Operations

Worklists Replacing Advanced Search in Wealthscape

December 12, 2022

Starting Friday, December 16, 2022, Advanced Account Search will be replaced in Wealthscape, and you will be re-directed to Worklists instead.

The new label for Advanced Search will be ‘Worklists (Advanced Search)’.

When you click on ‘Worklists (Advanced Search)’ link, Worklists will launch from sidebar panel and you will be able to search with a more exhaustive criteria list which includes all the criteria currently available in Advanced Search.

Notable features of Worklists are:

  • You can save and delete Personal Worklists
  • Increased number of search criteria
  • Up to 20 Registered Representative (RR) Codes for your search
  • If you are entitled to Fee-Based Tools and specify a Security in a Worklist, Security Cross Reference pre-populates with this Security in context when it opens
  • Introduction of new account navigation menu consistent with Wealthscape
  • Sortable and customizable columns for results
  • The information within Worklists is intraday

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Important Dates and Year End Reminders

December 12, 2022

Looking for NL application processing deadlines? Click here.

For important reporting updates for RMDs and annual retirement account fees, click here.

Holiday Phone Hours for ESI Call Center

12/23 – NYSE open until 4 – ESI phones close at 4:00 EST

12/26 – National Life and ESI closed for Christmas Observed

1/2 – National Life and ESI closed for New Year’s Day Observed

ESI BROKERAGE OPERATIONS – IMPORTANT DATES

Dec. 15, 2022        
Roth IRA Conversions – It is strongly recommended forms be received, in good order, by December 15th.  After this date, conversions will be made on a best efforts basis. Under no circumstances can a request be backdated.

Required Minimum Distributions – It is strongly recommended requests be received, in good order, no later than December 15th to ensure proper processing.  This will allow time for corrections to incorrect banking and/or address information.

Alternative Investments 2022 Annual Custody & Valuation Fees – $35 per registered position, $125 per unregistered position, ($500 maximum Fee) are applied to accounts with eligible positions.  If insufficient funds exist in the core fund, an unsecured fee posting will be placed in the account for the outstanding balance of the fee.  Fee postings which are not resolved by February 1, 2023 will be reversed and charged to the Registered Representative’s commissions.

Dec. 27, 2022        
Systems Deadline for New 2022 Periodic Distributions Plans – must be established and approved in ICP by December 27, 2022 in time to pay in 2022.  Beginning December 28, 2022, Fidelity Clearing & Custody will establish periodic distribution plans for 2023 only.

Dec. 31, 2022        
Fidelity Clearing & Custody Fee Processing and Balance Reminders – In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2022 or have a $10,000 balance in the core money market fund on December 31, 2022.

Last trade date for 2022 regular way settlement is December 29, 2022.

Dec. 30th and 31st, 2022 
IRA Distributions
December 30th, 2022 is the last day an EFT can be sent out of an IRA account as a 2022 distribution, if same day settlement is available. 

Distributions processed on December 31st as a check, will be reported in the 2022 tax year.

Dec. 31, 2022 & Jan. 2, 2023     
Fidelity Clearing & Custody – “Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2022 and, if eligible, are charged the fee on January 2nd, 2023.

Jan. 5-31, 2023      
Securities Liquidations to cover Unpaid Fee Postings – ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades.

Please contact ESI Operations at (800) 344-7437 with questions.

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We’re Looking at Annuities Inside Qualified Plans a New Way

December 5, 2022

Summary

Transactions that involve an annuity purchase in an IRA that are funded by an annuity product held in a qualified plan will be reviewed as rollovers rather than replacements.  Reps should update their presentation of such cases on ESI paperwork accordingly. 

Background

After a review of ESI business practices with partners across the industry, the ESI Suitability team will be adopting standards regarding annuity replacements that are consistent with the model (613 S. 1.) set forth by the National Association of Insurance Commissioners (NAIC). 

Among the transactions generally considered exempt from replacement under NAIC Model 613 S. 1., and are therefore NOT considered replacements, are funding sources that generally include:

  • Group life insurance or group annuities where there is no direct solicitation from an insurance producer. 
  • Policies or contracts used to fund:
    • An employee pension or welfare benefit plan that is covered by ERISA
    • 401(a), 401(k) or 403(b) plans
    • Section 414 or 457 plans
    • A nonqualified compensation arrangement established or maintained by an employer or plan sponsor

Operational Impact    

Funding sources that meet the criteria above should be presented as qualified plan rollovers rather than annuity replacements.  A familiar example may be when a client holds an annuity in their 403(b) account and would like to move it to an IRA annuity. This should be presented as a rollover rather than a replacement.

Implementation of this change impacts how reps will present transactions on ESI paperwork.  For new business, the “Qualified Plan Distribution” section on page 1 of the Annuity Purchase and Exchange Disclosure will be completed rather than page 2 and 5 for annuity replacements.   For subsequent deposits, the “Qualified Plan Distribution” section on page 1 of the Source of Funds form will be used rather than the “Annuity” section.  This will reduce the amount of information that is required on each form. 

The change will become effective January 3rd, 2023 and relates to the presentation of transactions on ESI paperwork only.  There are no changes to vendor or state requirements which are not impacted by this change. 

Please contact Direct Business Suitability with questions at 800-344-7437.

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Important Year End Dates and Reminders

November 28, 2022

Looking for NL application processing deadlines? Click here.
For important reporting updates for RMDs and annual retirement account fees, click here.

Holiday Phone Hours for ESI Call Center

12/23 – NYSE open until 4 – ESI phones close at 4:00 EST

12/26 – National Life and ESI closed for Christmas Observed

1/2 – National Life and ESI closed for New Year’s Day Observed

ESI BROKERAGE OPERATIONS – IMPORTANT DATES

Nov. 15, 2022
Annual Maintenance Fee Waiver Request form must be received at ESI by November 15, 2022. This optional form is submitted by Registered Representatives that wish to absorb IRA fees on behalf of client accounts.

Nov. 1-19, 2022      
IRA Custodial Fees – Retirement accounts that have instructions on file to pay the annual maintenance fee via journal or EFT may have the fee deducted from the account as early as November 1st through November 19th, 2022.

Nov. 22, 2022          
IRA Custodial Fees – $40 per account, included as a statement message on September 30, 2022 statement, will be applied to client accounts November 22nd.

Dec. 7, 2022            
Systematic Withdrawals from Retirement Accounts scheduled for payment between December 12th and December 31st will be “pulled forward” in the December 7th nightly cycle.  Trades at the client’s instruction should be placed, if necessary, to satisfy the distribution. Partial distributions will be made on December 31st if cash is available in the account. This deadline will allow for corrective actions on incorrect banking or address information.

Dec. 15, 2022          
Roth IRA Conversions – It is strongly recommended forms be received, in good order, by December 15th.  After this date, conversions will be made on a best efforts basis. Under no circumstances can a request be backdated.

Required Minimum Distributions – It is strongly recommended requests be received, in good order, no later than December 15th to ensure proper processing.  This will allow time for corrections to incorrect banking and/or address information.

Alternative Investments 2022 Annual Custody & Valuation Fees – $35 per registered position, $125 per unregistered position, ($500 maximum Fee) are applied to accounts with eligible positions.  If insufficient funds exist in the core fund, an unsecured fee posting will be placed in the account for the outstanding balance of the fee.  Fee postings which are not resolved by February 1, 2023 will be reversed and charged to the Registered Representative’s commissions.

Dec. 27, 2022          
Systems Deadline for New 2022 Periodic Distributions Plans – must be established and approved in ICP by December 27, 2022 in time to pay in 2022.  Beginning December 28, 2022, Fidelity Clearing & Custody will establish periodic distribution plans for 2023 only.

Dec. 31, 2022          
Fidelity Clearing & Custody Fee Processing and Balance Reminders – In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2022 or have a $10,000 balance in the core money market fund on December 31, 2022.

Last trade date for 2022 regular way settlement is December 29, 2022.

Dec. 30th and 31st, 2022 
IRA Distributions
December 30th, 2022 is the last day an EFT can be sent out of an IRA account as a 2022 distribution, if same day settlement is available. 

Distributions processed on December 31st as a check, will be reported in the 2022 tax year.

Dec. 31, 2022 & Jan. 2, 2023      
Fidelity Clearing & Custody – “Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2022 and, if eligible, are charged the fee on January 2nd, 2023.

Jan. 5-31, 2023       
Securities Liquidations to cover Unpaid Fee Postings – ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades.

Please contact ESI Operations at (800) 344-7437 with questions.

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Reporting Updates for RMD’s and Annual Retirement Account Fees

November 8, 2022

Historically, ESI Operations has leveraged the automated Wealthscape reporting delivery system to send reports on RMD’s and Annual Retirement Account Fees during Q4. Currently, we are unable to utilize this tool to push these reports automatically via email. National Financial Services has been researching the issue for a few weeks and we do not have a current ETA on a resolution.

Luckily, these reports can be ran on an ad-hoc basis via Wealthscape (Reports & Alerts -> Reports). You can search by Report name and click on the drop-down arrow to view the data. The reports are titled “RMD”, and “Retirement Account Annual Fees with Core Cash Balance”.

The “RMD” Report displays all of your client’s with an RMD requirement for a given account. The “Estimated RMD Amount Remaining” Column can be utilized to determine the population of accounts that haven’t yet satisfied their RMD. Some clients may had a Periodic Plan set up for their RMD, and these amounts that haven’t yet been distributed will show in the “Estimated Remaining Periodic Pymt Amnt” column.

The “Retirement Account Annual Fees with Core Cash Balance” report was created by ESI to assist you in identifying client accounts that are subject to the $40.00 annual IRA fee, and currently have insufficient cash to cover. These accounts may require your action to avoid ESI Home Office placing a trade in January, and charging the rep of record $25.00 per trade for the service.

These reports can be customized and filtered in any manner that will assist you in tackling these Operational items. Once you modify a report with your preferences, you can “save as” and it will be saved in your reports for future use. If you have any questions on the reports and the underlying Operational initiatives, please contact our service desk at 1-800-344-7437.

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Product and Operations Updates

November 1, 2022

Operations Reporting Updates: RMD’s and Annual Retirement Account Fees

Historically, ESI Operations has leveraged the automated Wealthscape reporting delivery system to send reports on RMD’s and Annual Retirement Account Fees during Q4. Currently, we are unable to utilize this tool to push these reports automatically via email. National Financial Services has been researching the issue for a few weeks and we do not have a current ETA on a resolution.

Luckily, these reports can be ran on an ad-hoc basis via Wealthscape (Reports & Alerts -> Reports). You can search by Report name and click on the drop-down arrow to view the data. The reports are titled “RMD”, and “Retirement Account Annual Fees with Core Cash Balance”.

The “RMD” Report displays all of your client’s with an RMD requirement for a given account. The “Estimated RMD Amount Remaining” Column can be utilized to determine the population of accounts that haven’t yet satisfied their RMD. Some clients may had a Periodic Plan set up for their RMD, and these amounts that haven’t yet been distributed will show in the “Estimated Remaining Periodic Pymt Amnt” column.

The “Retirement Account Annual Fees with Core Cash Balance” report was created by ESI to assist you in identifying client accounts that are subject to the $40.00 annual IRA fee, and currently have insufficient cash to cover. These accounts may require your action to avoid ESI Home Office placing a trade in January, and charging the rep of record $25.00 per trade for the service.

These reports can be customized and filtered in any manner that will assist you in tackling these Operational items. Once you modify a report with your preferences, you can “save as” and it will be saved in your reports for future use. If you have any questions on the reports and the underlying Operational initiatives, please contact our service desk at 1-800-344-7437.

Alternative Mutual Fund Lists Updated for Q3 2022

Approved and Prohibited Alternative Mutual Funds
The purchase of Alternative Mutual Funds that include inverse and leveraged strategies is not permitted. To assist with what funds may be purchased, there is an Alternative Mutual Fund Available List and a Watch List which is updated quarterly and may be found on the Agent Portal à Products à Investments à Mutual Funds. 

  • The Approved List is a list of approved alternative mutual funds that may be purchased (once training has been completed).
  • The Watch List is the list of alternative mutual funds that the Firm is watching to determine if they may become prohibited in the future due to failing consecutive screens, (two consecutive quarters). If you recommend purchases on the list, please be aware that they may no longer be approved to purchase in the future.
  • The Restricted List is the list of prohibited alternative mutual funds.
    • BROKERAGE: If an attempt to purchase is ma de in a brokerage account, the purchase will be blocked.
    • DIRECT: If purchased in a direct, mutual fund, you will be contacted by Compliance after to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds. 
    • REMOVED FROM APPROVED LIST:If a fund is removed from the Available list (brokerage or direct), Compliance will contact you to let you know that the fund is no longer available for purchase and to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds. 


All three lists can be found on the NL Agent Portal under Products – Investments – Mutual Funds.

Training
Prior to purchasing approved alternative mutual funds, you must first complete required training in FIRE Solutions. The training may be accessed through FIRE Solutions: https://blaze.firesolutions.com/portal/login. The cost is $12.50.  Once you have completed the course, please email your completion certificate to ESITrading@NationalLife.com and this training will be added to your profile.

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Operations Reporting Updates: RMD’s and Annual Retirement Account Fees

October 25, 2022

Historically, ESI Operations has leveraged the automated Wealthscape reporting delivery system to send reports on RMD’s and Annual Retirement Account Fees during Q4. Currently, we are unable to utilize this tool to push these reports automatically via email. National Financial Services has been researching the issue for a few weeks and we do not have a current ETA on a resolution.

Luckily, these reports can be ran on an ad-hoc basis via Wealthscape (Reports & Alerts -> Reports). You can search by Report name and click on the drop-down arrow to view the data. The reports are titled “RMD”, and “Retirement Account Annual Fees with Core Cash Balance”.

The “RMD” Report displays all of your client’s with an RMD requirement for a given account. The “Estimated RMD Amount Remaining” Column can be utilized to determine the population of accounts that haven’t yet satisfied their RMD. Some clients may had a Periodic Plan set up for their RMD, and these amounts that haven’t yet been distributed will show in the “Estimated Remaining Periodic Pymt Amnt” column.

The “Retirement Account Annual Fees with Core Cash Balance” report was created by ESI to assist you in identifying client accounts that are subject to the $40.00 annual IRA fee, and currently have insufficient cash to cover. These accounts may require your action to avoid ESI Home Office placing a trade in January, and charging the rep of record $25.00 per trade for the service.

These reports can be customized and filtered in any manner that will assist you in tackling these Operational items. Once you modify a report with your preferences, you can “save as” and it will be saved in your reports for future use.

If you have any questions on the reports and the underlying Operational initiatives, please contact our service desk at 1-800-344-7437.

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Share Your Thoughts

October 18, 2022

As we’ve said before, feedback is key for us to learn where our strengths are, where there is room for improvement, and how best to move forward with building a better Broker Dealer.  For those who haven’t responded yet, please take the opportunity to share your opinions with us by completing the ESI Annual Sentiment Survey.

Your input is what helps us bring you more solutions, more efficiency and provide better service. Thank you for sharing your voice. 


And don’t forget – everyone who responds to the survey will be entered into a drawing for a smart watch!

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