A#

5683

P&S #:

5253
   

DATE:

September 24, 2003
   

TO:

ALL PARTICIPANTS
   

ATTENTION:

MANAGER MUTUAL FUNDS OPERATIONS; MANAGER DATA PROCESSING; MANAGER CASHIERS; MANAGER P&S DEPARTMENT
   

FROM:

 MUTUAL FUNDS - DISTRIBUTION SERVICES
   
SUBJECT: MUTUAL FUNDS - NOVEMBER 2003 - RELEASE IV

On November 21, 2003 National Securities Clearing Corporation (NSCC) will be implementing its fourth and final mutual fund release for 2003.  The following mutual fund systems and services are affected by this release:

(For a detailed explanation of the above modifications, please see Appendix A)

Note to mainframe users:

Participants are urged to program and test for the new record formats. The file layouts will be posted to the NSCC web site,formats.nscc.com for participants to review. 

Beginning October 25, 2003, testing of the new record layouts will be accommodated in the Participant Services Environment (PSE) region.  Participants wishing to test must contact the Enterprise Service Center Participant Test Group (PTG) at (212) 855-5630.   To ensure proper set up for the PSE region, it is requested that at least three days prior notice be provided to PTG.

Note to web users:

Web applications run on the PC Web Direct platform and require a current digital certificate for access.  Information on obtaining a digital certificate including step-by-step instructions can be found on our web site (www.nscc.com/apps).

Any questions or comments regarding this Important Notice can be directed to Mutual Funds Marketing (212-855-8877) or the undersigned at 212-855-5674.

Randy W. Solomon, Director-Mutual Funds Marketing


Appendix A

Mutual Fund Profile Service  (Year–End Tax Spreadsheet)

As a result of recent tax law changes, the Investment Company Institute has changed its Primary Layout for the 2003 Year-End Tax Reporting Information.  Mutual fund companies maintain this data on an Excel spreadsheet.

As a service to our participants, NSCC has developed a facility using PC Web Direct and the Mutual Fund Profile Service that allows tax data contained on Excel spreadsheets to be sent to firms and service bureaus. 

Funds use this method today when sending Year-End Tax data to firms; it will remain the same.  How it works:

Please reference the User Guides on our website: fundserv.nscc.com for details.

Both fixed and variable record layouts were modified to accommodate the changes on the output side.  Any firm that is set up to receive the MFP Phase II Global Distribution File # 02110826 will receive the Year-End Tax information (Record Type 045).  Please refer to the format.nscc.com website for the new layouts.

Funds sending data must have a digital certificate.  The spreadsheet upload function is accessed via the Profile Distribution section on PC Web Direct.   Funds wishing to test their spreadsheets with firms can use the test indicator to send their spreadsheets to the PSE Test Region.  For more information, please call our Mutual Fund Marketing department at 212-855-8877.

Mutual Fund Profile Service - CDSC

(PC Web Direct)

The Security Profile - CDSC screen has been revised to show the share age and its related back-end load charge in ascending order.

PIER Report – Security Types

The Mutual Fund Participant Information and Efficiency Report (PIER) has been enhanced and can be viewed by firms and funds starting October 7, 2003.

The PIER chart showing Load, No-Load, Money Market Fund, and UIT security type identifiers, has been expanded to include the additional security types processed by the participant through Fund/SERV.

The new security type identifiers include:

ACATS - Social Code

The new Social Code for an Institutional Trust Account (42) will be added to the ACATS and the ACATS-Fund/SERV System on October 27, 2003.  The new Social Code of 42 was added to both the Networking and Fund/SERV Systems in September 2003. 

Please see the related Important Notices:

·        Important Notice A5628, P&S 5198 dated June 11, 2003

·        Important Notice A5677, P&S 5247 dated September 16, 2003.

A value of 42 indicates to the mutual fund that this is a trust account.  The firm (typically a bank or trust company) will issue related tax reporting.