DTCC's Managed Accounts Service provides a central gateway for seamless communication of some of the most important information required to establish and maintain managed accounts.

Overview

DTCC's Managed Accounts Service provides a central gateway for seamless communication of some of the most important information required to establish and maintain managed accounts. It links all trading parties to one standardized platform through a single connection. The service - the first of its kind - automates the flow of data for a wide variety of managed accounts products while reducing errors and operational risks.

The managed accounts industry has grown dramatically, but still relies on paper-intensive, manual processes to initiate and manage the portfolios of high-net-worth investors. With DTCC's Managed Accounts Service, information is exchanged in the form of standard messages through one central platform, so errors, delays and operational costs are greatly minimized. And DTCC's time-tested infrastructure provides unparalleled data integrity, the most advanced data recovery capabilities and a self-healing, highly resilient telecom network to facilitate safe and secure data exchange.

Who Can Use this Service

DTCC's Managed Accounts Service is for investment managers, sponsoring broker/dealers and service providers who create and administer managed accounts. The service is open and accessible to all industry participants through an existing DTCC connection or the Internet.

Benefits

DTCC's Managed Accounts Service offers a number of advantages:

• Save time and money by streamlining back office processes and reducing high fixed costs associated with opening and servicing managed accounts.
• Eliminate time-consuming paperwork, manual processing and paper-intensive record-keeping, which can result in errors and pose risk.
• Invest funds more quickly with an automated service that eliminates delays in putting client funds to work.
• Manage a higher volume of accounts at a lower cost, so you can grow your business and offer more customized products and services.
• Protect your investors with our telecom network's unparalleled resiliency and security to assist you in keeping your customer records private and secure.
• Reduce operational risk in an environment where one error can have tremendous financial consequences.
• Streamline connectivity through a self-healing, secure network that links you, end-to-end, to your trading partners.
• Grow your business with confidence using one of the most efficient and reliable financial processing infrastructures in the world.

How the Service Works

DTCC's Managed Accounts Service currently supports the exchange of the following information between sponsoring broker/dealers and investment managers using standardized messages for:

Account Set Up  --  This standard message includes all the data needed to set up a new account in one easy step, including client profile, risk tolerance, tax status, how the account will be funded, restrictions and authorization to trade as of a particular date.

Account Maintenance --  Client account information, deposit funding and withdrawal notifications, such as addition or subtraction of assets from an account, and account termination notifications simplify day-to-day account maintenance activities.   

Client Profile Update -- Changes to a client's investment strategy, sponsor program, distributions and dozens of other updates can be implemented quickly with minimum risk of error.  An added benefit is that these messages make it easy to meet regulatory requirements for periodic review and updates to investor accounts, and you have a documented record through our reliable network.

Messages flow through DTCC's secure infrastructure, and go through an automated, four-step process:

1. Entitlement provides confirmation of sender and receiver and validates a relationship between both parties.
2. Validation confirms that messages conform to MMI communications standards.
3. Audit provides detailed audit trails of messages processed, including time stamps and routing information.
4. Routing provides connectivity between sponsors and investment managers.

DTCC plans to continually extend the functions and value of the service, working hand-in-hand with participants to develop solutions that improve operations and minimize risk.

DTCC's Managed Accounts Service is built on an open architecture designed for easy access. Participants may connect to the service through an existing DTCC connection or over the Internet. The service utilizes XML-compliant messages developed by industry leaders and The Money Management Institute. XML is a highly recognized and flexible messaging format that can easily be used by a broad range of participants.

For More Information

Call us at (212) 855-8877 with questions or for a demonstration of the Managed Accounts Service.