March 13, 1997
TO: BANK AND TRUST ADVISORY COMMITTEE No. 3-97
BROKER/DEALER ADVISORY COMMITTEE No. 5-97
OPERATIONS MEMBERS No. 7-97
TRANSFER AGENT ADVISORY COMMITTEE No. 12-97
RE: TRANSFER OF RETIREMENT ASSETS PILOT GROUP MOVES INTO
PRODUCTION
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As you are aware, the National Securities Clearing Corporation (NSCC) implemented its
Retirement Assets Transfer Service on November 18, 1996. Since that time, the fund groups
which participated with the NSCC in the pilot effort to develop the Retirement Asset Transfer
Service have been exhaustively testing the functionality, and, more recently, many of these pilot
participants have begun using the service to conduct live, production-level transfers of
retirement accounts. Additionally, the remainder of the pilot group is expected to be utilizing
the service to perform live transfers by no later than early 2nd Quarter, 1997.
The NSCCs Retirement Asset Transfer service is a centralized, automated facility for
the transaction and settlement of IRA account transfers from one mutual fund company to
another. Its advantages include automated interface with fund company transfer agents, a fully
defined, disciplined processing cycle, and settlement via the NSCCs Consolidated Net
Settlement facility.
Mutual fund companies wishing to utilize the Retirement Asset Transfer service are
urged to contact the NSCC regarding participation. The NSCC is seeking to encourage
participation in and use of this service, and can provide mutual fund companies with
specifications, documentation and support material to aid in the development process.
If your fund complex is interested in participating in the NSCCs Retirement Assets
Transfer service, contact your NSCC account manager, or call the NSCCs Mutual Fund Hotline
at 212/412-8893. If you have questions or concerns about the automated transfer of mutual
fund IRA accounts, please do not hesitate to contact the undersigned at 202/326-5848.
Kevin Farragher
Director - Operations
Distribution & Service
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