[11390]
November 5, 1999
TO: BANK AND TRUST ADVISORY COMMITTEE No. 25-99
BROKER/DEALER ADVISORY COMMITTEE No. 30-99
OPERATIONS COMMITTEE No. 41-99
RE: BROKER/DEALER ADVISORY COMMITTEE Y2K CONTINGENCY PLAN
______________________________________________________________________________
The ICI Broker/Dealer Advisory Committee recently established a task force to discuss
contingency planning in the event that a National Securities Clearing Corporation (NSCC) participant
(or their service provider) experienced operational difficulties during the millennial crossover weekend.
The task force developed alternative processing guidelines to specifically address a situation in which a
fund or a firm is unable to utilize NSCC Fund/SERV for trade placement and settlement. These
guidelines have been summarized in the attached Broker/Dealer Advisory Committee Y2K Contingency
Plan.
A key component of the plan is the development of a communication network for trading
partners to notify each other when an outage occurs. The task force recommended the development of
a contact list to assist in the communication process. Contacts at funds and firms will be responsible for
informing their trading partners when they are unable to use Fund/SERV and use the contact list to
facilitate this effort. Once this communication has been made, contacts will then ensure that the
contingency plan is activated.
The Investment Company Institute will assist in building the designated contact list. If you wish
to designate a contact at your organization, please complete the attached contact form and fax to Patricia
Weems at the ICI, fax number 202/326-5853. Completed contact forms should be returned as soon as
possible but no later than November 22, 1999. Please be sure to list contacts that have been specifically
designated to communicate and respond to NSCC Fund/SERV trading issues
Contact names will be compiled on a spreadsheet and available on the Institute’s member
website (http://www.members.ici.org). The ICI member’s website is a private site restricted to
registered users only. Access can be gained after ICI approval of a submitted registration request.
Members who do not have ICInet access codes may request them by going to the home page
(referenced above) and completing the electronic enrollment form. Your access code will be assigned to
you within 48 hours.
Please note that the BDAC Y2K Contingency Plan is only a guideline. Agreements may
currently exist between fund companies and broker/dealer firms that may either prohibit or alter the use
of the recommended procedures outlined in this document. Also, due to low trading volumes some
firms or funds may decide to process and settle trades manually until service has been restored.
The Broker/Dealer Advisory Committee wishes to recognize Tony Green of AIM Fund
Services, for his efforts as chairman of the task force. Additionally, we also wish to thank Nino Palermo
of American Funds Service Company for drafting the contingency plan. We extend our appreciation to
Tony, Nino and the task force (see-attached) for their time and effort in preparing the Y2K Contingency
guidelines.
If you have any questions regarding this document, please contact Justine Phoenix at 202/326-
5850.
Mark L. Harris Justine Phoenix
Executive Vice President and COO Director - Operations/
Van Kampen Investor Services, Inc. Distribution and Service
Broker/Dealer Advisory Committee Chairman
Attachments
INVESTMENT COMPANY INSTITUTE
BROKER/DEALER ADVISORY COMMITTEE
YEAR 2000 CONTINGENCY PLANNING TASK FORCE
Tony Green – AIM Fund Services, Inc.
Chairman
Robert Adams – National Financial Services Corp.
Ken Beard – Van Kampen Investor Services
Mike Beaton – SunGard Shareholder Services
Bernie Brockgreiten – Putnam Investor Services
Elisa Colkitt – Delaware Service Company
James Coscia – Paine Webber Inc.
LuJean Craig –Fidelity Investments
John Cronin – Alliance Fund Services
Colleen Daly – Merrill Lynch Financial Data Services, Inc.
Douglas Filter-Vanguard
Eileen Gilfedder – First Data Investor Services
Tim Griesmer – Putnam Investor Services
Bob Griffin –Fidelity Investments
Kelle Hennier –DST
Philip Hetzel – Federated Investors
Cara Hutchinson –Franklin Templeton
George Kelly – NSCC
Dennis Macksoud-MFS
Chris Mauro – National Financial ServicesCorp.
Mary Lisa McDermott – Vanguard
Sandy McNair – Vanguard
Nino Palermo - American Funds Service Company
Al Rubin – Solomon Smith Barney Asset Management
Barbara Simon – NSCC
Randy Solomon – NSCC
Al Vayda – Prudential Securities, Inc.
David Warsoff –Goldman Sachs Asset Management