Disbursements and Deposits

Transcription

1 Disbursements and Deposits Overview Disbursements can be drawn against client accounts via Check, Journal, ACH Payment and/or Wire Transfer. (Note: An ACH Payment is an electronic transfer of funds between financial institutions using the Automated Clearing House system that requires one day to process. A wire transfer, also called Fed Wire, is an electronic transfer of funds between financial institutions using the Federal Reserve System.) Deposits can be made using the same methods. Review this policy for pertinent information regarding disbursements and deposits. Contents Responsibilities and Cut-Off Times 2 ACH Transactions 3 Systematic ACH Transaction Setup 3 ACH On-Demand 4 Dividends/Interest ACH Setup 4 Direct Deposit/Bill Pay 5 ACH Changes 6 Clearing ACH Transactions and Funds Availability 7 ACH Deletions 8 Check Disbursement 9 Check Disbursement Procedures 9 Types of Disbursements and Required Documentation 10 Stop Payments on Checks Issued 10 Distributions from IRA Accounts 11 Journaling of Assets 12 Deposits 13 Check Deposit Procedures 13 Check Deposit Entry Code Cross-Reference Chart 14 Deposit Corrections 15 Returned Checks 15 Acceptable/Unacceptable Deposits 16 Wire Transfers 17 Incoming Wire Transfers 17 Outgoing Wire Transfers 18 Who to Contact If you have any questions about the information or procedures outlined in this document, please call your RBC Advisor Services Client Service Representative (CSR) at (866) Disbursements and Deposits 1

2 Responsibilities and Cut-Off Times Responsibility Of Activity Cut-Off Time Advisor Advisor RBC AS RBC AS Advisor Determine the cash available in the customer account. Submit request to RBC AS via DOORS or fax with LOA, if required. Reviews and processes requests for check disbursements, wire transfers, ACH and journals, provided proper documentation is received and funds are available in account. Non-Trade Confirmation mailed to clients to confirm third-party transactions, including checks, wires, journals, ACH (On-Demand only), Charitable Gifts, etc. Review the Outstanding Check Report on PostEdge -- ZTED040B: Outstanding Checks (M) for checks that have not been presented for payment by the client within 90 days. Before request is submitted. Check requests: 3:30 p.m. ET Hand-delivered checks in NY: 1:00 p.m. ET Journal s: 3:00 p.m. ET Wires: - International wire transfer requests 2:30 p.m. ET. - Domestic U.S. wire transfer requests 3:00 p.m. ET. Same day, if submitted before cut-off time. Next Day Report Updated Daily Disbursements and Deposits 2

3 ACH Transactions Clients can work with their Advisor to request on-demand or recurring disbursements from their accounts to another financial institution using Automated Clearing House (ACH) transmissions. Funds are transferred electronically, which in most cases, saves additional banking fees, as banks may waive incoming transfer fees for ACH transmissions. To establish ACH instructions, a completed, signed Electronic Funds Deposits/Payments Set-up Form (forma_acai) must be submitted to RBC AS. This form is also used to receive dividends and interest payments via ACH. All payments must be made on cleared funds. Please allow ample time for trades to settle and checks to clear. Forms Used for ACH Set-up and Changes Document Form ID Instructions Electronic Funds Deposits/ A_ACAi Use this form to establish new ACH instructions. Payments Set-up Form Change Form, Electronic A_ACCi This form is used to change existing ACH instructions. Funds Deposits/Payments Electronic Funds Deposits/ Payments Termination From A_ACEi This form is used to terminate existing ACH transactions. Systematic ACH Transaction Setup To request a systematic ACH transaction for a non-qualified plan (non- IRA) account Procedure 1. From AdvisorWorkS, print an Electronic Funds Deposits/ Payments Set- Up Form (A_ACAi) for the client or provide this form to the client. 2. Review the completed form to ensure: - All required fields are populated - All account owners sign and date the form - A voided check or bank documentation complete with routing/aba number and account number has been attached. 3. Fax completed form and voided check or bank documentation to RBC AS at (866) RBC AS will review the form and supporting documentation. If all is in good order, RBC AS will sign and date the form and process the request. Note: If any signatures or information on the form are missing or incomplete, the Advisor will receive a notification with a brief explanation from RBC AS. You will then need to work with the client to obtain a corrected form. When obtained, the corrected form should be faxed to RBC AS at (866) Reminder: Since RBC Capital Markets is the clearing agent, our name will appear on all client bank statements. Disbursements and Deposits 3

4 ACH On-Demand On-demand telephone transfer allows an Advisor to move funds between a client s account and an outside bank account on an ad hoc basis, after the client signs form A_ACAi providing authorization. (There is no fee for ondemand service.) Once the ACH bank profile is active, the account is ready to use the on-demand feature. To request an on-demand disbursement for a client Procedure 1. Submit a DOORS request (code AS) to RBC AS. The requests must include: - RBC account number - Dollar amount of transaction - Direction of transaction (incoming or outgoing to/from RBC account) - Name of bank the transaction is coming from/going to 2. s must be received no later than 4 p.m. ET for same-day processing. Dividends/Interest ACH Setup A client may opt to receive dividends and interest from his/her account daily, weekly or once a month via ACH instead of by paper check. This feature can be selected at the time of the initial ACH set-up, or added later. To set up disbursement of dividends/interest via ACH Procedure 1. To set up this type of payment at the time of the initial ACH set-up, complete all the steps in Systematic ACH Transaction Setup and check the Dividends/Interest box in the BANK ACCOUNT INFORMATION section. 2. The Advisor should confirm with RBC AS that the account is coded properly for dividends and interest. - To verify the account coding, use the Main tab in ClientSource under Account Details next to Dividend Instructions. - If a change needs to be made, RBC AS can make the change by selecting the appropriate choice from the ClientSource drop-down menu (1-Pay Monthly, 3-Pay Daily, 4-Pay Weekly). Reminder: Since RBC Capital Markets is the clearing agent, our name will appear on all client bank statements. Disbursements and Deposits 4

5 Direct Deposit/Bill Pay Direct deposits and automatic withdrawals via the ACH system are often used for payroll, Social Security and other deposits, as well as monthly bill payments such as utility, mortgage and insurance. To initiate a direct deposit or withdrawal To terminate a Direct Deposit/Bill Pay ACH Transaction Procedure 1. The client must contact the outside institution and send them a voided Investment Access/Standard Check or provide them with the following information: - The bank routing number: The client s 13-digit direct deposit/bill payment account found in the Account Details section of the Main tab in ClientSource. 2. The client should also provide the outside institution this address in case there are any inquiries: JP Morgan Chase c/o RBC Capital Markets Corp. Attn: Client Account Services - ACH Dept. 510 Marquette Avenue S. M10 Minneapolis, MN To terminate a direct deposit or withdrawal, the client must contact the outside institution and follow its procedures for canceling transactions. Disbursements and Deposits 5

6 ACH Changes Clients may contact their Advisor to request changes to the bank profile information, or to change the frequency, dollar amount, or direction of a regular scheduled ACH transaction, or delete the on-demand or add/delete the dividend features. To make a change to an ACH transaction or feature Procedure 1. From AdvisorWorkS, print a blank Electronic Funds Banks and Transactions Change Form (A_ACCi). 2. Complete the form indicating all necessary changes or forward to the client for completion. 3. Review the completed form to ensure: - All required fields are populated - All account owners sign and date the form - A voided check or bank documentation complete with routing/aba number and account number has been attached. 4. Fax completed form and voided check or bank documentation to RBC AS at (866) RBC AS will review the form and supporting documentation. If all is in good order, RBC AS will sign and date the form and process the request. If any signatures or information on the form are missing or incomplete the Advisor will receive a notification with a brief explanation from RBC AS. You will then need to work with the client to obtain a corrected form. When obtained, the corrected form should be faxed to RBC AS at (866) Note: When a prescheduled transaction has gone past its specified end date, it cannot be extended using a Change form (A_ACCi). To continue the arrangement, the client must complete the ELECTRONIC FUNDS/PAYMENTS section of a set-up form (A_ACAi). Disbursements and Deposits 6

7 Clearing ACH Transactions and Funds Availability The Federal Reserve Bank System clears ACH transactions using an overnight computer batch cycle, as does RBC Capital Markets. The following chart shows when funds should be available to the client when transferred via ACH. ACH Activity Funds in or out Account Debited or Credited ACH Scheduled Payments (includes Retirement Distributions) OUT Day 1 Day 2 ACH Scheduled Deposits IN Day 1 Day 1 Effective at Client s Bank Account Dividend/Interest Payments via ACH OUT Day 2 Day 2 On-Demand requests prior to 4:30 p.m. ET OUT Day 1 Day 2 On-Demand requests prior to 4:30 p.m. ET IN Day 1 Day 2 In the chart above, Day 1 is the scheduled transaction date or date of request. Weekly ACH incoming transactions that are initiated by RBC AS must be scheduled for the first business day of the week. Outgoing transactions may be scheduled any day of the week. For ACH Schedule Payments, funds must be available in the client s account at the close of business the day prior to the scheduled date. For Dividends/Interest Payments, the transaction schedule depends on the dividend pay out coding instructions on the client s account. For On Demand "outgoing," funds are debited from client's account after the ACH file is transmitted to the bank after 6 p.m. ET. For On Demand "incoming," funds are immediately credited to the clients account after the transaction is submitted on BPS. Those funds are not available for disbursement on the transaction date. For Schedule Payments and Deposits, if the transaction falls on a weekend or holiday the transactions are initiated the previous business day. If a scheduled transaction fails due to insufficient funds, the system automatically reinitiates the scheduled transaction until it is completed successfully for up to five business days. You should not attempt an on-demand ACH transaction when there are insufficient funds or the money could be sent twice. Disbursements and Deposits 7

8 ACH Deletions Advisors may terminate a systematic ACH transaction generated by RBC AS or delete bank profile information at any time by sending a DOORS case (code AS) to RBC AS. To terminate an ACH transaction or delete bank profile information Procedure 1. From AdvisorWorkS, print a blank Electronic Funds Banks and Transactions Termination Form (A_ACEi). 2. Complete the form indicating the bank(s), on-demand, and/or transactions to be terminated. 3. Review the completed form to ensure: - All required fields are populated - All account owners sign and date the form 4. Fax the completed form to RBC AS at (866) RBC AS will review the form and supporting documentation. If all are in good order, RBC AS will sign and date the form and process the request. If any signatures or information on the form are missing or incomplete the Advisor will receive a notification with a brief explanation from RBC AS. You will then need to work with the client to obtain a corrected form. When obtained, the corrected form should be faxed to RBC AS at (866) Note: When a bank profile is deactivated, any systematic transactions are canceled. However, if dividends and interest remain coded to be sent, payments will be made by check and mailed according to the account mailing instructions. Disbursements and Deposits 8

9 Check Disbursement A check can be issued to a client provided there are sufficient, settled, free and clear funds in the account or the client has available margin. Please allow ample time for trade settlement and/or check deposits to clear. Checks are issued from RBC AS and delivered as instructed. Checks requested from margin accounts must be approved by the margin department for funds availability before the check will be issued Checks issued as distributions from RBC Capital Markets Corp. custodied retirement plan accounts will be reviewed and processed through Retirement Plan Operations. RBC AS reserves the right to wait two business days after a check has been deposited before disbursing funds from an account. The deadline for check requests is 3:30 p.m. ET. Check Disbursement Procedures To request a check made out to the name and address of record To request a third-party check where the payee differs from the account title or the delivering address differs from the address of registration Procedure 1. Submit your request via a DOORS case (code AS) to RBC AS. Include the following information: - Account number/name - Amount of check request - Address of record 2. RBC AS will notify the Advisor if the request cannot be approved because of insufficient funds. 3. Upon approval, RBC AS or Retirement Plan Operations will print and send the check to the client, as instructed. 1. Fax a Letter of Authorization (preferably form A_LOA Standing Letter of Authorization for Funds and Securities Transfer) to RBC AS at (866) The LOA must include the following information: - Advisor Name - Account name and account number - Name that check is payable to - Name and address that check is to be mailed to - The dollar amount of check - The account owner s signature 2. RBC AS will notify the Advisor if the request cannot be approved because of insufficient funds. 3. Upon approval, RBC AS or Retirement Plan Operations will print and send the check to the client, as instructed. Disbursements and Deposits 9

10 Types of Disbursements and Required Documentation Payable To: Delivered To: Acceptable Method/Required Documentation Beneficial Owner Beneficial Owner Third Party Mailing address of record Different mailing address Send DOORS case (code AS) from the Advisor, including: - Account number/name - Amount of check request - Address of record Fax request from authorized signer at Advisor (each time) with signed LOA (Form A_LOA) from account owner. Fax request from authorized signer at Advisor (each time) with signed LOA (Form A_LOA) from account owner. Note: Disbursements from joint accounts payable to one joint tenant or a third party usually require one signature from either party. However, in certain circumstances RBC AS may request dual signatures (e.g., one joint tenant requests a significant percentage of account value be transferred to themselves). Stop Payments on Checks Issued To request a stop payment of a check issued by RBC AS, send a DOORS case (code AS) with the request. Include all the following information in your DOORS case: account number, check number, amount of check and IRA coding (where applicable). The Advisor should notify RBC AS directly to reverse tax withholding (where applicable). If the check has not cleared the item can be stopped. If the check has cleared, the request cannot be processed. The Advisor will be notified if a stop payment request cannot be processed. Please note the credit will not display in the client s account until the next business day. Disbursements and Deposits 10

11 Distributions from IRA Accounts Systematic and on-demand outgoing distributions can be sent via ACH or check. (There is no fee for this service.) Systematic distributions via wire are not available. Incoming on-demand contributions via ACH are not generally allowed. Forms Used for IRA Distributions Document Form ID Instructions On-Demand Distribution A_ODD On-demand distributions will allow your client to request a distribution (written or oral) provided all set-up paperwork has been received and processed. Distribution IRA/ SEP/ROTH/SIMPLE Distribution s A_IDI To take a distribution of assets out of an IRA/SEP/ROTH/ SIMPLE retirement account. Systematic distributions are scheduled outgoing transactions for a consistent, pre-determined dollar amount. Use the Distribution form (A_IDI). On-demand Distributions are ad hoc transactions on an as needed basis. Use the On-Demand Distribution form for these transactions (A_ODD). If a client requests a distribution by contacting the Advisor, the Advisor should submit a DOORS request (code AS) to RBC AS. Reminder: Since RBC Capital Markets is the clearing agent, our name will appear on all client bank statements. Disbursements and Deposits 11

12 Journaling of Assets Assets may be journaled between RBC AS accounts per instructions below: Journal Type Between same titled accounts All other journals Required Documentation DOORS request (code AS) from Advisor (each time) provided Advisor has fund disbursement authorization for account Faxed request with signed LOA from account owner (Form A_LOA), including: - From Account Name/Number - To Account Name/Number - Dollar Amount and/or Securities Journal requests will be processed same day provided proper documentation is received by 3:00 p.m. ET. Disbursements and Deposits 12

13 Deposits Clients may provide checks to the Advisor to deposit into their accounts. The checks should be mailed to RBC AS for processing. To ensure timely credit of funds to customer accounts, incoming checks should be reviewed before deposit. The Advisor should confirm that there is no disparity in amounts, no postdating or omitted data required to clear the check (signature, etc). RBC AS reserves the right to wait two business days after a check has been deposited before disbursing funds from an account. Note: Checks must be made out to RBC Capital Markets. If a client wishes to deposit a check made out in his/her name, the client must endorse the back and write Pay to the order of RBC Capital Markets. Required Forms for Check Deposits Form Title Mailed Check Transmittal Form Form ID on AdvisorWorkS A_CASH-007 Description/Instructions Include a completed copy of this form when submitting client checks to RBC AS. Check Deposit Procedures When receiving a check from a client: 1. Complete a Mailed Check Transmittal Form (see Check Deposit Entry Code Cross-Reference Chart) 2. Ensure the client s account number is written on the face of the check. 3. Make a copy of each document (front and back) and retain for your records. 4. Attach the checks to the form (do not staple). 5. Mail the Mailed Check Transmittal Form and the check(s) to RBC Advisor Services, [insert address]. Disbursements and Deposits 13

14 Check Deposit Entry Code Cross-Reference Chart Non-IRA Account Coding Description Check Received Check from agent on dividend Check from agent on interest Check received from annuity company Check from agent on return of principal Selling privately traded assets Incoming Transfer from ACAT Account BPS Entry Code CKR ADV AIN ANU PRI SLP TAN IRA Account Coding Description Traditional IRA contribution Roth IRA contribution BPS Entry Code BYY* current year for current year (E.g.: Deposit in 2008 for 2008= B08) IRY* current year for prior year (E.g.: Deposit in 2008 for 2007= IR8) BYY* current year for current year (E.g.: Deposit in 2008 for 2008= B08) BYY* current year for prior year (E.g.: Deposit in 2008 for 2007= B07) 60 day rollover CDY* Direct rollover CEY* 60 day rollover into (Simple IRA only) CFY* Company match CMY* Matching current yr- (E.g.: Deposit in 2008 for 2008: SIMPLE = CM8) PMY* Matching prior year (E.g.: Deposit in 2008 for 2007: SIMPLE = PM8) Employee salary deferral Company contribution EYY* current year for current year (E.g.: Deposit in 2008 for 2008= E08) EDY* current year for prior year (E.g.: Deposit in 2008 for 2007= ED8) SYY* Employer SEP Cont current yr SEPs (E.g.: Deposit in 2008 for 2008= S08) SEY* Employer SEP for prior year SEPs (E.g.: Deposit in 2008 for 2007= SE8) ESY* Employer SIMPLE cont current year (E.g.: Deposit in 2008 for 2008= ES8) KYY* (Employer Q/P Cont current yr - KM, KP (E.g.: Deposit in 2008 for 2008= K08) EPY* Employer Q/P for prior year - KM, KP (E.g.: Deposit in 2008 for 2007= EP8) Disbursements and Deposits 14

15 Description Litigation settlement for asset in account Incoming Transfer from ACAT Account Payment of Retirement Annual Fee Recharacterization Conversion Check from agent on dividend Check from agent on interest Check received from annuity company Check from agent on return of principal Selling privately traded assets Description LSC BYP*** AFE RCC - Current Year RPC - Prior Year RCY ADV AIN ANU PRI SLP * Y or *YY = Tax Year ** A follow up DOORS request (code AS) must be provided with the following information: - Account Number - Amount - Reason for deposit (e.g.: Transfer) - Date of entry Deposit Corrections When a deposit has been processed incorrectly, submit a DOORS case (code AS) to RBC AS requesting a correction and include all the following information: Copy of the check Account number(s) Dollar amount Explanation of the correction request. Returned Checks RBC AS, Treasury Operations, and the Margin department will work together with the Advisor to resolve returned checks. The reason for the returned item will determine how the item is handled. RBC AS will notify the Advisor regarding a returned check in a client account. If the returned check was used to pay for a trade and the client does not cover the resulting debit, the account will be eligible for sellout and charged with any loss. If the client does not cover the loss, it will be charged to the Advisor. A fee will be charged to the customer account for each returned check. Disbursements and Deposits 15

16 Acceptable/Unacceptable Deposits Acceptable Check made payable to RBC Capital Markets Corp. Check made payable to account owner. Unacceptable Cash. Clients who bring cash for deposit must be directed to obtain a cashier s check or similar instrument from a bank. Advisors may not convert currency into an acceptable form of deposit for a client or assist them in any way that would allow them to circumvent this policy. Starter Checks these are checks that are issued by a bank when the account is first opened. They generally do not include name/address and the check numbers are extremely low (e.g., 100). Checks dated 180 days or more prior to deposit. Post-dated checks, defined as checks with a date in advance of today s date. Checks drawn on a foreign bank or in a foreign currency. Contact RBC AS at (866) for questions related to foreign checks or for recommendations regarding this policy. Third party checks, such as checks drawn on Jane Doe s account made payable to Jim Smith, who has signed it over on the back to Jack Jones for deposit into Jack Jones account. Checks made payable to a corporation being deposited to a non-corporate account. Checks made payable to an individual being deposited into a corporate account. Note: RBC AS reserves the right to refuse to accept any deposit. Disbursements and Deposits 16

17 Wire Transfers Clients may transfer funds into their account from another financial institution through the Federal Reserve Wire Network (also known as Fed Wire ). U.S. domestic wire transfers are typically completed same-day, providing the request is made by the deadline. International wire transfers can take two or more business days. Incoming Wire Transfers Typically, no action is required on the part of an Advisor for a client to receive funds into their account via a wire transfer. However, if a client is expecting a wire transfer of more than $1 million, contact the RBC AS by either sending a fax ( ) or a DOORS case (code AS) to indicate that a client is expecting a significant wire transfer. Include all of the following information on the notification: Amount of expected funds Date funds are to be wired Client s name Account number Wire Transfer Instructions Domestic wire transfer instructions, U.S. dollar Procedure Address: U.S. Bank 800 Nicollet Ave Minneapolis, MN ABA Number: Account Name: RBC Capital Markets Corp Account Number: For Further Credit: (client name) (full 8 digit account number) International wire transfer instructions, U.S. dollar For incoming foreign currency wire transfers Include the SWIFT code for U.S. Bank which is USBKUS44IMT Contact RBC AS for instructions. Note: When proper crediting instructions are not received on an incoming wire transfer and reasonable attempts have been made to apply the funds by Wire Transfer Services, the wire transfer will be returned unable to apply. Funds received via an incoming wire after 6:00 p.m. ET will not start to accrue Credit Interest Program interest until the following business day. Disbursements and Deposits 17

18 Outgoing Wire Transfers Clients may transfer funds from their account to another financial institution through the Federal Reserve Wire Network (also known as Fed Wire ). U.S. domestic wire transfers are typically completed same-day, providing the request is made by the deadline. International wire transfers can take 2 or more business days. The deadline for all international wire transfer requests is 2:30 p.m. ET. The deadline for all domestic wire transfer requests is 3:00 p.m. ET. Note: Foreign currency wires are debited from the client s account on value date (the day payment is made to the foreign bank) which may be 1-2 business days after the transaction is initiated depending on what currency is involved. Required Forms for Outgoing Wire Transfers Document Form ID Instructions Wire Form A_CASH-012 Complete this form to request a domestic wire transfer. International Wire Form A_CASH-014 Complete this form to request an international wire transfer. LOA (Letter of Authorization) A_LOA - An LOA may be used in lieu of a Wire Form (for domestic U.S. wire transfers only) when the request is same name to same name. - The International Wire Form must be completed for all international wires. - An LOA MUST be used in conjunction with either Wire Form for requests going to third parties (not same name to same name). - LOAs must be signed by the client(s). Process for Wire Transfer s Outgoing domestic wire transfer Outgoing international wire transfer Procedure 1. Complete a Wire Form (A_CASH-012) and a Letter of Authorization (when necessary). 2. Fax both the form and LOA (when necessary) to RBC AS at Complete an International Wire Form (A_CASH-014) and a Letter of Authorization (when necessary). 2. Fax both the form and LOA (when necessary) to RBC AS at When requesting a wire transfer, please consider accrued margin debit interest that may be in the account, and if appropriate, reduce the amount of the wire request accordingly. RBC AS attempts to verify account balances prior to honoring wire requests, but due to the unpredictability of subsequent postings or transactions, cannot be responsible for unsecured debits that may arise of or subsequent to the disbursement of funds per a wire request. Disbursements and Deposits 18

19 RBC AS reserves the right to wait two business days after a check has been deposited before disbursing funds from an account. Note: Any outgoing wire transfer request from a Retirement account on which RBC Capital Markets Corp. is custodian is treated as a distribution that is processed by Retirement Plan Operations. Required Information for International Wire Transfers All of the following information must be provided to complete an international wire transfer: Amount of wire, either in U.S. dollar or foreign currency, along with foreign-currency type. Beneficiary bank name, city, and country. SWIFT Code which should always be 8 or 11 characters long. Country specific routing code is optional for all countries except Canada, Australia, and the U.K. (transit code required for Canada, BSB number for Australia and a six digit sort code for the U.K.). U.S. Correspondent Bank, ABA #, and Swift Code (if applicable). Client account number and client account title at the bank. IBAN (International Bank Account Number, applicable for E.U. countries only): Mandatory for any international wire transfer being sent to a country in the European Union and would replace the bank account number. CLABE (applicable for Mexico only): Mandatory, 18-digits long and would replace the bank account number. (Optional) Additional information like attention names, misc. references or for further credit information. Disbursements and Deposits 19