The Depository Trust and Clearing Corp. has enhanced its mutual fund services to include 529 college savings plan information in a streamlined manner for broker/dealers and other financial distributors. New functionality has been added to the transactional hub Fund/SERVE and to network account reconciliation.

Since 529 plans are classified as municipal securities, each individual state has its own program requirements and different administrative methods, which heretofore resulted in high administrative and processing costs. DTCC’s changes now permit transactions to capture such additional information as the beneficiary’s social security number and address, cost-basis accounting and earnings-to-date in dollar amounts.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.