The Depository Trust & Clearing Corporation (DTCC) has launched a new capability within its Wealth Management Services (WMS) business to streamline the processing of internal account transfers for alternative investments.
With DTCC’s Alternative Investment Products (AIP) service, market participants can now fully automate account transfers for non-traded real estate investment trusts (REITs) and business development corporations (BDCs).
This allows broker/dealers to systematically manage the complex activities required to re-register accounts and internally transfer investors’ shares between closing and opening accounts, as needed.
Currently, account transfer transactions are largely manual operational processes – incurring paper trails, multiple registrations and numerous inter-departmental hand-offs – often taking broker/dealers several weeks to complete.
The AIP enhancement eliminates manual processing by providing a standardized, automated solution that processes transactions, straight-through, in a single day. Broker/dealers can transmit data over a secure and reliable network, reducing risk and increasing efficiency and scalability for continued business growth.
The new solution addresses a long standing challenge identified by members of DTCC’s AIP Roundtable, a group of alternative investment industry decision makers. DTCC’s WMS team collaborates with its AIP Roundtable members regularly to create and enhance services for the benefit of the alternative investment markets.
"With AIP’s newest feature, we’re able to simplify the account transfer process for broker/dealers and their clients, and help alternative investment companies gain efficiencies that support the market’s growth," said Ann Bergin, Managing Director, WMS at DTCC. "Our collaboration with the AIP Roundtable members helps ensure that we are meeting the needs of our current and prospective clients."
WMS and its AIP service are offerings of DTCC’s National Securities Clearing Corporation (NSCC) subsidiary. Today, there are 382 clients – representing fund administrators, funds, broker/dealers and custodians – benefitting from the AIP service.