Advanced Account Transfers

ACAT vs NON-ACAT What is an ACAT: Automated Client Account Transfer – Not manually processed – Can’t be liquidated What is a Non-ACAT: Non-Automated Transfer – Manually processed – Can be liquidated

Mutual Fund Transfers Paperwork completed differently for In-Kind vs liquidating mutual fund accounts Transfer is initiated differently in Netx360 – For liquidation – initiate as Full Incoming Transfer (unless you are only transferring part of the shares) – For In-Kind – initiate as Partial Incoming Transfer

Transfer Approval Process When an account transfer is entered in Netx360, it enters our work basket in Work Corner. The transfer request is opened and reviewed along with the paperwork that was submitted for the transfer. If there are any issues, the rep’s office is contacted to discuss what is needed to get the request in good order. If there aren’t any issues, the paperwork is ‘attached’ to the request in the system and approved. It then goes to Pershing’s transfer department for review.

Following up on Transfers There are two places to check the status of transfers: – IFA Screen in Client’s account – Work Status screen Common Transfer Status levels – Pending Paperwork: The paperwork has not been received and/or linked to the transfer request – Released/Request: Pershing has reviewed the transfer paperwork and released the request to the delivering company – Settling: Pershing has received the assets and they are being posted to the account – Completed: the assets have been received and posted to the account. – Rejected: The transfer won’t happen.

Rollovers from Qualified Plans Delivering firm is requesting a Letter of Acceptance from Pershing – Have client complete an Account transfer form, along with the plan’s paperwork Be sure to use Pershing’s address for where to send the check – Initiate a ‘rollover’ in Netx360 – Send a copy of transfer form, plan’s form and account statement to FHC

Differing Account Titles - Retirement IRA, IRA Rollover, Simple IRA, SEP/SARSEP can all be transferred into an IRA account. Note: A Simple IRA has to have been funded at least 2 years before it can be transferred into an IRA. A Roth IRA can only transfer to another Roth IRA Inherited IRAs can only transfer into another Inherited IRA. The original IRA owner (the deceased) has to be the same person.

Transfers of Inherited IRAs From another brokerage firm– a beneficiary/inherited account would need to be set up at the delivering firm before the transfer is initiated. From an Annuity Company – Submit an Account Transfer form with a copy of the death certificate and account statement. The transfer from should be clearly marked ‘Beneficiary Transfer’ in Steps 3 & 4. From a Transfer Agent/DRS Transfers – the stock needs to be re-registered into the beneficiary’s name before submitting the transfer request.

Differing Account Titles – Retail Accounts Retail accounts are not as restrictive when it comes to differing registrations. Most transfers can be accomplished by having the clients sign a Letter of Instruction. All account owners from both accounts should sign and date the LOI. – Please transfer my ____________ account held at _________, account number __________ into my ___________account, account number J___________ held at Pershing.

Differing Account Titles – Additional requirements Individual to Joint or Joint to Individual – Need LOI signed by both Joint owners Joint to Individual due to death of joint owner – Need LOI signed by surviving account owner and copy of death certificate Individual or Joint to Trust – Need LOI signed by account owners UTMA to Individual – Need LOI signed by Custodian releasing funds due to account owner now being of age & Proof of age (Birth Certificate or Driver’s License) Name difference due to marriage/divorce – Need LOI signed twice by account owner, once in each name & copy of marriage certificate or divorce decree

Accounts with Trustees or Custodians When entering transfers into NetX360 where the paperwork was signed by a trustee or custodian, be sure to enter the name of the person signing the paperwork in the ‘Comments’ field under the question ‘Do account registrations match?’. Example: ‘John Smith, TTEE signed the transfer form’ or John and Amy Smith, TTEEs signed the transfer form’