Fundserv Dealer Agreement

Fund/SERV, the solution to this widely recognized branch problem has been introduced to automate critical back-office operations. Established in 1986 by DTCC`s subsidiary of the National Securities Clearing Corporation (NSCC), the Fund/SERV was established in collaboration with a sector consortium and provides industry with the capacity to process and flexibility to facilitate the growth of fund companies and their industrial partners, including brokers/traders, banks, insurance companies and other financial intermediaries. Its ability to streamline and accelerate processing time, while significantly reducing operating costs and risks, has led to exponential market growth. In June 2016, this was added to the customer agreement to provide manufacturers with the comfort that distributors collect customer approval to collect their bank accounts for pre-authorized chequage plans. Fund/SERV® is a service offering of the National Securities Clearing Corporation (NSCC), a wholly owned subsidiary of DTCC. The service is subject to NSCC`s current rules, procedures and service manuals, which contain the full terms and conditions of this service. The description of the service provided is used only for informational purposes and NSCC reserves the right to make changes. On February 28, 2010, the Canadian Payments Association introduced Rule H1 to protect consumers from unauthorized deductions from their accounts and to appeal if available. The Canadian Revenue Agency (CRA) has revised its administrative policies with respect to determining withholding rates for non-residents and fund companies required to know the economic beneficiary, tax sovereignty and the right to contractual benefits for clients.

The introduction of funds/SERV® has revolutionized the investment fund sector. Mutual funds attracted public attention in the 1980s and 1990s, with investments reaching record levels. The rapid growth of the market threatened the sector with an unrelenting number of telephone calls, faxes and transfers, which at that time were the usual commercial instruments to support transaction processing. This essentially manual environment has led to considerable challenges, many of which were costly, such as transaction and account errors, considerable delays in processing and coordination challenges – all of which hindered the growth of the industry.