"This selection clearly signals our desire for National Securities to become the preeminent service utility of the mutual fund industry," Donald J. Boteler, the institute's vice president of operations, said in a prepared statement. Under the arrangement, New York-based National Securities will develop a 401(k) clearing house for mutual funds, plan trustees, and record keepers. They will be able to share information on daily fund prices, net asset values, daily accrual rates, dividends, order transmissions, confirmations, and net settlement. The plan also calls for National Securities to automate retirement asset transfers in two phases. In 1996, National Securities will modify its Fund/Serv system - which links mutual fund companies - to process fund-to-fund transfers, which currently account for 40% of all retirement plan transfers. Later, National Securities will modify its Automated Customer Account Transfer Service in the same way. This service is used by other market participants, such as broker-dealers and banks.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.