DTCC Applied Modifications To 529 Plans

The Depository Trust & Clearing Corporation (DTCC) has enhanced its Mutual Fund Services to decrease the complexity of processing 529 college savings plans for broker dealers and other financial distributors. 529 Plans, which can be used to pay tuition at

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The Depository Trust & Clearing Corporation (DTCC) has enhanced its Mutual Fund Services to decrease the complexity of processing 529 college savings plans for broker/dealers and other financial distributors.

529 Plans, which can be used to pay tuition at any qualified college nationwide, are popular investment vehicles that allow contributions to grow tax-deferred. To help financial firms overcome these challenges, DTCC’s National Securities Clearing Corporation (NSCC) subsidiary expanded the functionality of its Mutual Fund Services, including Fund/SERV (its transactional hub) and Networking (a core service that reconciles account-level information between funds and distributors) in order to provide firms the necessary details on 529 Plan transactions and activities.

The modifications allow parties to identify a transaction as specific to a 529 Plan; to capture information such as the beneficiary’s social security number and address, and to calculate cost-basis and earnings-to-date dollar amounts.

“NSCC has an extensive track record of offering valuable services to the mutual fund market for nearly 30 years, and the efficiencies built into our services have been instrumental in the growth of that market to over $12 trillion,” says Ann Bergin, managing director and general manager, DTCC Wealth Management Services.

“For broker/dealers and sponsors of 529 Plan programs, this new technology paves the way for a more efficient processing environment,” says Lisa M. Klassen, group leader, Edward Jones.

L.D.

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