the information regarding any automatic or regular payments made through their debit cards or checks and update all online locations where card or checking information is stored to avoid rejected transactions on closed accounts. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 4

5 For existing debit card account holders, will account numbers change? The Gold and Platinum MasterCard debit cards issued by Chase will be replaced by new Gold and Platinum Visa debit cards issued by PNC Bank with new account numbers. Current checks will be replaced by checks issued by PNC Bank with new account numbers.* *See section on former Resource Checking. For existing account holders, will bill payee information need to be set up again? Yes. Existing account holders who use BillSuite will need to input their payee information on the new BillSuite. The old and new versions of BillSuite will be available on NetExchange Client for a limited time. Having both versions in one place can help the investor move payee information to the new BillSuite. The old version of BillSuite will close February 29, 2012, and no payments on that system can be made after that date.* *See section on former Resource Checking. Will investors need to access NetExchange Client to use BillSuite? Yes. Investors will need to access NetExchange Client to use BillSuite. How does a new or converting Corestone Account client add new BillSuite to his or her account? To add BillSuite to a client s account, the client s firm has to send Pershing a service center request. How can a Resource Checking client add BillSuite to his or her account? To add BillSuite, Resource Checking clients will have to close their existing accounts and open a new Corestone Account. How much time is needed for a new Corestone Account holder to be entitled for new BillSuite? Once the application has been submitted, it takes three to four business days to complete the approval process. Upon approval, new account holders can access new BillSuite the next business day. Is there a customer service telephone number for investors? For general account questions, call Customer Service at (800) , from 8:30 a.m. to 6 p.m., Monday through Friday (ET). Investors outside of the United States can reach Pershing s Customer Service Department by calling collect at (610) , during the hours mentioned above. For questions regarding debit cards, customer service is available 24 hours, seven days a week at the same number. Will the overnight process for sending materials change? The overnight process for sending materials will not change. The current fee of $20 remains on all domestic and international special handling items that involve overnight shipments. No fees will be charged to either our customers or their investors for new cards or checks that Pershing will send overnight during the conversion process. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 5

6 Should investors continue to notify Pershing s Customer Service Department of their travel plans so they can place notes on their cards? Investors should continue to notify Pershing s Customer Service Department of travel plans so they can place notes on the card accounts. Customer Service may be reached at (800) , from 8:30 a.m. to 6 p.m., Monday through Friday (ET). Investors outside of the United States can reach Pershing s Customer Service Department by calling collect at (610) , during the hours mentioned above. We are issuing a unique card number for each account holder and are using a monitoring system to alert us to potentially fraudulent transactions. Anytime investors travel, notifying us of the dates and locations will allow us to quickly resolve any alerts with minimal disruption of service. Can materials related to the conversion be issued to an investor s alternate address? Materials related to the conversion will be mailed to the current primary address shown on our system. When will the old MasterCard debit card become inactive? Corestone Account investors should discard their existing MasterCard as it will become inactive upon the activation of their new Visa card. Each new card issued for the account will have its own account number. Investors should activate all new Visa cards immediately as, once the issued Visa card(s) is activated, the MasterCard related to the account will be deactivated. After February 29, 2012, the MasterCard will be deactivated regardless of whether the new Visa card is activated. Can investors use their Visa cards for PIN-based transactions and receive cash back at registers where that option is available? Yes. Investors may use their debit cards for PIN-based transactions for cash back at participating retailers (subject to store limits). Will ATM withdrawal limits change? ATM withdrawal limits will change as follows: Account Type/Card ProCash Plus Daily ATM Limit Corestone Account Daily ATM Limit Silver Plus (Visa Silver Plus)* N/A $500 Gold (Visa Gold) $1,000 $1,500 Platinum (Visa Platinum) $1,000 $3,000 * Available in Will authorized debits and direct deposits still be accepted? Yes. Authorized debits and direct deposits will be accepted until February 29, However, investors will need to update their new checking account information, in the same way as if they were changing banks, for any debits, direct deposits and ACH transfers, as these will not be honored after February 29, 2012.* *See section on former Resource Checking. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 6

7 Will investors be able to choose either debit or credit when using the Visa card at any merchant? Yes. Investors can elect credit or debit at any merchant. Credit transactions will be verified by signature and debit transactions will take place with the entry of a PIN at the point of sale. Will expense coding still be offered? Expense coding will still be offered just as it is today at no additional charge for Gold and Platinum investors. Can investors view copies of checks online? Yes. Investors can view check copies online as long as they have access to NetExchange Client. Investors should simply click on the Details link of the check in the View History section to pull an image of the front and back of the check.* *Available in 2012 for former resource checking accounts. Can Corestone Account clients receive detailed reports on their checking account activity? Yes. Clients can receive detailed reports on their checking account activity through Expense Track SM by simply indicating in the small box titled CODE (located in the lower left corner of each check) the letter of the appropriate expense code. Expense codes can be found in the Account Transaction Register, which is mailed to clients with their checks. Will the same check styles be offered? Yes. The same check styles will be offered, including standard wallet checks, duplicate checks and business checks. Will Visa accept existing MasterCard rewards points? Since the Corestone Account RewardSuite program is operated by the same provider as the ProCash Plus RewardSuite program, investors current point accumulations will remain. New points will be added to investors accounts monthly based on spending, coinciding with the conversion of the current MasterCard to the new Visa card. Gold accounts will gain one point per dollar spent and Platinum accounts will provide 1.5 points per dollar spent. Also, in 2012, we will introduce exciting new ways for investors to accumulate points. What will investors who consolidate direct-to-fund positions on the Pershing platform experience with these account changes? Generally, direct-to-fund investors receive limited checking services from their individual mutual fund providers. These checkbooks usually come with distinct limitations: limits on the number of checks per month (three per month) and amounts that can be written ($250 or $500 minimums per check) or both. Should the investor wish to establish checking services once his or her direct positions are consolidated into a Pershing brokerage account, the investor will need to complete the required documentation to open a Corestone Account. Our new Corestone Account does not limit the number of checks written or require per check minimums. The investor will gain access to the complete list of account features respective of the Corestone Account level of his or her choice and will be subject to any applicable fees associated with the account. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 7

8 Will participants of IRA Resource Checking be part of the Corestone Account conversion? No. IRA Resource Checking accounts will not be part of the Corestone Account conversion. All aspects of the account will remain the same. Will this conversion cause a disruption to clients service? The current debit card will continue to be available for use after the conversion until February 29, 2012, unless the client activates a new Corestone Account Visa debit card or his or her ProCash Plus debit card expires before that date. Checks and ACH debits and credits presented against the ProCash Plus JPMorgan Chase checking account will be honored until February 29, If any of these items are rejected for insufficient funds, they will continue to appear in the AMA Insufficient Funds Workbasket. Will clients have to update their automated payments? Yes. Clients must update any scheduled automated payments with their new debit card or checking account information. Will this conversion affect accounts converted from Resource Checking last year? No. Accounts converted from Resource Checking to the ProCash Plus platform will not have to be converted. They will keep the same ABA and checking account numbers. However, when these clients reorder checks, they will receive Corestone Account branded checks. How will firms know which accounts are being converted? Your Account Manager will have a spreadsheet of all accounts that are converting and those that are not converting. Will changes occur to AMA Suite due to this conversion? Yes. The following changes will occur: > For the ADD screen: Firm associates will have to enter additional information for each person on the account, including information for individuals who are just additional signatories. Firm associates will be required to enter their name, Social Security number or tax identification number, MMN or code name, date of birth, and confirmation that the client should receive a debit card. Firm associates can add up to 10 individuals on a single account. There will be an option to add the BillSuite feature to the account. If the account has a mailing address or alternate address outside of the United States, the format for the address will now accommodate four lines of 32 characters so the complete address can be entered. > For the VIEW screen: Since each person on the account will now have a unique Visa debit card number, each person will have the last four digits of the debit card number listed with his or her name and information. A BillSuite Yes/No indicator will now also appear on the screen. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 8

9 Will initiation and deadline times for insufficient funds workbaskets change? No. The initiation and deadline times will remain the same for the following workbaskets: > For AMA Insufficient Funds (ProCash Plus accounts): ProCash Plus check and ACH presentments that reject for insufficient funds will continue to be initiated at 6:30 p.m and must be responded to by 1 p.m. the next business day. > For Brokerage Checking Insufficient Funds (Corestone and former Resource Checking accounts): Corestone and Resource Checking check and ACH presentments that reject for insufficient funds will continue to be initiated at 1:30 p.m. and must be responded to by 11 a.m. the next business day. Both should be reviewed each day from September 2, 2011, through February 29, Please note that it will be possible for customers to write checks against both ProCash Plus and Corestone Accounts at the same time. The same account could reject checks in both workbaskets at the same time. After February 29, 2012, the bank will no longer transmit ProCash Plus check and ACH items to Pershing. Any presentments against ProCash Plus accounts will be automatically rejected by the bank without notification to Pershing. Will a new entitlement system be needed for Corestone Account? No new entitlements will be required to access AMA Suite. However, firms may need to get a new entitlement for processing insufficient funds notifications in Work Corner. Corestone Account checks and ACH presentments rejected for insufficient funds will appear in the Brokerage Checking Insufficient Funds workbasket. To work in that queue, associates will need the ASDS role Profile Brokerage Checking NSF IBD Approver or for firms using EMS BFE 1330 is needed. What notifications are clients receiving regarding the conversion? A negative consent letter was mailed to clients in September advising them that if they do not wish to convert, they need to instruct firms to close their account by November 11, Clients will also receive statement messages from October through early Please note that it is the responsibility of each firm to advise clients of the new pricing schedule if there are any changes. When clients receive their new checks and debit cards, there will also be notifications advising clients that these are replacing their old materials. Clients will be instructed to activate their new card, destroy their old card and checks and update any automated and scheduled payments with the new checking or debit card information. Can clients enrolled in Corestone Account download information to Quicken? Yes, but to do so, the file must first be converted to a Quicken Interchange Format (QIF) file. Once the file has been created, clients can manually import the file in their account into Quicken by following this path: File > Import > QIF. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 9

10 FEES Will any fees change? Yes, some fees will change. Pershing has made minimal changes to its fee structure since At the same time, our competitors have moved toward charging annual and per-incident fees on many items. In creating our new product, we have re-assessed our fee structure. Annual fees are charged on the anniversary date of the account opening. Below is a summary of some of the fees associated with our existing program and the new Corestone Account. Note: Firms have the option of increasing fees to investors. Check with your firm on your specific fees. > Standard Annual Fees Corestone Account Tiers Current New Silver $0 (w/ $2/month low balance fee for accounts <$5,000) $25 1 Silver Plus (product available in 2012) N/A $50 Gold $75 $100 2 Platinum $125 $150 2 Corporate Gold $150 $150 Corporate Platinum $195 $ Effective July 1, 2012; $25 fee will be waived for Corestone Accounts that have $25,000 or more (average month-end closing cash sweep balances). 2 Effective February 1, 2012 and billed on anniversary date. > Stop Payment fees will increase from $10 to $25. However, Platinum investors will not pay a fee for stop payments. > Non-Sufficient Funds fees will increase from $20 to $25. Many banks charge $30 to $40 per check or debit incurred. Investors who maintain adequate account balances and those with access to available margin can avoid NFS fees altogether. > Overnight fees will remain at $20 for both domestic and international packages. Will converting Corestone Account clients be charged a $25 fee for balances below $25,000? No. This fee will not be effective until July 1, Until that time, the low balance fee will be $2 per month. Will there be charges for ATM withdrawals? Pershing will not be adding charges for transactions that occur outside the network of 6,500 PNC Bank ATM machines and over 43,000 surcharge-free Allpoint network ATMs. Many banks are introducing new charges of $2 to $3 on their customers in addition to network and bank charges that have been around for years. Total fees can add up to more than $5 per transaction. Investors will pay only the fees levied by any bank outside of the PNC Bank network. In addition, investors will receive a reimbursement of the first $5 per month of non-network ATM fees (for Gold) and the first $10 per month (for Platinum). FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 10

11 Will there still be a monthly fee for BillSuite? There will not be a monthly fee for BillSuite, as BillSuite is now included as part of every Corestone Account. BillSuite will be made available to all accounts at no additional charge. However, monthly access fees for NetExchange Client will still apply. Note: Rates and product features are subject to change in the future. You will be notified of any changes at least 30 days prior to implementation Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a subsidiary of the Bank of New York Mellon Corporation. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. FOR PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO THE PUBLIC 11