Alternative Investment Products
BEST PRACTICE USER GUIDE – FULL EDITIONJANUARY 26, 2024

Best Practice User Guide – Full Edition

TABLE OF CONTENTS
Introduction .......................................................................................................................................................... 4
Security General Profile ...................................................................................................................................... 5Best Practice for the Share Class Usage on the Security General Profile ..........................................................5Best Practice for the Set-up of the Dummy CUSIP Number...............................................................................5
Security Announcement ...................................................................................................................................... 6
Hedge Fund Purchases ......................................................................................................................................6
Trade Date/Dealing Date – (Business Date) .....................................................................................................6
Trade Date/Dealing Date – (Calendar Date) .....................................................................................................6
NTR/BDC Redemptions ......................................................................................................................................7
Security Contact ................................................................................................................................................... 8
Activity & Distribution ......................................................................................................................................... 9
Important Fields ..................................................................................................................................................9(Share & Money) Debit/Credit Indicator ............................................................................................................11
Capital Balance Funds – Debit/Credit Indicators ..............................................................................................12
Unitized Funds – Debit/Credit Indicators ..........................................................................................................14
Withholding Reporting.......................................................................................................................................17
Class-to-Class Conversions .............................................................................................................................21
Fund Assessed Fee ..........................................................................................................................................22
Position ............................................................................................................................................................... 24
Account Registration ......................................................................................................................................... 25
Account Responsibilities ...................................................................................................................................27
Responsibility Models ......................................................................................................................................28
Orders .................................................................................................................................................................. 31
Hedge Fund Purchases - Order with Registration ............................................................................................31
Fund Acknowledgement ..................................................................................................................................31
Load Types ......................................................................................................................................................31
Registration Fields ...........................................................................................................................................31
Contract Note ..................................................................................................................................................31
NTR/BDC Redemptions – Order ......................................................................................................................31
Introduction

2

Best Practice User Guide – Full Edition

Fund Exits .......................................................................................................................................................32
Miscellaneous ..................................................................................................................................................32
Private Equity – Order ......................................................................................................................................32
Commitment Order Process ............................................................................................................................32
Capital Call Order Process ..............................................................................................................................33
Delayed NAV Purchases ..................................................................................................................................33
Process Flow ...................................................................................................................................................34
Best Practices for Regular Processing ............................................................................................................34
Best Practices for Exception Processing ........................................................................................................35
Placement Fee Order Processing.....................................................................................................................35
Net/Gross Indicator Usage ...............................................................................................................................35
Account Transfer................................................................................................................................................ 37
Transaction Type Descriptions .........................................................................................................................37
Miscellaneous ..................................................................................................................................................37
Transfer Types ................................................................................................................................................38
Process Flow Types ..........................................................................................................................................38
Daily Funds – Process Flow Indicator (0 – REITS/BDC Processing) .............................................................38
Periodic Funds – Process Flow Indicator (1 – Hedge Fund Processing) ........................................................38
Document Transfer ............................................................................................................................................ 40
Process Flow ...................................................................................................................................................40
Best Practices .................................................................................................................................................40

Introduction

3

Best Practice User Guide – Full Edition

INTRODUCTION
This guide is intended to document best practices that have been agreed upon by subcommittees and/or the
AIP Roundtable committee. It is not intended to provide mandatory system requirements or explain howtransactions work – the AIP Data Dictionary and Transactions Flows, respectively, provide detailed information
on each.
This guide documents common, agreed upon and/or expected client usage of AIP transactions that are notsystem requirements. The information contained here should be considered when transactions and records arebeing implemented.
AIP documentation, including this guide, the Data Dictionary and the Transactions Flows can be found on
http://www.dtcc.com/aip.

Introduction

4

Best Practice User Guide – Full Edition

SECURITY GENERAL PROFILEBest Practice for the Share Class Usage on the Security General
ProfileThe Fund ‘Share Class’ will be populated in the Share Class field on the Security General Profile:•

For Example, the Share Class Field will only display the value ‘A’.

•

The word ‘Class’ will not be included in the Share Class field.

•

The Share Class should be included in both the Security Issue Name and the Share Class field.

Best Practice for the Set-up of the Dummy CUSIP Number
Unregistered - When the fund is ‘unregistered’, it does not have a valid CUSIP, therefore the Security Identifiershould be established with the value (4 = Custom):•This is to identify the fund has an unregistered dummy number.

•

A new NSCC Security Issue Number will be assigned for the unregistered fund.

Registered CUSIP - When the fund is ‘registered’ and has a valid CUSIP number, the Security Identifier should
be changed to (3 = CUSIP) and the Security Issue ID should be updated with the valid CUSIP number:•This is to identify that the fund has a valid registered CUSIP.

•

An updated Security General Profile record will be sent with the new Security Identifier and Security Issue
ID.

•

Funds will also communicate the updated CUSIP to the firms outside of AIP to ensure they are aware of
the change.

Security General Profile

5

Best Practice User Guide – Full Edition

SECURITY ANNOUNCEMENT
Hedge Fund Purchases
1.

Individual vs. Recurring Announcements – Rather than try to build complex and varying logic for recurring
Security Announcements dates into the record, functionality is included in the AIP Web Platform to set-up
future-dated announcements and should be used by Funds and Fund Administrators.

2.

Trade Date/Dealing Dates – There are two types of Trade Dates/Dealing Dates to accommodate existing
convention and support system limitations. The two types are Trade Date/Dealing Date (Business Date)and Trade Date/Dealing Date (Calendar Date).

Trade Date/Dealing Date – (Business Date)
The Trade Date/Dealing Date – (Business Date) must be a valid settlement date and is generally used by the
Firm to process trades.
Examples:o

If the 1st of the month falls on a (Saturday, Sunday, or Holiday), the user will populate theTradeDate/Dealing Date – (Business Date) with the next available business date.

o

If the 1st of the month falls on a normal business date (Monday thru Friday), the user will populate
theTrade Date/Dealing Date – (Business Date) with the 1st of the month.

Trade Date/Dealing Date – (Calendar Date)
The Trade Date/Dealing Date – (Calendar Date) is always the date specified in the fund documentation andcan fall on a Saturday, Sunday, or Holiday. It is generally used by the Fund or Fund Administrators to processtrades.
Examples:o

If the 1st of the month falls on a (Saturday, Sunday, or Holiday), the user will populate theTrade Date/Dealing Date (Business Date) with the next available business date. The Trade
Date/DealingDate (Calendar Date) should be populated with the 1st of the month.

o

If the 1st of the month falls on a normal business date (Monday thru Friday), the user will populate
the Trade Date/Dealing Date (Business Date) with the same date as the Trade Date/Dealing
Date(Calendar Date).

To avoid reporting and tax issues, the Trade Date/Dealing Date (Business Date) and Trade Date/Dealing Date
(Calendar Date) should occur in the same month.

Security Announcement

6Best Practice User Guide – Full Edition

NTR/BDC Redemptions
1.

There are two Security Announcement types that should be used as indicated below:a.

Quarterly or monthly redemptions should use Announcement Type = 01 Tender Offer/Redemption,
which is a non-recurring event.

b.

Daily redemptions should use Announcement Type = 17 Recurring Redemption with a Recurring
Transaction Frequency = 00 Daily.
i.

For these Orders, the Firm should specify the Trade Date and Settlement Date withrecommended timing being T+3 to allow for processing (acknowledgement, confirmation, money
settlement, etc.).

2.

In cases where the redemption period is ‘active’, but the fund is restricting new redemption requests, theSecurity Announcement should remain active, and the fund should reject orders as needed; the Security
Announcement should not be deleted.

3.

In AIP, the last point for Firm (and Fund) Exits is C98 at 7pm ET, the processing day before theSettlement Date. However, this cut-off can be superseded if the Fund populates an earlier date for theRescission Date, which should be treated as the last day for Firm Corrections or Firm Exits.

Security Announcement

7Best Practice User Guide – Full Edition

SECURITY CONTACT
The following fields must be provided on the Contact record, even though the fields are ‘optional’:

Field

Value

Contact Name/Address Line 1 of Record 1 thru 5

Should only reflect the Contact Name

Address Line 1,2,3 of Record 1 thru 5

Should only reflect the Street Address

Contact City of Record 1 thru 5

Should reflect the City

Contact Zip/Postal Code of Record 1 thru 5

Should reflect the Zip CodeContact Telephone Number of Record 1 thru 5

Should reflect the Telephone Number (no dashes i.e., 8134445555)

Contact Email address of Record 1 thru 5

Should reflect the Email address, if applicable

Security Contact8

Best Practice User Guide – Full Edition

ACTIVITY & DISTRIBUTION
Important Fields
Field
Fund/Firm Account Number Field

Description• Firm Account number should always be populated.
• Firms will accept and store Fund Account numbers if included in the record;

both should be populated if available.

Effective Date (Business Date)

Preferred Methods:

Field (short term solution)• Populate with the Trade Date.
• Populate with the processing date, in which Trade Date will be listed in the“Original Trade Date/Payable Date for Adjustments” field.

Example 1: A dividend adjustment should contain:• Payable Date Field: 01/30/2017 (Date the adjustment is eligible to be paid)• Effective Date Field: 01/30/2017 (New Trade Date)• Original Trade Date/Payable Date for Adjustment Field: 12/30/2016 (Dateof the original trade/distribution)

Example 2: A dividend adjustment should contain:• Payable Date Field: 12/30/2017 (Date the adjustment is eligible to be paid)• Effective Date Field: 12/30/2017 (Process Date)• Original Trade Date/Payable Date for Adjustment Field: 12/30/2017(TradeDate)

Payable Date Field

Activity & Distribution

This field is determined by the Fund.

9Best Practice User Guide – Full Edition

Field
Share Quantity Field

Description
Share Quantity should always be populated to include Capital Balance as $1 pershare with the exception for Cash Distributions or Cash Adjustments transactions(see table below for list of transactions).
Example: Capital Bank Fund submitting Transaction Type = 01 Direct Purchase of
10000.00:• Share Quantity field: 10000.00• Money Amount field: 10000.00• Price per Share field: 1.0

Money Amount Field• Money Amount field should always be populated for Cash Distribution

transactions.

• MRO Users must be aware of adding the additional 00 after the implied decimal.

Price per Share• Should be populated for Direct Purchases.
• Capital Balance Funds should be populated as $1 per share.

Example: Capital Bank Fund submitting Transaction Type = 01 Direct Purchase of
10000.00:• Share Quantity field: 10000.00• Money Amount field: 10000.00• Price per Share field: 1.00

Estimated or Actual Value Indicator• Funds should send actual values vs. estimated values for transactions.
• If an estimated value is sent, should be populated with “1 = Estimated”.
• Records sent with this value blank will be assumed as “Actual”.

Account Registration Name –Extended Field

If this field is used, the account registration must start from the beginning (fullaccount registration name) and entered in its entirety.
• *Account Registration Name formatting is usually driven by what is sent by thefirm*

Related Control Number Field

When available this field should be populated for a Cancellations, anddistribution adjustments/reversals, if available.

SSN/EIN/TIN Number Field

Although not required, the investor SSN, TIN, or EIN should be populated as
best practice.

Record Date Field

Should be populated for distributions of funds with record dates.

Activity & Distribution

10

Best Practice User Guide – Full Edition

Field
Adjustment Indicator Field

Description• Related control number should be provided if available.
• Adjustment Indicator field option “1 = Adjustment” should be populated for AIP

distribution adjustments.

• Adjustment Indicator field option “2 = Reversal” should be populated for

distribution cancellations.

Dividend Reporting

Use Transaction Type “59 = Dividend Cash” for cash dividend distributions and 60.
• = Stock Dividend for dividends paid in shares(Share & Money) Debit/Credit Indicator
The Activity & Distribution is used by Funds and Fund Administrators to report periodic reconciliation of theinvestors share and account balance to the Firms. This will ensure that both the Fund and Firms books arereflecting the most recent information for the investor’s statements.
Step 1: The Fund is responsible to send an Activity & Distribution record to report any financial or non-financialtransactions at the investor level.
Step 2: The Fund will send the appropriate Activity Transaction Type to report a Distribution, Adjustment,
Activity or Withholdings for the investor.
Step 3: The Fund will provide the appropriate Share Debit/Credit and/or Money Debit/Credit Indicator to reflect
which party will be debited or credited for the transaction.
Note:
The Activity & Distribution transaction can be settling, which means monies will be debited and credited via AIP. If thetransaction is ‘non-settling’, the monies will be settled outside of the AIP application.

Step 4: If the Fund is ‘Unitized’ the Share Debit/Credit Indicator will be populated.
Share Debit/Credit Indicator•

1 = Debit Firm/Credit Fund – Decrease SHARE to FIRM (Redemption, Reversals, Adjustments,Purchase
Cancellation).

•

2 = Debit Fund/Credit Firm – Increase SHARE to FIRM (Purchase, Adjustments, Redemption
Cancellation, Dividend Reinvestments).

Step 5: If the Fund is ‘Capital Balance’’ the Money Debit/Credit Indicator will be populated.
Money Debit/Credit Indicator•

1 = Debit Firm/Credit Fund – Decrease MONEY to FIRM (Purchase, Reversals, Adjustments,Redemption
Cancellation, Call Event – Client Debit).

•

2 = Debit Fund/Credit Firm – Increase MONEY to FIRM (Redemption, Adjustments, Purchase
Cancellation, Cash Dividends).

Activity & Distribution

11

Best Practice User Guide – Full Edition

Note:
For Reinvested Distributions, both the Share Debit/Credit and Money Debit/Credit Indicator will be populated.

Step 6: Below is a list of various AIP Transaction Types and their descriptions which outlines what the Funds
will populate in the Share Quantity, Money Amount, Share Debit/Credit and/or Money Debit/Credit Indicatorfields, when transmitting the Activity & Distribution record to the Firms. The chart is separated based on if thefund is Capital Balance (Non-Unitized) or Unitized.

Capital Balance Funds – Debit/Credit Indicators
Adjustments
Transaction
Description

AIP Transaction
Types

Share
Quantity

Money
AmountShare Debit/Credit
Indicator

Money Debit/Credit
Indicator

Increase Div
Reinvest

29

Yes

Yes

2

2

Decrease Div
Reinvest

29

Yes

Yes

1

1

Increase Div
Cash

59

No

Yes

spaces2

Decrease Div
Cash

59

No

Yes

spaces1

Increase LTG
Reinvest

55

Yes

Yes

2

2

Decrease LTG
Reinvest

55

Yes

Yes

1

1

Increase LTG
Cash

56

No

Yes

spaces2

Decrease LTG
Cash

56

No

Yes

spaces1

Increase STG
Reinvest

57

Yes

Yes

2

2

Decrease STG
Reinvest

57

Yes

Yes

1

1

Increase STG
Cash

58

No

Yes

spaces2

Activity & Distribution

12

Best Practice User Guide – Full Edition

Adjustments
Decrease STG
Cash

58

No

Yes

spaces1

Activity (Non-Distribution)
Transaction Description

AIP Transaction Share
Types
Quantity

Money
AmountShare Debit/Credit Money Debit/Credit
Indicator
Indicator

Reinvested Div

29

Yes

Yes

2

2

Cash Dividend

59

No

Yes

Blank

2

Redemption

02

Yes

Yes

1

2

Cancel Redemption

25

Yes

Yes

2

1

Purchase

01

Yes

Yes

2

1

Cancel Purchase

24

Yes

Yes

1

2

Exchange In

01

Yes

Yes

2

1

Exchange Out

02

Yes

Yes

1

2

Cancel Exchange In

24

Yes

Yes

1

2

Cancel Exchange Out

25

Yes

Yes

2

1

Non-Taxable
Exchange Purchase

23

Yes

Yes

2

1

Non-Taxable
Exchange Redeem

02

Yes

Yes

1

2

Cancel Non-Taxable
Exchange Purch

24

Yes

Yes

1

2

Cancel Non-Taxable
Exch Redeem

25

Yes

Yes

2

1

Call Event – Client
Debit

72

Yes

Yes

2

1

Activity & Distribution

13

Best Practice User Guide – Full Edition

Withholding
Transaction
Description

AIP Transaction
Types

Share
Quantity

Money
AmountShare Debit/Credit
Indicator

Money Debit/Credit
Indicator

Increase
Dividend w/h

59, 60

Yes

Yes

2

2

Decrease
Dividend w/h

29, 55, 57

Yes

Yes

1

1

Withholding
for Reinvested
Accounts

63

No

Yes

Blank

2

Withholding Adjustments
Transaction
Description

AIP Transaction
Types

Share
Quantity

Money
AmountShare Debit/Credit
Indicator

Money Debit/Credit
Indicator

Increase
Withholding for
Reinvested
Accounts

63

No

Yes

Blank

2

Decrease
Withholding for
Reinvested
Accounts

63

No

Yes

Blank

1

Share Debit/Credit
Indicator

Money Debit/Credit
Indicator

Unitized Funds – Debit/Credit Indicators
Adjustments
Transaction
Description
Increase Div
Reinvest

Activity & Distribution

AIP Transaction
Types
29

Share
Quantity

Money
Amount

Yes

Yes

2

2

14

Best Practice User Guide – Full Edition

Adjustments
Decrease Div
Reinvest

29

Yes

Yes

1

1

Increase Div
Cash

59

No

Yes

spaces2

Decrease Div
Cash

59

No

Yes

spaces1

Increase LTG
Reinvest

55

Yes

Yes

2

2

Decrease LTG
Reinvest

55

Yes

Yes

1

1

Increase LTG
Cash

56

No

Yes

spaces2

Decrease LTG
Cash

56

No

Yes

spaces1

Increase STG
Reinvest

57

Yes

Yes

2

2

Decrease STG
Reinvest

57

Yes

Yes

1

1

Increase STG
Cash

58

No

Yes

spaces2

Decrease STG
Cash

58

No

Yes

spaces1

Increase Stock
Div

60

Yes

No

2

spacesDecrease Stock
Div

60

Yes

No

1

spacesActivity (Non-Distribution)
Transaction Description
Reinvested Div

Activity & Distribution

AIP Transaction
Types
29

Share
Quantity

Money
AmountYes

Yes

Share Debit/Credit
Indicator
2

Money Debit/Credit
Indicator
2

15

Best Practice User Guide – Full Edition

Activity (Non-Distribution)
Cash Dividend

59

No

Yes

Blank

2

Redemption

02

Yes

Yes

1

2

Cancel Redemption

25

Yes

Yes

2

1

Purchase

01

Yes

Yes

2

1

Cancel Purchase

24

Yes

Yes

1

2

Exchange In

01

Yes

Yes

2

1

Exchange Out

02

Yes

Yes

1

2

Cancel Exchange In

24

Yes

Yes

1

2

Cancel Exchange Out

25

Yes

Yes

2

1

Non-Taxable
Exchange Purchase

23

Yes

Yes

2

1

Non-Taxable
Exchange Redeem

02

Yes

Yes

1

2

Cancel Non- Taxable
Exchange Purch

24

Yes

Yes

1

2

Cancel Non- Taxable
Exch Redeem

25

Yes

Yes

2

1

Call Event – Client Debit

72

Yes

Yes

2

1

Withholding
Transaction
Description

AIP Transaction
Types

Share
Quantity

Money
AmountShare Debit/Credit
Indicator

Money Debit/Credit
Indicator

Increase
Dividend w/h

59, 60

Yes

Yes

2

2

Decrease
Dividend w/h

29, 55, 57

Yes

Yes

1

1

Activity & Distribution

16

Best Practice User Guide – Full Edition

Withholding
Withholding for
Reinvested
Accounts

63

No

Yes

Blank

2

Withholding Adjustments
Transaction
Description

AIP Transaction
Types

Share
Quantity

Money
AmountShare Debit/Credit
Indicator

Money Debit/Credit
Indicator

Increase
Withholding for
Reinvested
Accounts

63

No

Yes

Blank

2

Decrease
Withholding for
Reinvested
Accounts

63

No

Yes

Blank

1

Withholding Reporting
Note:
The effective date for industry implementation will be 3rd Quarter 2024.

Reinvested Distributions with Withholding when the Firm is the Withholding Agent would be processed as two
separate transactions in the same cycle:••

Transaction #1
oTransaction Type 29 = Dividend Reinvestment would be used to report a reinvested dividend
transaction with withholding (non-settling).

o

The following fields should be populated:»

Backup Withholding Indicator»

Backup Withholding Amount»

Total Distribution Amount (will reflect the total taxable amount of the transaction)

Transaction #2
oTransaction Type 63 = Withholding for Reinvested Accounts would be used to report thewithholding component and would be linked to Transaction Type 29 = Dividend Reinvestment by theRelated Control Number (can be settling or non-settling).

o

The following field should be populated:»oTotal Distribution Amount (will reflect the withholding amount)

The following fields will be required:»

Activity & Distribution

Backup Withholding Indicator
17Best Practice User Guide – Full Edition»

Backup Withholding Amount»

Related Control Number

Withholding Adjustments when the Firm is the Withholding Agent would be processed as one transaction (canbe settling or non-settling):oTransaction Type 63 = Withholding for Reinvested Accounts would be used to report the adjusted
withholding component and would be linked to the original Transaction Type 29 = Dividend
Reinvestment by the Related Control NumberoThe following fields should be populated:o»Adjustment Indicator should be 1 = Adjustment»

Total Distribution Amount (will reflect the withholding adjustment amount)

The following fields will be required:»

Original Trade Date/Payable Date for Adjustment (Required if Adjustment Indicator is 1 =Adjustment)»

Backup Withholding Indicator»

Backup Withholding Amount»

Related Control Number

Reinvested Distributions with Withholding when the Fund is the Withholding Agent would be processed as one
non-settling transaction:oTransaction Type 29 = Dividend Reinvestment would be used to report a reinvested dividend
transaction with withholding.

o

The following fields should be populated:»

Backup Withholding Indicator»

Backup Withholding Amount»

Total Distribution Amount (will reflect the total taxable amount of the transaction)

Cash Distributions with Withholding when the Firm or Fund is the Withholding Agent would be processed as
one settling or non-settling transaction:oTransaction Type 59 = Dividend Cash would be used to report a cash dividend transaction withwithholding.

o

The following fields should be populated:»

Backup Withholding Indicator»

Backup Withholding Amount»

Total Distribution Amount (will reflect the total taxable amount of the transaction)

Backup Withholding Scenarios:•

Firm W/H Agent – Two Activity records are required to execute a Reinvested Distribution with
Withholding. One Activity record is required to execute a Cash Distribution with Withholding.

Activity & Distribution

18

Best Practice User Guide – Full Edition

FieldsDividend Reinvestment
Transaction Values

Withholding Only
Transaction with Related
Control Number Values

Cash Dividend Transaction
ValuesRecord Type

50 = Activity & Distribution

50 = Activity & Distribution

50 = Activity & Distribution

Transaction Type

29 = Dividend
Reinvestment

63 = Withholding for
Reinvested Accounts

59 = Dividend Cash

Control Number

00009429100200000001

00009429100200000002

00009429100200000005

Account Number

FH736B2

FH736B2

FH736B2

Settlement Indicator

2 = Non-Settling (ONLY)

1 = Settling or 2 = NonSettling

1 = Settling or 2 = NonSettling

BackupWithholding
Indicator

1 = NRA, 2 = Tefra Backup,
3 = Tefra Pension

1 = NRA, 2 = Tefra Backup,
3 = Tefra Pension

1 = NRA, 2 = Tefra Backup,
3 = Tefra Pension

10.00

10.00

10.00

Money Amount

100.0010.00

110.00Share Quantity

9.0000

Blank

Blank

Total Distribution
Amount110.0010.00

110.00Share
Debit/Credit
Indicator

2 = Debit Fund / Credit Firm

Blank

Blank

Money
Debit/Credit
Indicator

2 = Debit Fund / Credit Firm

2 = Debit Fund / Credit Firm

2 = Debit Fund / Credit Firm

(Required forWithholding
Only
Transaction)
BackupWithholding
Amount(Required forWithholding
Only
Transaction)

Activity & Distribution

19

Best Practice User Guide – Full Edition

FieldsRelated Control
NumberDividend Reinvestment
Transaction Values

Withholding Only
Transaction with Related
Control Number Values

Cash Dividend Transaction
ValuesBlank

00009429100200000001 *Blank*Ties back to the original
reinvest transaction(Required forWithholding
Only
Transaction)•

Firm W/H Agent – One Activity record is required to execute a Withholding Adjustment.
FieldsWithholding Adjustment Only
Transaction with Related
Control Number Values

Record Type

50 = Activity & Distribution

Transaction Type

63 = Withholding for Reinvested Accounts

Control Number

00009429100200000008

Account Number

FH736B2

Settlement Indicator

1 = Settling or 2 = Non-Settling

Backup Withholding Indicator

1 = NRA, 2 = Tefra Backup, 3 = Tefra Pension(Required for Withholding Only Transaction)
Backup Withholding Amount

15.00(Required for Withholding Only Transaction)
Money Amount

15.00

Share Quantity

Blank

Total Distribution Amount

15.00

Share Debit/Credit Indicator

Blank

Money Debit/Credit Indicator

1 = Debit Firm / Credit Fund (Decrease withholding)
2 = Debit Fund / Credit Firm (Increase withholding)

Related Control Number(Required for Withholding Only Transaction)•

00009429100200000001**Ties back to the original reinvest transaction

Fund W/H Agent – One Activity record is required to execute a Reinvested Distribution with Withholding.
One Activity record is required to execute a Cash Distribution with Withholding.

Activity & Distribution

20

Best Practice User Guide – Full Edition

FieldsDividend Reinvestment Transaction
ValuesCash Dividend Transaction Values

Record Type

50 = Activity & Distribution

50 = Activity & Distribution

Transaction Type

29 = Dividend Reinvestment

59 = Dividend Cash

Control Number

00009429100200000003

00009429100200000007

Account Number

FH736B2

FH736B2

Settlement
Indicator

2 = Non-Settling (ONLY)

1 = Settling or 2 = Non-Settling

BackupWithholding
Indicator

1 = NRA, 2 = Tefra Backup, 3 = Tefra
Pension

1 = NRA, 2 = Tefra Backup, 3 = Tefra
PensionBackupWithholding
Amount

10.00

10.00

Money Amount

100.00100.00Share Quantity

9.0000Blank

Total Distribution
Amount110.00110.00Share
Debit/Credit
Indicator

2 = Debit Fund / Credit Firm

Blank

Money
Debit/Credit
Indicator

2 = Debit Fund / Credit Firm

2 = Debit Fund / Credit Firm

Class-to-Class Conversions•

Share Class Exchanges within the same fund family:oFunds send two Activity Records via AIP in the same file:»

1st record: 51 = Share Class Exchange Out»

2nd record: 22 = Share Class Exchange In•

Both transactions should be sent in the same AIP cycle»

Non-settling»

Taxable Indicator should be 0 = No

Activity & Distribution

21

Best Practice User Guide – Full Edition»•

Feeder Exchanges within the same fund family:o•Related Control Number field should be provided for each corresponding “Share Class
Exchange” transaction.

Funds send two Activity records via AIP in the same file:»

Activity Type 46 = Swap Out»

Activity Type 45 = Swap In»

Non-settling»

Taxable Indicator should be 1 = Yes

Fund MergersoIf the new fund will be on AIP, utilize Activity Type 23 = Fund Merger Activity with New NSCC ID andpopulate the new NSCC ID in the Cross Security NSCC ID field.

o

If the new fund will not be on AIP, utilize Activity Type 71 = Fund Merger Activity without New NSCC
ID and do not populate the Cross Security NSCC ID field since it’s not on AIP.

o

Activity Type 68 = Cash-in-Lieu should be settling and used to return any partial shares as cash.

Fund Assessed Fee
The Fund Assessed Fee Amount should be processed as one transaction.
Fund Assessed Fee Scenarios:•

Fund Assessed Fee – One Activity record is required to execute this process.
FieldsDividend Reinvestment Transaction
ValuesCash Dividend Transaction Values

Record Type

50 = Activity & Distribution

50 = Activity & Distribution

Transaction Type

29 = Dividend Reinvestment

59 = Dividend Cash

Control Number

00009219100200000005

00009219100200000006

Account Number

FH736B2

FH736B2

Settlement Indicator

2 = Non-Settling (ONLY)

1 = Settling or 2 = Non-Settling

Fund Assessed Fee Amount

10.00

10.00

Money Amount

100.00100.00Share Quantity

9.0000Blank

Total Distribution Amount

110.00110.00Share Debit/Credit Indicator

2 = Debit Fund / Credit Firm

Blank

Activity & Distribution

22

Best Practice User Guide – Full Edition

FieldsMoney Debit/Credit Indicator

Activity & Distribution

Dividend Reinvestment Transaction
Values2 = Debit Fund / Credit Firm

Cash Dividend Transaction Values
2 = Debit Fund / Credit Firm

23

Best Practice User Guide – Full Edition

POSITION
Field
DOL Enhancement Fields

Description
The following fields are optional but should be provided information if available:• Account Open Date
• Account Type• Account Representative/Advisor Number• Account Representative/Advisor Name
• Branch ID Number

Negative Balance Reporting

Negative Position Balances are not allowed in AIP.

NAV Effective

Should be populated if not utilizing the valuation record with last reported NAV
Date.

NAV Field

Should be populated if not utilizing the valuation record with last reported
NAV.

Fund/Firm Account Number Field

Firm Account number should always be populated.
Firms will accept and store Fund Account numbers if included in the record;
both should be populated if available.

Closing Share Balance Field

Should always be populated for both Capital Balance and Unitized funds.

Closing Money Amount Field

Should be populated for Capital Balance funds.

Invested Value Field

If populated, should be populated with the total contribution amount.

Account Registration Name –Extended Field

When populated should start the name from the beginning.

SSN/TIN/EIN Number Field

Although not required, the investor SSN, TIN, or EIN should be populated as
best practice.

Position24

Best Practice User Guide – Full Edition

ACCOUNT REGISTRATIONField
New Firm AccountNumber Field

Description• The “New Firm Account Number” field should only be populated on

053 = AccountMaintenance record.

• Plan type or Owner type change should be processed as Account Transfers.
• Correction to an account number should be sent as a 053 = Account

Maintenance record. The old/incorrect account number will be populatedon the “Firm Account Number” field and the new/correct account numberin the “New Firm Account Number”field.

Examples for field usage:• Account number changes which involve a new and previous account havesame broker/advisor and same registration type (i.e., change from a selfmanaged account to amanaged account or vice versa).

• Account number change – new and previous account have different

broker/advisor andsame registration type.

Fund Account Number
Field

Fund will provide on the 026 = Registration Acknowledgement record if
available.

Firm Account Number
Field

Fund will populate on the 026 = Registration Acknowledgement record.

Account
Representative/Advisor
Name Field

Firm should include Account Representative/Advisor Name.

Account
Representative/Advisor
Number Field

Firm should include the Account Representative/Advisor Number.

Branch ID Number
Field

Branch ID Number field should be included if available.

Firm CRD Number
Field

Firm should avoid populating with all zeros when no CRD Number is available.

Dividend Option Field

Firm should populate when known and applicable. If left blank fund will
elect the funddefault option.

Owner DOB Field

Owner date of birth should be provided if available.

Account Registration

25

Best Practice User Guide – Full Edition

Field

Description

Custodian Name Field

Custodian Name field should be populated.

Custodian Tax
Identification Number
Field

Custodian Tax ID should be populated.

Individual CRD/IARD
Number Field

If a shared representative, the lead/primary presentative ID should be used.

Account Registration
Name Field

Address of Records
fields (Until
Enhancements are
implemented)•

Begin with the Custodian Name.

•

Address information should not be included in the accountregistration field Include Account Type.

•

Formatting for domestic and foreign accounts should be the same.

The City/State should go in the line(s) directly after the street address:

Field Name

Data Populated

Address of Record 1 Line 1

2 Destiny Way

Address of Record 1 Line 2

Westlake TX

Address of Record 1 Line 3
Address of Record 1 Line 4
Address of Record 1 Line 5

Phone Number ofRecord Field

Email Address ofRecord Field

Address Type of Record
2- 5 Fields

Account Registration•

Phone Number should be provided.

•

If populated, should be left justified and include area code & countrycode for non-US Do not include dashes; pad with spaces not zeros.

Email address should be provided.

•

Funds should be notified via the Account Maintenance record of any
temporary changes tomailing address.

•

If 02 = Secondary (Mailing) is selected, all account correspondence
will go to that mailing address.

•

If the mailing address is not different from Primary address listed, itshould not beduplicated on the same record.

•

Foreign addresses with Provinces should be included in the “City ofRecord” field.

26

Best Practice User Guide – Full Edition

Account Responsibilities
Category

Definition and Examples

New Account Opening

Account creation, TOD, Beneficiary Designation, Trust Documents,
etc.

Compliance/Regulatory

USA PATRIOT ACT: CIP, AML/KYC, OFAC, FINCEN (or applicablecountry’s compliance and regulation)

Mailings

Includes mailings for tender offers, capital calls, proxies, andregulatory mailings; lost shareholder tracking.

Tax Withholding

Includes B and C notices, tax levy/lien, all tax withholding (Federal
and State mandated, NRA and FATCA/backup) and tax payments.

Tax Reporting

Includes sending 1099’s, cost basis reporting, etc. to the investor; forK-1 funds all tax reporting is done by the Fund to the investor
regardless of the responsibility level.

Financial Transaction
Authorization

Includes processing requests or receiving instructions from theinvestor for purchases, redemptions, transfers, etc. and includes
money settlement.

Account Maintenance
Authorization

Includes processing requests from the investor for address changes,
distribution option changes, BIN changes, withholding changes,
registration changes, introducing broker dealer changes, etc.

Front-End Commissions

Commissions paid to the broker/advisor.

Back-End Payments

Payments made ‘after the sale’ to the broker/advisor, e.g., trailing
type fees, service fees, etc.

Investor Reporting

Includes sending trade confirmations, statements, etc. to the investor.

Distribution Payment
Instructions

Who receives distribution payments and where they go.

Escheatment

Responsible for regulatory filings, reporting, due diligence mailings,
tracking of investor contact information and transfer of assets to thestate on behalf of the investor.

Document Retention

Specifies the party responsible for storing documents.

Account Registration

27

Best Practice User Guide – Full Edition

Responsibility Models
Note:
Exceptions and additional details or clarifications should be defined in agreements outside of AIP.

Fund Responsibility Model
Network Control
Indicator
C = Customer Controlled

Account Registration

HybridResponsibility

Responsibility Category

Responsible Party

Indicator
Space = No

New Account Opening

Fund

Compliance/Regulatory

Fund

Mailings

Fund

Tax Withholding

Fund

Tax Reporting

Fund

Financial Transaction Authorization

Fund

Account Maintenance Authorization

Fund

Front-End Commissions

Fund

Back-End Payments

Fund

Investor Reporting

Fund

Distribution Payment Instructions

Fund

Escheatment

Fund

Document Retention

Fund

28

Best Practice User Guide – Full Edition

Firm Responsibility Model
Network Control
Indicator
B = Broker Controlled

Account Registration

HybridResponsibility

Responsibility Category

Responsible Party

Indicator
Space = No

New Account Opening

Firm

Compliance/Regulatory

Firm

Mailings

Firm

Tax Withholding

Firm

Tax Reporting

Firm

Financial Transaction Authorization

Firm

Account Maintenance Authorization

Firm

Front-End Commissions

Firm

Back-End Payments

Firm

Investor Reporting

Firm

Distribution Payment Instructions

Firm

Escheatment

Firm

Document Retention

Firm

29

Best Practice User Guide – Full Edition

Hybrid Responsibility Model
Network Control
Indicator

HybridResponsibility

Responsibility Category

Responsible Party

Indicator
1 = Yes

New Account Opening

Determined by
Fund & Firm

Compliance/Regulatory
Mailings
Tax Withholding
B = Broker Controlled

Tax Reporting
Financial Transaction Authorization
Account Maintenance Authorization

Note:‘Hybrid’ can only be selected if
the Network Control Indicator
is B = Broker Controlled

Front-End Commissions
Back-End Payments
Investor Reporting
Distribution Payment Instructions
Escheatment
Document Retention‘Hybrid Responsibility Indicator’ Usage•

Because responsibilities are usually defined in agreements and have important impact, Firms can’tchange the Hybrid Responsibility Indicator by sending an Account Maintenance record with a new value
for the Hybrid Responsibility Indicator; this should be done outside of AIP.

Account Registration

30

Best Practice User Guide – Full Edition

ORDERS
Hedge Fund Purchases - Order with Registration
Fund Acknowledgement•

The Order and Account Registration should be Fund Acknowledged within 24 hours to either ‘accept’ or‘reject’ the trade.

Load Types•

If the Load Type Indicator is populated to 9 = Placement Fee, either the Commission Amount orCommission Percentage should be populated but the Commission Amount is preferred.

•

If the Load Type Indicator is populated to 3 = Front End Load, the following fields are used to populate theamount in conjunction with specifying the breakpoints on the Security General Profile.

•

Breakpoint Limit Number•

Dealer Concession Percentage & Dealer Concession Amount

Registration Fields•

The ‘Address Type of Record 1’ should be populated to (01 = Primary). The ‘Address of Record 1 Line’should reflect the shareholder’s physical address used for state reporting.

•

The following fields should be populated to assist in establishing the shareholder’s registration.
o

SSN/TIN/EIN Indicatoro

SSN/TIN/EIN NumberoOwner Date of Birth

Contract Note•

For hedge fund purchases, the Contract Note record will not be used.

NTR/BDC Redemptions – Order•

For Orders sent on Security Announcement Type = 17 Recurring Redemption, Firms should specify theTrade Date and Settlement Date with recommended timing being T+3 to allow for processing,acknowledgement, confirmation, money settlement, etc.

•

Orders should be sent as a Full Redemption or a Partial Redemption Request.

•

The Share Lot Identifier fields on the Order record should not be used.

•

The Dealer Concession, CDSC Amount, and Redemption Fee should not be populated on the Firm Order;
only the Fund will populate them on the Confirmation if needed.

•For ‘exception’ cases where the Redemption Reason won’t be 01 = Regular, Firms should use one of thefollowing Redemption Reason codes:

Orderso02 = Deatho03 = Disability

31

Best Practice User Guide – Full Editiono04 = Hardshipo

05 = Odd lotso

06 = RMD - Required Minimum Distribution•

Firms should not use Redemption Reason 07 = Other/Unknown Exception unless absolutely necessary.

•‘Exceptions’ are expected to require paperwork such as death certificate, etc.; however, some firms will
send documentation on all redemptions.
oDocumentation will be sent outside AIP until the AIP E-Doc functionality is implemented; at whichtime it should be used with redemption orders.

Fund Exits•

If a Fund will be exiting a redemption, they should contact the Firm directly to explain why they are
sending an exit, which will cancel the transaction.

Miscellaneous•

Sponsors should have primary exception reasons specified on their paper redemption forms.

•

Paying a dividend (or similar event) within a redemption period should be discouraged; however, if it
happens or extra shares are accrued, they should be included in the request, so that there isn’t money left
in the account after a full redemption request was processed.
o

If a distribution is made after a full redemption is processed, a separate settling Activity record should
be sent by the Fund.

Private Equity – Order
Commitment Order Process•

Fund should leverage the “Call/Commitment Fund Indicator” on the Security General Profile to identify
whether the fund is a call/commitment fund prior to the opening of a Security Announcement for a
Commitment Order.

•

The Security Announcement should be open-ended/future dated for the Settlement Date and otherapplicable fields so the Fund can apply the correct Settlement Date in the Order process once the close
date is known.

•

Subsequent Commitment Orders that have previously sent an Account Registration for the Commitment
order will be sent as stand-alone Order and will not require registration but will require the “AccountRegistration Name” field to be populated.

•

Trade Date (Business Date) will be populated with the commitment close out date.

•Settlement Date will be needed to close out the transaction in AIP although there is no money settlement.

•

Money Amount will be populated with the investor commitment amount.

•

Trade Date (Calendar Date) may be used in certain scenarios when necessary.

•Firms will expect Total Commitment, Fulfilled Commitment and Remaining Commitment fields to be
populated on the 052 = Position record once Commitment Orders are completed.
oReporting should begin after initial call has been made and the commitment period has been closed.

•

Placement fees and commission fields will remain optional and may be populated if necessary.

•In the case of prorated commitment amounts, the Fund will send multiple Order Confirmation records.

Orders32

Best Practice User Guide – Full Edition

Capital Call Order Process•

The Security Announcement should be open-ended/future dated for the Settlement Date and otherapplicable fields so the Fund can apply the correct Settlement Date in the Order process when known.

•

Activity and Distribution Transaction Type 72 = Call Event Client Debit:oFirms that leverage the information received in this Activity record will populate Settlement Date andActivity Related Control Number on the Capital Call Order .

oFirms that don’t leverage the information received in this Activity record will need the Fund to update
the correct Settlement Date on the Order Confirmation record.

•

Trade Date (Business Date) on the order should be populated with be the date the Capital Call Order issubmitted.

•

Settlement Date should be the funding due date.

•If necessary, Funds will provide updated Share Amount on the Order Confirmation record.

•

If commission amount for the transaction is not known, the Commission Amount field on the order shouldbe left blank (do not populate with 0’s).

•

Although not required, RIA/RR information may be provided to the Fund on the order.
o•

If a new RIA/RR information needs to be reported, it should be updated via the Account Maintenancerecord.

After the Capital Call Order is complete, the Firm will expect the Fund to report the invested balance thatis pending valuation on the “Pending Money Value” field on the Position record.

Delayed NAV Purchases
Delayed NAV Purchases are AIP Orders where there is a purchase into a fund, usually a BDC with a monthly
offering period, that will not strike a NAV until several weeks after the trade date and money settlement date;additionally, there is not an escrow fund. For example, for a September 1 trade date period, settlement would
occur on August 28 and the NAV would be struck on September 21.

Orders33

Best Practice User Guide – Full Edition

Process FlowNote:
AIP Orders will complete on Settlement Date and the final NAV/shares will be reported on a non-settling Activity record a
few weeks later

Best Practices for Regular Processing•

On the Order Confirmation, the ‘Estimated or Actual Value Indicator’ should be populated with 1 =Estimated.

•

The price on the Order Confirmation should be based on the previous month’s NAV.

Orders34

Best Practice User Guide – Full Edition•

On the Activity record, the ‘Related Control Number’ should be populated with the Control Number of theOrder.

•

Position records should not be sent on any new investment until after the NAV struck.

Best Practices for Exception Processing•

Scenario 1: TA/Fund is cancelling a completed AIP Order that settled via AIP and reprocesses a newpurchase transaction after order settlement (e.g., an incorrect discount category was applied):o

If the correction is completed after order settlement but before the final NAV is struck (Activity record
with Transaction Type 74 has not been sent).
»o

If the correction is completed after order settlement and after the final NAV is struck (Activity record
with Transaction Type 74 has been sent).
»••

Activity Transaction Type 74 = Delayed NAV Purchase will be used for any AIP initiated Orderand will have corrected information, if any, along with original Order Control Number populated
in the Related Control Number field.

For AIP initiated Orders, if a correction is needed after an Activity record Transaction Type 74 =Delayed NAV Purchase has been sent, a second Activity record with Transaction Type 74 =Delayed NAV Purchase should be sent.
•

Populate Adjustment Indicator of 1 = Adjustment•

The original Order Control Number should be populated in the Related Control Number field.

Scenario 2: A trade that never made it to the fund via AIP in good order (Fund reject of AIP order is an
example) and cannot be resubmitted:o

The trade and money settlement must occur outside of AIP.

oAn Activity record should be sent with a Transaction Type 01 = Direct Purchase as typical for orders
processed outside of AIP but reported in AIP.

Scenario 3: The AIP Order process completes and money settles but the Transaction did not post to TA
system due to an error so transaction type 74 was not sent in the expected timeframe; the intermediary’s
transaction is in good order, but the Trade must be reprocessed by TA.
o

An Activity record with Transaction Type 74 = Delayed NAV Purchase should be sent as soon as
possible.

Placement Fee Order Processing•

If Load Type Indicator ‘9 = Placement Fee’ is indicated on the transaction, the Net/Gross Indicator,
Commission Amount, Commission Percentage and Gross Amount of Trade fields will become ‘Required’
to populate.

Net/Gross Indicator Usage

Orders35

Best Practice User Guide – Full Edition

Below is a list of the Net/Gross Indicators and their descriptions which outlines what the Funds should populate
as the Money Amount on the Confirmation Record when the Net/Gross Indicator field is populated on thetransaction.
Net/Gross Indicator•

1 = Net – Money Amount being settled is Net of Commissions, Fees etc.

•

2 = Gross – Money Amount being settled is Gross of Commissions, Fees etc.

•

3 = Net Down – Commission/Placement Fee Amount is added to the Gross Amount of Trade amount andMoney Amount being settled is Net of Commissions, Fees etc.

•

4 = Gross Up – Commission/Placement Fee Amount is added to the Gross Amount of Trade amount andMoney Amount being settled is Gross of Commissions, Fees etc.

Commission Structure Net/Gross Trade Cases
Trade A

Trade B

Trade C

Trade D

Trade E

Money Amount$100,000$100,000$100,000$100,000$100,000

Net/Gross Indicator

1 = Net2 = Gross

3 = Net Down

4 = Gross Up

Blank

Load Type Indicator

9=
Placement
Fee

9=
Placement
Fee

9=
Placement
Fee

9=
Placement
Fee

Blank

Commission/Placeme
nt Fee Amount$5,000$5,000$5,000$5,000Blank

Gross Amount ofTrade$100,000$100,000$105,000$105,000

Blank$105,000$100,000

Confirmation Record
Money Amount(Settling)

Orders$95,000$100,000$100,00036Best Practice User Guide – Full Edition

ACCOUNT TRANSFER
Transaction Type Descriptions
Account Transfer – Non-ACATS Transfer of shares that is staying within the same firm and the accountrequires to be re-registered.
Broker to Customer Transfer – Non-ACATS Transfer of shares when the account is Broker Controlled at the
Firm and the client is requesting to ‘denetwork’ the account to be Customer Controlled directly at the Fund (Reregistering the account to reflect only the customer’s name).

•

No Registration is required to be transmitted via AIP.

•The Broker is required to provide the Receiving Fund Account Number on the Transfer.

•

The Fund will ‘Reject’ a Broker to Customer Transfer:•o

If the Fund cannot find the Delivering or Receiving Account.

oShare amount exceeds the balance of the account.

The Firm will ‘Exit’ a Broker to Customer Transfer:o

If the Customer requests to cancel the transfer and stays with the broker.

oIf the Firm is required to balance their books based upon the request from Corporate Actions.

Customer to Broker Transfer – Non-ACATS Transfer of shares when the account is Customer Controlled at
the Fund and the client is requesting to be Broker Controlled at the Firm (Re-registering the account to reflect
the firm FBO the client):•

The Broker is required to provide the Delivering Fund Account Number on the Transfer.

•

The Broker can send either a New or Existing Registration to establish the Receiving Firm Account.

•

The Registration must be set-up before or at the same time the Transfer is received at the fund:o

If not, it will be rejected by the Fund.

Broker to Broker Transfer - Non-ACATS Transfer when the entire book of business is moving within one AIP
Firm.

Miscellaneous•

A Security Announcement is not required to transmit an Account Transfer.

•

Transfers using the same account type are not required to provide the paperwork from the sponsors:o

If it is not the same account type, the paperwork is required or else the Transfer cannot occur.

•

The ‘Money Amount’ field will be used to support capital balance funds.

•

The Firms will use the ACATS Related Control Number to support Cost Basis.

•

The Transfer Reason Codes are needed for Cost Basis Purposes:oIf the Transfer Reason Code is both Death and a Custodian Change, the firm should send two (2)separate Transfer records.

Account Transfer

37

Best Practice User Guide – Full Edition

Transfer Types•

Transfer Types designate if the Transfer is a Full Position Transfer or Partial Position Transfer.

•

If the Transaction Type is populated to 01 – Full Fund Position Transfer, the Share Quantity field shouldbe left ‘blank’ or populated with zero (0):o

If the fund is capital balance, the money amount should be populated with zero (0).

oThe Fund will provide the Share Quantity and/or Money Amount in the Confirmation Process.

NOTE:
If the intent is to close the account, please designate the Transfer Type as a Full Position Transfer•

If the Transaction Type is populated to 02 – Partial Fund Position Transfer, the Share Quantity isrequired to be populated:o

If the fund is capital balance, the Money Amount must be provided.

Process Flow Types
Daily Funds – Process Flow Indicator (0 – REITS/BDC Processing)•

Daily funds are any funds that are priced (for example, Non-Traded REITs & BDCs).

•

Process Flow Indicator 0 will be used for all daily funds.

•

The ‘Effective Date’ should be populated with the Trade Date of the transfer but can be past or future
dated.

•The Fund will transmit the acknowledgements within 24 hours.

•

The anticipated Transfer Completion Date on the acknowledgement will be populated with the next
business date.

•

The Firm can cancel the transfer by either transferring the account back to the original account or reachingout to the Fund to transmit a Fund Reject.

Periodic Funds – Process Flow Indicator (1 – Hedge Fund Processing)•

Periodic funds are any funds that are not priced (for example, Hedge Funds).

•

Process Flow Indicator 1 will be used for all periodic funds.

•

The ‘Effective Date’ should be populated with the Trade Date of the transfer but can be past or future
dated.

•The Fund with transmit the acknowledgement within 24 hours.
oThe anticipated Transfer Completion Date on the acknowledgement will be populated with the next
business date.

Account Transfer

38

Best Practice User Guide – Full Edition•

Once the confirmation is successfully transmitted the shares will be moved.

Account Registration•

The Registration record will be required if there is no account established at the firm.

•

If there is an existing account established with shares at the firm, the Registration record should not be
submitted.

Account Transfer

39

Best Practice User Guide – Full Edition

DOCUMENT TRANSFERThe Document Transfer service provides the ability for any AIP member (or their designated transfer agent orservice provider) to send or receive electronic documents securely through the AIP system.

Process FlowBest Practices•

If there is an AIP transaction related to the document, senders should submit the transaction before thedocument, but both should be submitted on the same day.

Document Transfer

40Best Practice User Guide – Full Edition•

Receivers are expected to Acknowledge or Reject documents within 24 hours.

•

If a document is sent to an incorrect receiver, please follow the existing protocols used today for AIP
records and/or documents sent outside of AIP.

•

If a document passes DTCC’s validation but is rejected by the recipient, the sender and receiver need tocommunicate outside of AIP what the issue is and/or how to address it over existing channels.

•

Although the Firm Account Number and Fund Account Number fields are optional, the Firm should
populate one of these fields, likely the BIN, whenever possible.

Note:
These practices are based on pre-implementation working group feedback and will be updated as needed based on Test
and Production usage.

Document Transfer

41

© 2024 DTCC. All rights reserved. DTCC and DTCC (Stylized) are registered and unregistered trademarks of The
Depository Trust & Clearing Corporation.
The services described herein are provided under the “DTCC” brand name by certain affiliates of The Depository Trust &Clearing Corporation (“DTCC”). DTCC itself does not provide such services. Each of these affiliates is a separate legal
entity, subject to the laws and regulations of the particular country or countries in which such entity operates. Please see
www.dtcc.com for more information on DTCC, its affiliates and the services they offer.

Doc Date: January 26, 2024
Publication Code: AIP111
Service: Alternative Investment Products
Title: Best Practice Guide – Full Edition

For More Information
Visit us on the web at:www.dtcc.com/aip