OPERATIONS

OPERATIONS

New Representative Frequently Asked Questions

ACCOUNT TRANSFERS

ONCE A BROKER TO BROKER (ACAT) ACCOUNT TRANSFER IS SUBMITTED, HOW LONG DOES THE TRANSFER TAKE?

  • An ACAT can take 5 to 7 business days. There may be instances where the transfer may take 7 to 10 business days due to corrections made in the ACAT system.

HOW CAN I CHECK MY ACCOUNT TRANSFERS THAT WERE SUBMITTED?

TO CHECK THE STATUS OF YOUR ACCOUNT TRANSFER:

  • Fidelity: Wealthscape> Service > Transfer of Assets (TOA) > View/Manage Asset Transfers
    • You can review by All, Not in good order, Rejected/Action Required, Closed
    • Select View /Manage Asset Transfers and view a selected status
  • Pershing: NetX360 > Accounts Tab > IFA > All IFAs
    • Select Incoming Account Transfers

IF I SUBMIT A TRANSFER REQUEST FROM A BANK OR CREDIT UNION, WHAT IS THE TIME FRAME?

  • A transfer from a Bank or Credit Union is considered a Non-ACAT and can take 6 to 8 weeks or greater. There is no defined time frame.

WHAT IS THE DIFFERENCE BETWEEN AN ACAT & NON-ACAT?

  • ACAT stands for Automatic Customer Account Transfer.
    • An ACAT transfer is the transferring of customer accounts from one member firm to another through an electronic system via the National Securities Clearing Corp (NSCC).
    • The system gives the contra firm the customer is transferring from (also called the “delivering firm”) a certain time frame in which to approve and transfer the account.
    • As an ACAT progresses it follows certain steps so that on day 7 or 10 the transfer is complete.
  • A Non-ACAT is a Non-Automated Customer Account Transfer.
    • A Non-ACAT transfer is the transferring of customer accounts from an institution that does not belong to the ACAT System, such as an Insurance Company, Bank or Credit Union. Such transfers are considered “manual” transfers.
    • Unlike the ACAT system, since a Non-ACAT is a manual transfer, there is no specific time frame for the account to transfer but usually it takes 6 to 8 weeks.

IS ANY ADDITIONAL DOCUMENTATION NECESSARY IF I AM TRANSFERRING AN ACCOUNT THAT HOLDS AN ALTERNATIVE PRODUCT SUCH AS A REIT?

  • Fidelity > Yes. The client will need to include an Alternative Investments Addendum and Custody Agreement with the ACAT Transfer document
  • Pershing > No additional documentation is needed.

CAN I CHANGE THE REGISTRATION OF A JOINT TO TRUST?

  • No. A new account must be established. An account registration may only be adjusted for the following account types:
    • Minor UTMA/UGMA to Individual upon reaching age of majority
    • Joint with Rights of Survivorship to the Individual for the Survivor
    • Change of Trustee on a Trust

ONCE I SUBMIT ACCOUNT DOCUMENTS HOW CAN I SEE IF THEY WERE POSTED TO THE ACCOUNT?

To check account documents, use the following path:

  • Fidelity: Wealthscape> Service >Service&Workflow> Business Process Manager (BPM)
    • Select all document types, enter brokerage account number with no hyphen and in all CAPS, for date range select all days in drop down, select search
  • Pershing:  NetX360 > Accounts Tab > Single Account > Documents > Imaged Documents

HOW LONG DOES IT TAKE FOR DOCUMENTS TO BE CODED TO THE ACCOUNT?

  • Documents are imaged in the following time-frame:
    • Fidelity: Document shows as soon as uploaded by WIS
    • Pershing: 24 hours.
    • Note:  All documents must be imaged to the account for third party payouts.

PAYOUT

WHAT ARE THE CUT-OFF TIMES FOR FUND PAYOUTS?

  • Cut-off times are as follows:

FIDELITY


Type Cut-Off Time (PT)

Check

For Overnight:

ACH

Wires

Journals

12:00

12:00

12:00

12:00

12:00

PERSHING


Type Cut-Off Time (PT)

Check

For Overnight:

ACH

Wires

Journals

11:30

11:00

10:30

12:30

11:30


WHAT IS THE DIFFERENCE BETWEEN A WIRE AND AN ACH AND IS THERE A COST FOR THIS REQUEST?

  • Wires:  Wires are money movements via the Fed Fund Wire system. AWire, once approved and submitted is delivered to the receiving bank the same day. There is a cost to wire funds.
    • Note: While the receiving bank receives the funds the same day, some institutions credit the dollars after the close of business and therefore, may not reflect until the following business day.
    • See the Charges and Fees for Fidelity or Pershing.
  • ACH: Automated Clearing House (“ACH”) is a system is used by banks to process receive and pay on checks. In lieu of a check, monies are submitted through the ACH system using the bank account number and ABA/Routing number usually found on the clients check. These funds usually arrive at the bank with 24 to 48 hours. There is no cost to ACH funds from a client account to a bank account.

WHEN IS A LETTER OF AUTHORIZATION (LOA) REQUIRED TO WITHDRAW FUNDS FROM AN ACCOUNT?

  • A letter of authorization is required as noted in the chart below:
FIDELITY SAME NAME TO SAME NAME THIRD PARTY

Check No LOA Required. Check issued as account reads Yes. LOA signed by all owners on the account.  If request is to pay bill or invoice, copy of the bill or invoice must be included

ACH Yes. LOA signed by all owners on the account Not Permitted

Wire Funds

 

Yes. LOA signed by all owners on the account Yes. LOA signed by all owners on the account with reasonable explanation attached.  Copy of any payment including escrow must be attached.

 

PERSHING SAME NAME TO SAME NAME THIRD PARTY

Check No LOA Required. Check issued as account reads Yes. LOA signed by all owners on the account

ACH Yes. ACH Form required for setup Not Permitted

Wire Funds

 

Yes. LOA signed by all owners on the account For the benefit of the client, such as an escrow account only. Signed by all owners on the account

WHAT IS REQUIRED TO SEND FUNDS FROM A RETIREMENT ACCOUNT?

    • An IRA distribution form is required to distribute funds from a Retirement account to the owner for both Fidelity and Pershing.  IRA Distribution forms maybe located as follows:
        • Fidelity: WIS Website > Fidelity Forms > Fidelity Cashiering-Premier Select Retirement Accounts > Consolidated IRA Distribution or One-Time Distribution Request
        • Pershing:  WIS Website > Pershing Forms > Pershing Miscellaneous Forms Most Frequently Used > IRA Distribution Form.

      CASH MANAGEMENT (Debit Card & Check-Writing)

      I SUBMITTED A CHECK WRITING APPLICATION…HOW LONG DOES IT TAKE FOR MY CLIENTS TO GET THEIR CHECKBOOK?​

          • Once the application is approved, clients should have their checkbooks within 7 to 10 business days from shipment date. This is for both Fidelity Brokerage Access and Pershing.

      CERTIFICATES

      WHERE DO I SEND CERTIFICATES?

      • Certificates should always be overnight or U.S. Postage Insured:
      • Legal, Pending Paper or additional documents send to:
      • Fidelity Clearing & Custody Solutions

Newport Office Center III
Attention Securities Processing
499 Washington Blvd, 5th Floor
Jersey City, NJ 07310

Streetname, good order (including stock power in lieu of signature)

DTCC/BDS
570 Washington Blvd
Jersey City, NJ 07310

        • Pershing > Pershing LLC

Attn Securities Receive
One Pershing Plaza
Jersey City NJ 07299

          • Certificates should be signed by all owners on the certificate and place the name of the clearing firm < NFS or Pershing > on the attorney line.

DEPOSITS

WHO SHOULD MY CHECK BE MADE PAYABLE TO?

  • Note: include acct number on the memo line
  • Checks should be made payable as follows:
    • Fidelity:
    • Client Name if from a third party.
    • Fidelity Cust FBO “Client Name”
    • Fidelity
    • Pershing
    • Pershing
    • Pershing LLC
    • Pershing FBO “Client Name
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