2. Bank ACATS BDUG Annual Meeting October 24,2005 Scottsdale, AR

3. 3 Bank ACATS Program Topics: History of Program Primary Differences Benefits of Participation Current Bank/Stats Current Initiatives Questions Topics: History of Program Primary Differences Benefits of Participation Current Bank/Stats Current Initiatives Questions

4. 4 History of Program Pilot for Banks 1999 Originally 7 Banks Participating Good Faith Effort – Participation Not Mandated Most Brokerage Firms Participated in Pilot DTCC Opened Program to all Banks June 1999 Pilot for Banks 1999 Originally 7 Banks Participating Good Faith Effort – Participation Not Mandated Most Brokerage Firms Participated in Pilot DTCC Opened Program to all Banks June 1999

5. 5 Primary Differences Good Faith Effort – Not Mandated Paperwork Required Assets Move Free of Payment No Valued Fails Good Faith Effort – Not Mandated Paperwork Required Assets Move Free of Payment No Valued Fails

6. 6 Benefits Customer Satisfaction ­Reduced Timeframe to Transfer Account ­Initial Experience a Positive One Competitive Advantage Cost Reduction ­Follow up Process ­Pending & Reversal of Transactions Ability to Trade and Collect Fees Sooner Customer Satisfaction ­Reduced Timeframe to Transfer Account ­Initial Experience a Positive One Competitive Advantage Cost Reduction ­Follow up Process ­Pending & Reversal of Transactions Ability to Trade and Collect Fees Sooner

7. 7 Benefits Electronic Notification of Assets and Cash Standardization/Automation Ability to Accelerate Process Residual Balances Processing Contacts within Financial Community Electronic Notification of Assets and Cash Standardization/Automation Ability to Accelerate Process Residual Balances Processing Contacts within Financial Community

8. 8 Current Users Bank of America Bank One Trust Co. Bank of NY Citigroup PVT Bank City Nat’l Bank Comerica Country Trust Bank First American Trust Fleet Bank FNB Omaha Glenmede Trust Co. Bank of America Bank One Trust Co. Bank of NY Citigroup PVT Bank City Nat’l Bank Comerica Country Trust Bank First American Trust Fleet Bank FNB Omaha Glenmede Trust Co. Huntington Nat’l IBT Key Bank Mellon Bank Nat’l City Bank Reliance Trust SEI Trust Co. State Street Bank SunTrust Bank UMB Union Bank of Cal Wachovia

9. 9 Volumes (Transactions) YearTIFSAssetsSettled % Increase Settled 20014,8007,20058,800- 20026,90016,80090,00053% 20039,60028,800114,00027% 200414,40036,000138,00021% 200515,00054,000156,0008%

10. 10 ACATS Process Overview ACATS IPS/Annuities Stocks & Bonds Cost Basis Information Mutual Funds 6-7 Day Cycle Snap Shot of Assets currently held in the Account Mutual Fund Companies

11. 11 Current Initiatives Trust System Automation Discussions with Regulatory Agencies Cost Basis / IPS Mutual Funds as Participants Trust System Automation Discussions with Regulatory Agencies Cost Basis / IPS Mutual Funds as Participants

12. Cost Basis Reporting Service

13. 13 Cost Basis Reporting Service Topics: General Description of CBRS - What is it? Benefits of CBRS Current CBRS Users / Volume CBRS Fees Topics: General Description of CBRS - What is it? Benefits of CBRS Current CBRS Users / Volume CBRS Fees

14. 14 What is CBRS? The Cost Basis Service (CBRS is an automated system that provides brokerage firms, banks and other financial organizations the ability to transfer cost basis information from one firm to another on any asset transfer through ACATS Passes Asset and Tax Lot information for customer to calculate tax liability (gain & loss) Available for a wide range of assets The Cost Basis Service (CBRS is an automated system that provides brokerage firms, banks and other financial organizations the ability to transfer cost basis information from one firm to another on any asset transfer through ACATS Passes Asset and Tax Lot information for customer to calculate tax liability (gain & loss) Available for a wide range of assets

15. 15 Benefits of CBRS Expands firm’s customer service Automates the transfer of Cost Basis data Centralizes and standardizes the information transfer Eliminates the manual re-entry and/or recalculation of Cost Basis portfolio information Significantly reduces cost associated with obtaining and maintaining Cost Basis data Expands firm’s customer service Automates the transfer of Cost Basis data Centralizes and standardizes the information transfer Eliminates the manual re-entry and/or recalculation of Cost Basis portfolio information Significantly reduces cost associated with obtaining and maintaining Cost Basis data

16. 16 Current CBRS Users Currently 27 firms using CBRS Merrill LynchLinsco Private Ledger Citigroup Janney Montgomery Scott UBS Financial Pershing Piper JaffrayHSBC Securities Stifel NicolausRobert Baird First ClearingDavenport Wells Fargo InvestmentsHuntleigh Securities Ferris, Baker WattsSterne, Agee & Leach National InvestorsHilliard Lyons Wedbush Morgan Morgan Stanley DW Legent Clearing Bear Stearns Scott & StringfellowRaymond James H & R BlockMorgan Keegan National Financial Currently 27 firms using CBRS Merrill LynchLinsco Private Ledger Citigroup Janney Montgomery Scott UBS Financial Pershing Piper JaffrayHSBC Securities Stifel NicolausRobert Baird First ClearingDavenport Wells Fargo InvestmentsHuntleigh Securities Ferris, Baker WattsSterne, Agee & Leach National InvestorsHilliard Lyons Wedbush Morgan Morgan Stanley DW Legent Clearing Bear Stearns Scott & StringfellowRaymond James H & R BlockMorgan Keegan National Financial

17. 17 Current CBRS Volume Approximately 175,000 CBRS records processed on a daily basis Approximately 35,000 assets and 140,000 tax lot records Average 4.0 tax lots per asset Approximately 175,000 CBRS records processed on a daily basis Approximately 35,000 assets and 140,000 tax lot records Average 4.0 tax lots per asset

18. 18 CBRS FEES 9 cents per asset record received (Receiver firm only) Can have unlimited amount of associated Tax Lots per asset 9 cents per asset record received (Receiver firm only) Can have unlimited amount of associated Tax Lots per asset

19. 19 CBRS Via PC Web Screen Input capability available Expanded file upload capability for CBRS Important Notice A#5999 dated March 14, 2005 Screen Input capability available Expanded file upload capability for CBRS Important Notice A#5999 dated March 14, 2005

20. ACATS/IPS Overview

21. 21 What is ACATS/IPS? A link between the ACATS system and the IPS system to allow insurance assets to be included in a ACATS transaction. IPS will be the link to the Insurance Carriers, as FundServ acts as the link for mutual fund assets in ACATS/FundServ. ACATS/IPS automates broker/dealer change process between Broker/Dealers and Insurance Carriers. A link between the ACATS system and the IPS system to allow insurance assets to be included in a ACATS transaction. IPS will be the link to the Insurance Carriers, as FundServ acts as the link for mutual fund assets in ACATS/FundServ. ACATS/IPS automates broker/dealer change process between Broker/Dealers and Insurance Carriers.

22. 22 ACATS/IPS - Goal “To automate the Broker/Dealer change process for Annuity contracts between Broker/Dealers, Banks and Insurance Carriers” by leveraging the ACATS and IPS processing systems”

23. 23 ACATS/IPS - Benefits Elevate level of Customer Service Eliminate “Lost” Annuity Contracts & Revenue Automate Transaction Processing Automate Notification of Transfer True “Paperless” Process Elevate level of Customer Service Eliminate “Lost” Annuity Contracts & Revenue Automate Transaction Processing Automate Notification of Transfer True “Paperless” Process

24. ACATS/IPS Process Overview ACATS IPS Receiving Broker/Dealer Insurance Carrier Delivering Broker/Dealer 1.TI 2. AT 3. IR3. IFT 3.IR 4. IFT (Accept/Reject Confirmation) IFT (Corrective Action) 4. IFT (Accept/Reject Confirmation) IFT (Corrective Action) IFT (Cor. Action Confirm)

25. 25 ACATS/IPS – Production Insurance Carriers: Allstate The Hartford Pacific Life Insurance Broker/Dealers: Merrill Lynch Piper Jaffray (Beta) Robert W. Baird (Beta) Stifel Nicolaus (Beta) Wachovia Securities (Beta) Wells Fargo Investments (Beta) Insurance Carriers: Allstate The Hartford Pacific Life Insurance Broker/Dealers: Merrill Lynch Piper Jaffray (Beta) Robert W. Baird (Beta) Stifel Nicolaus (Beta) Wachovia Securities (Beta) Wells Fargo Investments (Beta)

26. 26 ACATS/IPS – Website Info insurance.dtcc.com IFT Record Layouts Standard Usage ACATS/IPS User Guide Selling Agreement Samples Fact Sheets acats.nscc.com ACATS Record Layouts ACATS/IPS User Guide insurance.dtcc.com IFT Record Layouts Standard Usage ACATS/IPS User Guide Selling Agreement Samples Fact Sheets acats.nscc.com ACATS Record Layouts ACATS/IPS User Guide ? ? ? ? ?

27. 27 Strategic Initiatives of SIA CAT Division Increasing financial institutions participation in ACATS Banks – Sub-committee meeting every 3 weeks Coordinated by Bill Kapogiannis Insurance Companies – Continue to grow ACATS/IPS interface Mutual Funds Liquidations Potentially shortening the ACATS cycle – 7 to 4 days Increasing financial institutions participation in ACATS Banks – Sub-committee meeting every 3 weeks Coordinated by Bill Kapogiannis Insurance Companies – Continue to grow ACATS/IPS interface Mutual Funds Liquidations Potentially shortening the ACATS cycle – 7 to 4 days

28. 28 Proposed Process Change The ACATS process for full account transfers facilitates fast and efficient transfer of client assets. Both the investor and the member firms benefit from speed and efficiency with which client transfer request can be communicated, validated and settled through ACATS. The industry as a whole would realize significant processing efficiencies and standardization provided non-ACAT firms fully participated in the ACATS process Specifically, Mutual Fund Companies and current ACATS participants would greatly increase processing efficiencies and standardize the transfer process by leveraging the ACATS functionality currently available to Banks (and other non- broker/dealer firms) for non-valued transfers. The ACATS process for full account transfers facilitates fast and efficient transfer of client assets. Both the investor and the member firms benefit from speed and efficiency with which client transfer request can be communicated, validated and settled through ACATS. The industry as a whole would realize significant processing efficiencies and standardization provided non-ACAT firms fully participated in the ACATS process Specifically, Mutual Fund Companies and current ACATS participants would greatly increase processing efficiencies and standardize the transfer process by leveraging the ACATS functionality currently available to Banks (and other non- broker/dealer firms) for non-valued transfers.

29. 29 Benefits Mutual Fund Companies would be able to utilize the Partial Transfer Receive and Partial Transfer Deliver functions to move client assets. Mutual fund companies would no longer be dependent upon instructions from the broker/dealer. Increase the level of client satisfaction through greater reliability and speed Mutual Fund Companies would be able to utilize the Partial Transfer Receive and Partial Transfer Deliver functions to move client assets. Mutual fund companies would no longer be dependent upon instructions from the broker/dealer. Increase the level of client satisfaction through greater reliability and speed

30. 30 Benefits con’t… There would be a diminished risk of re-registered shares left unaccounted for at the fund companies; these positions become seemingly lost to the client Retirement transfers between funds and broker/dealers would no longer require the creation of intermediary accounts Participant firms and Mutual Fund Companies would have a standardized, automated process for handling non-ACATS transfers by introducing them into existing ACAT functionality. There would be a diminished risk of re-registered shares left unaccounted for at the fund companies; these positions become seemingly lost to the client Retirement transfers between funds and broker/dealers would no longer require the creation of intermediary accounts Participant firms and Mutual Fund Companies would have a standardized, automated process for handling non-ACATS transfers by introducing them into existing ACAT functionality.

31. 31 Next Steps Create industry committee. The following fund companies are participating: Putnam Fidelity Janus Develop detailed process flow and requirements Create industry committee. The following fund companies are participating: Putnam Fidelity Janus Develop detailed process flow and requirements

32. LIQUIDATION OF MUTUAL FUNDS VIA THE ACAT SERVICE IN TODAY’S ENVIRONMENT SPEED AND ACCURACY IS THE KEY IN TODAY’S ENVIRONMENT SPEED AND ACCURACY IS THE KEY

33. 33 ISSUES RECEIVING AND DELIVERING FIRMS DO NOT HAVE A STANDARD OR UNIFORM PRACTICE FOR LIQUIDATING RECEIVER ADJUSTED MUTUAL FUNDS; INVESTORS HAVE LIMITED UNDERSTANDING OF WHY CERTAIN HOLDINGS CANNOT BE TRANSFERRED OR HELD AT NEW BROKER DEALER. RECEIVING AND DELIVERING FIRMS DO NOT HAVE A STANDARD OR UNIFORM PRACTICE FOR LIQUIDATING RECEIVER ADJUSTED MUTUAL FUNDS; INVESTORS HAVE LIMITED UNDERSTANDING OF WHY CERTAIN HOLDINGS CANNOT BE TRANSFERRED OR HELD AT NEW BROKER DEALER.

34. Branch Offices Processes Operations Depts. MUTUAL FUNDS LIQUIDATIONS

35. 35 WHAT WE THINK WE NEED Develop new mechanism/transaction type; Only Full ACATS will be eligible; Firms need to establish consistency; Firms will need internal control to prevent selling asset types not eligible Develop new mechanism/transaction type; Only Full ACATS will be eligible; Firms need to establish consistency; Firms will need internal control to prevent selling asset types not eligible

36. 36 Next steps WHITE PAPER NEXT MONTH Comments welcomed and encouraged WHITE PAPER NEXT MONTH Comments welcomed and encouraged

37. 37 QUESTIONS ?