National Securities Clearing Corporation

Transcription

1 U S E R G U I D E National Securities Clearing Corporation ACATS- Fund/SERV November, 2007

2 Table of Contents Introduction... 1 Purpose of Document... 1 Background... 1 Time Period... 1 Walkthrough of a Mutual Fund Transfer... 1 Process Timings... 2 Record Type 018 ACATS-Fund/SERV Transfer Re-Registration... 3 Background... 3 Modifications... 3 Consistent Data... 3 New ACATS Redesign Fields... 4 Modifications to Existing Fields... 6 Default Registration... 8 Record Type 019 ACATS-Fund/SERV Transfer Acknowledgment/Rejection Background Modifications New ACATS Redesign Field Modifications to Existing Fields Record Type 080 ACATS-Fund/SERV Transfer Reminder Background Modifications New Feature Modifications to Existing Field Record Layouts Background Implementation Timings Implementation Strategy ACATS-Fund/SERV Transfer Re-Registration (Record 018) Record Type 080 ACATS-Fund/SERV Transfer Reminder For More Information Glossary of ACATS Terms ACATS-Fund/SERV User Guide Revised & Posted November 2007

3 Introduction PURPOSE OF DOCUMENT This document describes the changes made to the Automated Customer Account Transfer Service (ACATS)-Fund/SERV interface due to the ACATS redesign project. The purpose of this document is to describe the new functionality and assist the funds in determining how to process the information coming from the ACATS-Fund/SERV link. It should also serve as a guide to help the funds decide what information to communicate back to the ACATS-Fund/SERV interface. BACKGROUND ACATS was implemented in 1985 to expedite the transfer of customer accounts from broker to broker. In February 1999, NSCC implemented a redesign of ACATS that accommodates new products and new customers, and shortens the transfer timeframe. The ACATS-Fund/SERV link was set up in 1989 to facilitate the transfer of mutual funds from one firm to another. ACATS passes receiver-inputted registration information to Fund/SERV, which in turn passes the re-registration data to the funds. The following are the record types that relate to the link: Record Type 018 ACATS-Fund/SERV Transfer Re-Registration Record Type 019 ACATS-Fund/SERV Transfer Acknowledgment/Rejection Record Type 080 ACATS-Fund/SERV Transfer Reminder TIME PERIOD A full account transfer in the ACATS system completes in five (5) business days, four (4) business days if accelerated. A partial account transfer completes in three (3) business days. WALKTHROUGH OF A MUTUAL FUND TRANSFER This next section describes a typical transaction that would include a mutual fund. Steps 1 5 occur in the ACATS system and are provided for background information. The funds get involved in the process in step 6. See the glossary in Appendix A for term definitions. A typical transfer is as follows: 1. The receiver requests an account by submitting a transfer initiation record into ACATS. The account is in Request status. 2. The deliverer receives the request and submits a list of assets for that account, including mutual fund asset information. The account is in Review status. 3. The receiver reviews the assets and ensures the account meets with the firm s credit policy. 4. The receiver submits registration information to ACATS. 5. The account is placed into Settle-Prep status after one day in Review status. Note: If the receiver accelerates the account, Settle-Prep can begin the night that the deliverer submitted the assets. ACATS-Fund/SERV User Guide 1 Revised & Posted November 2007

4 6. Registration information is passed from the ACATS system to Fund/SERV, which in turn passes the information via the Record Type 018 to the fund, the night the account is in Settle-Prep. 7. The deliverer will be debited the value of the original amount of the mutual fund asset and the receiver credited that value in the money settlement system on settlement day. 8. The fund can acknowledge or reject the account up to one business day from receipt of the registration. Reminders (Record type 080) will be sent to the fund for one business day. 9. If the fund acknowledges (Record type 019) on or before settlement date, the delivering firm will not be charged any money because offsetting monies are processed when the fund acknowledges the transfer. The deliverer will be credited and the receiver debited the monies in the money settlement system. 10. If the fund rejects (Record type 019 with reject code), the receiving and delivering firms will get receive and deliver instructions from the ACATS system and will have to handle the transfer outside of the system. PROCESS TIMINGS The ACATS system is being redesigned as a multi-batch process. The participant has more than one opportunity during the day to request an account, submit assets, submit registrations, or make an adjustment. Cut-off for registration input to ACATS is 4 PM Eastern Time. The ACATS-Fund/SERV link will continue to be a once a day batch event. The Record Type 018 reregistration information will be passed to the funds by 8 PM Eastern Time (this is an approximate time and could be as soon as 6 PM). The Record Type 019 acknowledgment/rejection will be expected back from the funds by 11 AM Eastern Time. If the item is acknowledged by 11 AM of settlement day, the money settlement reversal will take affect and there will be no money settlement charge to the deliverer. The Record Type 080 reminder will be passed to the funds at 8 PM Eastern Time. ACATS-Fund/SERV User Guide 2 Revised & Posted November 2007

5 Record Type 018 ACATS-Fund/SERV Transfer Re-Registration BACKGROUND The ACATS transfer record is the re-registration information passed from the ACATS system to the mutual fund companies via Fund/SERV. The registration information will be supplied by the firms or created from NSCC default information (see section 2.3. for default registration information). Funds use this record to re-register mutual fund assets from a delivering firm to a receiving firm during the transfer process. MODIFICATIONS Below are the modifications to the ACATS transfer record: Consistent Data The re-registration data will become consistent between ACATS and Fund/SERV. Initially the ACATS registration data and the Fund/SERV full registration data were the same but over time there were additions to the Fund/SERV record that were not made to the ACATS record. With the redesign of ACATS, NSCC is taking this opportunity to include all the Fund/SERV fields in the ACATS process. This will help reduce the number of registration records rejected. The following fields were added to be consistent with the Fund/SERV Full Registration Record: TPA Number Customer Name Related Account Number Indicator SWP/PAC Effective Date CDSC Payment Code Disbursement Options Disbursement Amount Monthly Payment Indicators Payment Date Indicator Retirement Tax Indicator Shareholder Bank Account Number Shareholder Bank Account Type First Check Date Cost Basis Option Payable 1 Security Issue Country Code Payable 1 Security Issue ID Payable 1 Security Issue Check Digit Alternate Payable 1 Indicator ACATS-Fund/SERV User Guide 3 Revised & Posted November 2007

6 Alternate Payable 1 Reason Six payables allowed Specific information and rules on the valid values are contained in the file layouts and the Fund/SERV manual. New ACATS Redesign Fields a) Customer Account Number at Firm This field is presently combined into a single field with Customer Account Number at Fund. The fund/firm indicator is used in the current system to identify whether the account is a fund or firm account. The ACATS redesign provides for two separate fields to indicate the customer account number at the fund and the customer account number at the firm. There are separate fields for the receiving firm account information and for the delivering firm account information. Please refer to Important Notice A4880 dated December 29, 1998, for more information on the customer account number and Book/Physical Share Indicator. The fund should utilize the firm and fund account number when trying to identify the account. If the fund determines that it must reject the registration because it can not find the appropriate account after searching both fields, the existing Fund/SERV reject codes of Customer (FROM) Account Number at Fund Invalid and Customer (TO) Account Number at Fund Invalid can be used. b) Full/Partial Indicator Presently, the number of mutual fund shares transferred through ACATS- Fund/SERV is based on the delivering firm s input. The actual amount registered on the fund s records could be adjusted during the deliverer s input and the settlement of the ACATS transfer. These adjustments can be due to reinvested dividends or capital gains. The delivering broker must initiate a residual credit to transfer the remaining shares. In the ACATS redesign, the deliverer will be able to specify on the transfer whether the entire account position should be moved or only the exact shares specified. When a fund sees a '0' (full) in this field, the fund should ignore the transfer share quantity specified and re-register the number of shares it has for that account. The quantity field is used by ACATS for valuation purposes, but this number should be ignored by the fund when a full is indicated. When the fund sees a '1' (partial) in the field, the fund should only re-register the specified shares in the transfer share quantity if possible. If there are more shares requested than actual shares in the account, the fund should make an attempt to contact the firm in order to determine if it can move the available shares. Note: A partial transfer is permissible in the ACATS redesign. It will be possible to create a new account and still maintain the old account. The fund should specify the actual quantity transferred in Record Type 019- transfer acknowledgment/rejection record (see section 3 for more details on Record Type 019). ACATS-Fund/SERV User Guide 4 Revised & Posted November 2007

7 c) Default Registration This field will help the fund determine if the registration is ACATS default information or participant submitted. A '0' is participant supplied; a '1' indicates default registration (see section 2.3. for default registration information). d) Transfer Disbursement Options Three new fields were added for the receiving firm to advise funds what to do during the transfer period with the accrual bucket, residuals and cash-in-lieu resulting from fractional shares. The fields are: Transfer Disbursement Option Accruals Transfer Disbursement Option Fractional Cash-in-lieu Transfer Disbursement Option Residuals The Transfer Disbursement Option Fractional Cash-in-lieu and Transfer Disbursement Option Residuals fields have the following options available: '0' - The fund should give the cash to the broker at the delivering firm. '1' - The fund should reinvest at the delivering firm. '2' - The fund should give the cash to the customer at the delivering firm. '3' - The fund should give the cash to the broker at the receiving firm. '4' - The fund should reinvest at the receiving firm. '5' - The fund should give the cash to the customer at the receiving firm. The Transfer Disbursement Option Accruals field has only the following two options available: '2' - The fund should give the accrual as cash to the customer at the delivering firm. '4' - The fund should process a "bucket to bucket" transfer of the accrual to the account at the receiving firm. Notes: i. If the fund is unable to process the disbursement as requested, the fund should indicate the disbursement option taken on the Transfer Acknowledgment/Rejection Record 019. This will facilitate communication with the broker. ii. For most ACATS transfers of accrual funds, option 4, which is the accrual "bucket to bucket" movement from deliverer to receiver, should be used. For omnibus or house accounts it is possible to have option 2, which is cashing out the accrual bucket at the delivering firm. iii. The disbursement options are not applicable for a partial transfer. However, even with a partial transfer, the disbursement options will be required for input by the receiver in the ACATS system and included with the registration information for the fund. This is because a partial transfer request may turn into a full transfer if the requested amount is greater than the actual shares in the account. iv. The current re-registration record already contains indicators that apply to the handling of fractions and payable information for the account. These new fields only apply to the monies in the account during the account transfer process. ACATS-Fund/SERV User Guide 5 Revised & Posted November 2007

8 v. Although the new Transfer Disbursement Option Fractional-Cash-in-lieu field is a required field for the receiver; the existing Fraction Indicator field will most likely be utilized to determine whether to transfer or liquidate any fractional shares. Most funds have indicated that they will transfer the fractions that exist in the account to the receiver. This new Transfer Disbursement Option Fractional-Cash-in-lieu field can be used to determine where the transfer/liquidation can occur (i.e. at the deliverer or the receiver). If there is a discrepancy between the Fraction Indicator and the new Transfer Disbursement Option Fractional-Cash-inlieu field, the fund would most likely utilize the Fraction Indicator field. e) Network Control Indicator (Delivering Firm) This field contains values to indicate the network level for the delivering firm s account. This is for the fund s information only. f) Currency Indicator This field is used by ACATS for valuation and is the ISO currency code. The value passed from ACATS will be USD. g) Settlement Date This field indicates the settlement date of the ACATS transfer. The field is eight positions for the year 2000 compliant version (format mmddccyy) and is six positions for the non-year 2000 compliant version (format mmddyy). Modifications to Existing Fields a) ACATS Control Number The firms use the ACATS Control Number in ACATS to identify the transfer. The ACATS Control Number was expanded from 12 to 20 positions. The format is CCYYDDDNNNNNNNSSSSSS where: CC YY DDD NNNNNNN SSSSSS Century when record was submitted Year when the transfer is initiated Julian date when the transfer is initiated System assigned sequence number, beginning at for each CCYYDDD Asset sequence number of that mutual fund Note: The funds use the Fund/SERV control number to identify the transfer. Fund/SERV will still assign a control number to the ACATS transfer. The format is unchanged and is CATSAYDDDSSSSSS where: CATSA Y DDD SSSSSS Literal CATSA Last digit of the year Julian date when sent to the fund Sequential Number ACATS-Fund/SERV User Guide 6 Revised & Posted November 2007

9 b) Fund Account Indicator This field qualifies the type of account being established by the fund. Presently, there are more ACATS values than Fund/SERV values; with the redesign, the ACATS-only values will be eliminated from the new Type 018 Registration Record. The valid values for Fund/SERV and ACATS will be: 0 = New account - domestic 1 = New account - foreign 2 = Existing account - domestic 3 = Existing account - foreign The eliminated values will be: 4 = Network new account - domestic 5 = Network new account - foreign 6 = Network existing account - domestic 7 = Network existing account - foreign The eliminated fields are unnecessary as the networking information comes from the Networking Control Indicator. c) Withhold Indicator This field allows for the firm designation of the customer s tax status. To be consistent with Fund/SERV, a new value of '9' - withhold due B/C notice - will be added. Funds should use this field as it would be used in Fund/SERV. d) Payable Information Indicator This field allows for the firm designation of how monies are paid from the account. To be consistent with Fund/SERV, a new value of '4' - cross fund reinvest - will be added. Funds should use this field as it would be used in Fund/SERV. e) Payable Address Options This field references which account options will use the payable address for disbursement of proceeds. To be consistent with Fund/SERV, new values of '8' - cross fund reinvest - and '9' - alternate payable - will be added. Funds should use these fields as they would be used in Fund/SERV. Note: Prior to the redesign, ACATS only allowed for one payable; six payables will be available when the redesign is implemented. f) Transfer Share Quantity This field will be expanded from 13 positions to 14 positions. Note: ACATS allows for 16 positions in the quantity field. Although the two high order digits will be truncated when passing this field to the fund, it should not be an issue because those digits should be zeros. ACATS-Fund/SERV User Guide 7 Revised & Posted November 2007

10 g) Transfer Dollar Amount This field will be used for valuation in ACATS and should not be used by the fund to determine the shares to be transferred. This field was expanded from 11 positions to 16 positions. h) ROA/LOI Value This field indicates the total dollar value of the shares that need to be purchased to fulfill the ROA (Rights of Accumulation) or LOI (Letter of Intent) agreement. This field will be expanded from 11 positions to 16 positions. i) LOI Number/Date This field will be expanded from six to eight digits. j) Processing Date This field will be expanded from six to eight digits on the year 2000 compliant layouts. DEFAULT REGISTRATION The ACATS system will create a default mutual fund registration when the participant receiving a mutual fund asset does not input mutual fund re-registration information during the review status or the re-registration is rejected by ACATS. The ACATS system will use a combination of general default values and user-defined profile data to determine the default registration. The ACATS system default mutual fund registration will be created with the following data: Field Name Originator Type Firm Number Fund Number Security Issue Country Code Security Issue ID Security Issue Check Digit Field Value/Description B = Firm Same as the Original Receiver Number on the transfer data Fund Number of the Security Issue ID Zeros Same as the mutual fund asset ISIN Security Issue ID Zeros Book/Physical Share Indicator '1' = Transfer in and out Book (Record 018) '0' = Book Shares - BIN provided (FR rec) PI Delivery Customer Name Fund Account Indicator Network Control Indicator (Receiving Firm) SSN/EIN Indicator Spaces First twenty (20) bytes of Original Receiver Customer Account Name on transfer data 0 = New account - domestic User Defined Profile Default is 0 = Non-Networked 0 = Tax ID number ACATS-Fund/SERV User Guide 8 Revised & Posted November 2007

11 Field Name SSN/EIN Number Dividend Code Field Value/Description Tax ID of the ACATS participant receiving the mutual fund asset User Defined Profile Default is dividend code on the mutual fund asset from the deliverer Withholding Indicator Payable Information Indicator Customer Name End Line Customer Zip Code 0 = Certified (W9 on file) 0 = Address of record 4 = Name line ends on line four User Defined Profile Default is Spaces Social Code '18' = Networking Sub-acct if Level = = Broker/Dealer for all other levels. '15' = Trusts (for Banks) NAV Account Indicator Margin Account Indicator Check Writing Privileges Indicator State of Sale Account Representative Name 0 = No 0 = No 0 = No Spaces ACATS DEFAULT Account Representative Number Branch Identification Number Number of Payables Customer Name/Address 1 Customer Name/Address 2 Customer Name/Address 3 00 = No payables Name of ACATS participant receiving the mutual fund asset "FOR BENEFIT OF: " First 19 bytes of Original Receiver Customer Account Name from the transfer data for this mutual fund asset. The next 35 bytes of Original Receiver Customer Account Name from the transfer data for this mutual fund asset ACATS-Fund/SERV User Guide 9 Revised & Posted November 2007

12 Field Name Customer Name/Address 4 Field Value/Description Original Receiver Customer SS Number/Tax ID Primary from the transfer data followed by a space and then Original Receiver Customer SS Number/Tax ID Secondary from the transfer data for this mutual fund asset. Format is PPPPPPPPP SSSSSSSSS where P = primary and S = secondary. Customer Name/Address 5 Customer Name/Address 6 Transaction Type Account Type Indicator Customer Account Number at Firm Delivering Firm Number Customer Account Number at Fund (Delivering Firm) Customer Account Number at Firm (Delivering Firm) Network Control Indicator (Delivering Firm) deliverer Fraction Indicator Full/Partial Indicator Transfer Share Quantity Transfer Dollar Amount Default Registration User Defined Profile. Default is spaces. User Defined Profile. Default is spaces. 1 = Transfer to new account Same as on the mutual fund asset from the deliverer Same as Original Receiver Customer Account Number from the transfer data. A User Defined prefix and/or suffix (if provided) will be applied to the beginning (prefix) or ending (suffix) of the account number. Same as Original Deliverer Number on the mutual fund asset from the deliverer Same as Fund Customer Account Number on the mutual fund asset from the deliverer if Book/Physical from Deliverer was '1' or '2' Same as Fund Customer Account Number on the mutual fund asset from the deliverer if Book/Physical from Deliverer was '0' Same as on the mutual fund asset from the deliverer 1 = Transfer fraction Same as on the mutual fund asset from the deliverer Same as Asset Quantity on the mutual fund asset from the deliverer Same as Asset Amount on the mutual fund asset from the deliverer 1 = Default Registration ACATS-Fund/SERV User Guide 10 Revised & Posted November 2007

13 Field Name ACATS Control Number Transfer Disbursement Option - Accruals Transfer Disbursement Option - Fractional/Cash in Lieu Transfer Disbursement Option - Residuals Currency Indicator Settlement Date Field Value/Description Control number and Asset Sequence Number of the mutual fund asset. 4 = Reinvest Receiving firm 4 = Reinvest Receiving firm 4 = Reinvest Receiving firm Same as on the mutual fund asset from the deliverer. Will be USD. ACATS settlement date for this transfer Note: All other fields in the default registration are spaces. ACATS-Fund/SERV User Guide 11 Revised & Posted November 2007

14 Record Type 019 ACATS-Fund/SERV Transfer Acknowledgment/Rejection BACKGROUND The ACATS transfer acknowledgment/rejection record is passed from the mutual fund companies via Fund/SERV to the ACATS system. This record is sent by the fund to either acknowledge or reject an ACATS transfer (record type 018). The fund can report the new account number and any certificate issuance data that may be applicable to the transfer within the acknowledgment record. The inclusion of a three-digit reject code in the Reject Code field of the ACATS Transfer Acknowledgment/Rejection record will identify the item as a rejected transfer by the fund. MODIFICATIONS Following are the modifications to the ACATS-Fund/SERV Transfer Acknowledgment/Rejection Record: New ACATS Redesign Field a) Transfer Disbursement Options Three new fields were added for the fund to communicate the actual disbursement method taken during the transfer period for the accrual bucket, residuals and cash-in-lieu resulting from fractional shares. This is an optional feature. The fields are: Transfer Disbursement Option Accruals Transfer Disbursement Option Fractional Cash-in-lieu Transfer Disbursement Option Residuals The Transfer Disbursement Option Fractional Cash-in-lieu and Transfer Disbursement Option Residuals fields have the following options available: '0' - The fund gave the cash to the broker at the delivering firm. '1' - The fund reinvested at the delivering firm. '2' - The fund gave the cash to the customer at the delivering firm. '3' - The fund gave the cash to the broker at the receiving firm. '4' - The fund reinvested at the receiving firm. '5' - The fund gave the cash to the customer at the receiving firm. The Transfer Disbursement Option Accruals field has only the following two options available: '2' - The fund gave the accrual as cash to the customer at the delivering firm. '4' - The fund processed a "bucket to bucket" transfer of the accrual to the account at the receiving firm. ACATS-Fund/SERV User Guide 12 Revised & Posted November 2007

15 If the fund cannot process the option that was passed via Fund/SERV, the fund should find an option that it is able to process, then change the acknowledgment record to reflect the actual option used. If the fund must reject because it could not accommodate any of the transfer disbursement option choices, the NSCC reject code for these fields will be a "134". This is an existing reject code for the full registration "Disbursement Options" field and means "Disbursement option missing or invalid". Modifications to Existing Fields a) Fund Reject Code This field will be expanded from 2 to 3 positions. Values other than spaces or zeros indicate a fund reject. This field is used to communicate to the firm what is wrong with the registration. Review the Fund/SERV manual for existing reject codes and use the appropriate code to reject. b) ACATS Control Number The ACATS Control Number is the field that the firm uses to identify the transfer in the ACATS system. The Fund/SERV control number is the number that the fund uses to identify the transfer in Fund/SERV. These numbers are different. The Fund/SERV control number is not changing but the ACATS format will be expanded from 12 positions to 20 positions. See section for format details. c) Actual Share Quantity Transferred This is the share quantity re-registered to the receiving account. Although the fund advises NSCC of the actual changed quantity, only the original quantity reported on the asset input will settle through ACATS. Both the original and actual quantities will be reported to the receiving and delivering firms so that the receiving firm can update its records if there is a difference between original and actual quantity. If a partial transfer is indicated, the fund should not change the quantity on the partial unless the share quantity in the account is less than the quantity requested. If a full transfer is indicated, the fund must place the new quantity on the acknowledgment back to NSCC. This field will be expanded from 13 positions to 14 positions. d) Submission Date Submission Date will be expanded from six to eight digits on the year 2000 compliant layouts. e) Certificate Date Certificate Date will be expanded from six to eight digits on the year 2000 compliant layouts. ACATS-Fund/SERV User Guide 13 Revised & Posted November 2007

16 Record Type 080 ACATS-Fund/SERV Transfer Reminder BACKGROUND ACATS Transfer Reminders are sent via Fund/SERV whenever there is an outstanding ACATS transfer that has not been acknowledged or rejected by the fund. Once an ACATS reminder is sent, the fund can: Acknowledge the transfer using record type 019-Acknowledgment. Reject the transfer using record type 019-Rejection with a valid reject code. Allow the transfer to pend for up to one business day. MODIFICATIONS Below are the modifications to the ACATS-Fund/SERV Transfer Reminder Record: New Feature Purge after One Pending Day After one business day with no response from a fund, a pending ACATS Fund/SERV transfer will be purged from ACATS. The age of the reminders will be changed to 9999 and the original transaction will be deleted from the Fund/SERV system. An acknowledgment passed to Fund/SERV after the first day will be rejected back to the fund. The ACATS system will generate ACATS Fund/SERV Receive/Deliver Instructions to the two parties to the transfer. Manual re-registration letters will be passed to the fund to transfer these positions. Modifications to Existing Field a) ACATS Control Number The ACATS Control Number is the field that the firm uses to identify the transfer in the ACATS system. The Fund/SERV control number is the number that the fund uses to identify the transfer in Fund/SERV. These numbers are different. The Fund/SERV control number is not changing but the ACATS format will be expanded from 12 positions to 20 positions. See section for format details. Notes: i. In the year 2000 compliant version of the layouts, the first 14 positions will be in the ACATS TIF Number field. The ACATS asset sequence number will contain the last six digits of the control number. ii. Due to space constraints in the six digit date formats, the ACATS control number will be truncated after the first 12 positions. b) TPA Number and Delivering Firm Number The TPA number and the delivering firm number are two separate fields in the year 2000 compliant layouts. ACATS-Fund/SERV User Guide 14 Revised & Posted November 2007

17 Record Layouts BACKGROUND In April 1998, the Fund/SERV system was modified to accommodate new file structures that are year 2000 (Y2K) compliant with eight-digit dates, while still accepting the old six-digit date formats. The eight-digit date ACATS-Fund/SERV layouts were modified at that time to include the new ACATS- Fund/SERV data elements. These layouts can be found at formats.nscc.com. Note: Section 5.2 and 5.3 describe the implementation process and were written prior to the system implementation. The funds implemented in November 1998 and the firms implemented in February It is kept in this user guide for historical reference. IMPLEMENTATION TIMINGS Subject to SEC approval, all ACATS redesign functionality for the firm side originally scheduled for November 16, 1998, will be implemented on February 22, Monday, February 22, 1999, will be the first day that the redesigned ACATS data will be populated in the ACATS-Fund/SERV files. The funds will still be required to modify their systems to accommodate the new ACATS redesign record layouts as originally scheduled on Monday, November 16, The last day for fund participants to input data in the current formats will be November 13 th. Beginning Monday November 16 th, all fund participants must be prepared to submit and receive data in the new ACATS-Fund/SERV formats. The new ACATS-Fund/SERV formats were designed to be compatible with both the present ACATS system and the future ACATS redesign. In order to ensure that the fund only has to make programming changes once, the fund should allow for spaces in the new ACATS redesign fields. When the ACATS redesign project is implemented in February 1999, all the new fields may be populated with data (depending on input from ACATS participants). Those funds that will continue with the six-digit date formats past November must implement the new ACATS-Fund/SERV six-digit formats in November All fields will be added and expanded to accommodate the ACATS redesign. The Processing Date, Settlement Date, Submission Date and Certificate Date will remain as six-digit dates. See file layouts for details. See section 5.3 for specifics of the field values for the period from November 16, 1998 February 22, Funds may implement the new ACATS-Fund/SERV eight-digit date formats along with all the year 2000 compliant layouts at any time. (Funds that plan to convert to Y2K formats after November 16, 1998, must implement the new six-digit date ACATS-Fund/SERV formats on November 16, 1998). Refer to year 2000 layouts for layout details. See section 5.3 for specifics of the field values for the period from April 1998 February 22, IMPLEMENTATION STRATEGY Until the ACATS implementation in February 1999, the ACATS redesign fields will be part of the layout but most will not be populated. New fields that can be populated with data prior to February 22, 1999, will be handled as noted below. ACATS-Fund/SERV User Guide 15 Revised & Posted November 2007

18 In order to ensure that the fund only has to make programming changes once, the fund should allow for spaces in the new ACATS redesign fields. When the ACATS redesign project is implemented in February 1999, all the new fields may be populated with data. Prior to that time, all new fields that require firm input will contain spaces. From February 22, 1999 March 4, 1999, the fund should expect to process both existing transfers with the pre-redesign values and new transfers with the ACATS redesign values. The following describes how the ACATS-Fund/SERV files will be populated prior to the ACATS redesign implementation on February 22, ACATS-Fund/SERV Transfer Re-Registration (Record 018) a) Same Values During the interim period (April / November February 1999), the fields listed below will be populated in the new re-registration record as they are currently. Record Length Physical Sequence Number Logical Sequence Number Originator Type Firm Number Firm Suffix Record Type Test Indicator Priority Indicator Fund Number Fund Suffix Security Issue Country Code Security Issue ID Security Issue Check Digit Fund/SERV Control Number Processing Date Book/Physical Share Indicator PI Delivery Indicator Fund Account Indicator Note: Codes 4-7 will not exist after the redesign Customer Account Number at Fund Agent for Firm Number ACATS-Fund/SERV User Guide 16 Revised & Posted November 2007

19 Network Control Indicator SSN/EIN Indicator SSN/EIN Number Dividend Code Withhold Indicator Note: The value of '9' will not be present until after the redesign Payable Information Indicator Note: The value of '4' will not be present until after the redesign Customer Name End Line Indicator Customer Zip Code Social Code NAV Account Indicator Margin Account Indicator Check Writing Privileges Indicator State of Sale (State Code) Country of Origin (Country Code) Account Representative Name Account Representative Number Branch Identification Number Customer Name/Address Line 1 Customer Name/Address Line 2 Customer Name/Address Line 3 Customer Name/Address Line 4 Customer Name/Address Line 5 Customer Name/Address Line 6 Transaction Type Account Type Indicator Delivering Firm Number Agent for Delivering Firm Number Fraction Indicator NRA Tax Memo Field ACH (Automatic Clearing House) Indicator ACATS-Fund/SERV User Guide 17 Revised & Posted November 2007

20 PAC (Pre Authorized Check Plan) Indicator SWP (Systematic Withdrawal Plan) Indicator Related Trade Indicator Related Account Number ABA Routing Number b) New Fields That Require Input from Firms The values for the fields listed below will be populated with spaces until the ACATS redesign implementation. The fund should allow for spaces in these fields. Customer Name Network Control Indicator (Delivering Firm) Full/Partial Indicator Currency Indicator Transfer Disbursement Option - Accruals Transfer Disbursement Option - Fractional Cash-in-lieu Transfer Disbursement Option - Residuals c) New Optional Fields with Spaces The values for the fields listed below will be populated with spaces (or zeros where noted) until the ACATS redesign implementation and may be spaces (or zeros) after the redesign. Correction Indicator TPA Number Related Account Number Indicator SWP/PAC Effective Date CDSC Payment Code Disbursement Amount (will be zeros) Payment Date Indicator Retirement Tax Indicator Shareholder Bank Account Number Shareholder Bank Account Type First Check Date Cost Basis Option Payable 1 Security Issue Country Code Payable 1 Security Issue ID Payable 1 Security Issue Check Digit ACATS-Fund/SERV User Guide 18 Revised & Posted November 2007

21 Alternate Payable 1 Indicator Alternate Payable 1 Reason There will be no data for Payables 2-6. d) New or Existing Fields with Modified Values The fields listed below will be populated in the following manner until the ACATS redesign implementation: These fields will continue to be populated after February 22, 1999, based on firm input. ACATS Control Number Before 2/22/99: First 12 positions are current ACATS Control Number; next eight positions are spaces. After 2/22/99: All 20 positions will be filled: 14 for ACATS Control Number, six for Asset Sequence Number. For the first week of implementation there can be a mix of old and new control numbers. Default Registration Indicator Customer Account Number at Firm (Receiver and Deliverer) Customer Account Number at Fund (Receiver and Deliverer) Transfer Share Quantity Transfer Dollar Amount Settlement Date ROA/LOI Value LOI Number/Date Number of Payables Payable 1 Account Number Payable 1 Zip Code 1 if Account Representative Name is "ACATS Default", otherwise will be 0. Customer Account Number from registration if fund/firm indicator is 2 (firm), otherwise will be populated from asset transfer. Customer Account Number from registration if fund/firm indicator is 1 (fund), otherwise spaces. Numeric field will be expanded; right justified and zero filled. Numeric field will be expanded; right justified and zero filled. Settlement date of the ACATS transfer. Numeric field will be expanded; right justified and zero filled. Field will be left justified with spaces following. Field will be 00 if there are no payables or 01 if one payable exists. Payable Account Number if it exists. Payable Zip Code if it exists. ACATS-Fund/SERV User Guide 19 Revised & Posted November 2007

22 Payable 1 Name End Line Indicator Payable 1 Address Option Payable 1 Account Number Indicator Payable 1 Name/Address Line 1-6 Payable Name End Line Indicator it if exists. Payable Address Option if it exists. Payable Account Number Indicator if it exists. Payable Name/Address Line 1 6 if they exist Record Type 019 ACATS-Fund/SERV Transfer Acknowledgment/Rejection The fields in the Record Type 019 that did not change will be populated as they are currently. The expected values for the modified fields are as follows: ACATS Control Number Before 2/22/99: First 12 positions are current ACATS Control Number; next eight positions are spaces. After 2/22/99: All 20 positions will be filled: 14 for ACATS Control Number, six for Asset Sequence Number. For the first week of implementation there can be a mix of old and new control numbers. Transfer Disbursement Option Accruals ** Transfer Disbursement Option Fractional Cash-in-lieu ** Transfer Disbursement Option Residuals ** Fund Reject Code ** Spaces and all new redesign values will be accepted before and after 2/22/99. Spaces and all new redesign values will be accepted before and after 2/22/99. Spaces and all new redesign values will be accepted before and after 2/22/99. Field expanded to three positions to correspond to Fund/SERV reject codes. Code 100 and over will be passed to the firms as 98 (other error) until the ACATS redesign implementation. ** Funds can populate the data fields before the ACATS redesign implementation. The new information will be passed to the firms via ACATS starting on February 22, Record Type 080 ACATS-Fund/SERV Transfer Reminder The six-digit date Record Type 080 Reminder file will remain unchanged. The fields in the Record Type 080 that did not change will be populated as they are currently. The fields listed below will be populated in the eight-digit version in the following manner: ACATS-Fund/SERV User Guide 20 Revised & Posted November 2007

23 ACATS TIF Number Before 2/22/99: First 12 positions are current ACATS Control Number; next two positions are spaces. After 2/22/99: All 14 positions will be ACATS Control Number. For the first week of implementation there can be a mix of old and new control numbers. ACATS Asset Sequence Number Before 2/22/99: Field will be spaces. After 2/22/99: All 6 positions will be populated with ACATS Asset Sequence Number. For the first week of implementation there can be a mix of old and new. TPA (Third Party Administrator) Number Before 2/22/99: Field will be spaces After 2/22/99: Field will remain as spaces unless there is a TPA associated with the ACATS transfer. ACATS-Fund/SERV User Guide 21 Revised & Posted November 2007

24 For More Information For questions or additional information on the ACATS-Fund/SERV interface or the ACATS redesign, please contact NSCC s Participant Services at (212) or the Mutual Fund Hotline at (212) All firms were assigned ACATS coordinators. The list of the coordinators can be found at NSCC s mutual fund website fundserv.nssc.com and the ACATS redesign website acats.nscc.com. The ACATS-Fund/SERV interface record layouts mentioned in this guide are available on the NSCC year 2000 website at formats.nscc.com/nscc. They can also be found on the NSCC mutual fund website at fundserv.nssc.com. Other ACATS redesign information can be found on the NSCC ACATS redesign website at acats.nscc.com. You may also contact NSCC for the layouts at the phone numbers specified in the paragraph above. ACATS-Fund/SERV User Guide 22 Revised & Posted November 2007

25 Glossary of ACATS Terms Deliverer The deliverer is a NSCC participant subscribing to ACATS. The deliverer has the account and must deliver the assets to the receiver. The participant must subscribe to ACATS-Fund/SERV to be part of the ACATS-Fund/SERV link. Non-Standard Transfer This is a partial transfer, residual credit, custody re-delivery, fail reversal or reclaim. The Review and Settle-Prep status occur on one day and settlement occurs next day. Notes: i. It should not make a difference to the fund if the item is a standard or non-standard transfer. The fund should acknowledge as soon as possible as it does in the current system. ii. Reclaims and fail reversals will not be passed through the ACATS-Fund/SERV link. Receiver The receiver is a NSCC participant subscribing to ACATS that will be getting the account assets from the deliverer. The participant must subscribe to ACATS-Fund/SERV to be part of the ACATS-Fund/SERV link. Request Status The account is in request status when a receiver submits a transfer request to the deliverer through ACATS. Review Status The account is in review status when assets were submitted by the deliverer and then passed to the receiver for the receiver s review. When the receiver gets the asset list, the receiver can: 1. Do nothing and the asset will transfer in two days for a standard transfer or next day for a non-standard transfer. 2. Reject the transfer because something in the account does not meet with the firm s credit policy or the receiver will not accept the non-standard transfer. 3. Accelerate the settlement of the transfer by one day if it is a standard transfer. Settle-Prep Status The account is in settle-prep status when the account transfer is ready for settlement. The transfer instructions for the account assets will be sent to their proper settling organizations. At this time, the funds would get the Record Type 018 registration information from Fund/SERV. ACATS-Fund/SERV User Guide 23 Revised & Posted November 2007

26 Settlement Day The account transfer will take affect on settlement day. The deliverer will be debited and the receiver credited in money settlement if the ACATS transfer is valued. Broker to broker transfers are valued; if a bank is on one side of the transfer there will be no money settlement charge. When the fund acknowledges, there will be a money settlement reversal crediting the deliverer and debiting the receiver the original value of the asset. If this occurs on or before settlement date, the net charge to the ACATS participant will be zero. The settlement date for standard transfers will be no less than two days after the transfer request. The settlement date for non-standard transfers will be no less than one day after the transfer request. Standard Transfer This is a full transfer. Normally there is one day for Review status, one day for Settle-Prep status, and then the item settles two days later. This transfer could be accelerated so that Settle-Prep occurs the same day as the Review status. ACATS-Fund/SERV User Guide 24 Revised & Posted November 2007