The Depository Trust & Clearing Corp. is offering its retirement plan services to broker-dealers that sell noninsurance benefits such as mutual funds.
Under a recent filing approved by the SEC, broker-dealers selling noninsurance benefits now can qualify as direct insurance carrier-retirement services members through its National Securities Clearing Corp. clearing subsidiary. Previously, only insurance carriers could qualify for this type of membership, says DTCC, New York.
DTCC offers automated commission payments and money settlements to distributors; gives distributors detailed information about clients’ investment performance; and tracks daily investment activity of each clients and broker-dealer.
The expansion of DTCC services means that registered broker-dealers selling noninsurance benefit programs through distributors can use DTCC’s services to speed up administration of their benefit offerings.