The National Securities Clearing Corp. is in the initial stages of creating an offshoot that will service independent financial advisors. The new arm plans to computerize mutual fund processing for these independent planners who still do fund processing by mail. The venture is so new, however, a name has not yet been decided upon. The NSCC board of directors approved the creation of the new group in December.
"We're still in the early stages of this," said Stuart Goldstein, an NSCC spokesperson. The NSCC, a not-for-profit company owned by the New York and American stock exchanges and the NASD, currently clears and settles a majority of the mutual fund trades in the U.S. Its Fund/SERV system currently allows financial services companies to process mutual fund purchases and redemptions through automated connections with mutual fund companies.