DTCC Adds Automation to Payment Solution

The Depository Trust & Clearing Corporation (DTCC) has added the ability to automate the processing and net settlement of third-party negotiated fees to its DTCC Payment aXis mutual funds service.
By Jake Safane(2147484770)
The Depository Trust & Clearing Corporation (DTCC) has added the ability to automate the processing and net settlement of third-party negotiated fees to its DTCC Payment aXis mutual funds service.

DTCC Payment aXis automates the transmission of invoices involved in retirement plan and broker-controlled accounts for fund companies, broker-dealers and other intermediaries that are members DTCC”s subsidiary, National Securities Clearing Corporation (NSCC). The service can now also automate net settlement of fees including including Sub-Accounting, Retirement/Bank Trust and Networking Service Fees.

DTCC made these automation improvements following input from industry groups like the Omnibus Invoicing Task Force, which includes representatives of DTCC, mutual fund companies and intermediary firms.

“Invoicing and fee settlement through DTCC Payment aXis is the latest DTCC innovation to offer operational efficiencies for both funds and intermediaries,” says Nino Palermo, vice president at American Funds Distributors, Inc. “It transforms a cumbersome and varied process and provides streamlined efficiency through the use of standardization and net settlement capabilities.”

“DTCC Payment aXis eliminates costly, time-consuming and risk-prone manual methods for processing and settlement of mutual fund invoices,” says Josephine Torelli, vice president of DTCC’s Wealth Management Services (WMS) business, through which the solution is offered. “This typically involves the exchange of reports and spreadsheets via fax, email and regular mail while settlement occurs by physical checks or wires. The service has the functionality to be extended to accommodate any type of payments that occur between funds and their distributors in the future.”

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