IFT Fund Transfer – SubAccount Allocation

9 views April 8, 2021 April 8, 2021 0

AFFIRM to NextGen Data passing and saving for Fund Transfers

All Fund Transfer data, including subaccount percentages, ArrType and SubType data, and Product Codes are properly populated into the NGEN screens and back out into the ADMTrans.

NextGen Screens for Fund Transfers
NextGen Screens Support Sub-Types for Fund Transfers

There are four Fund Transfer types as defined by the DTCC tx102:

  • 26 – Full One-time Rebalance
    • Performs a one-time rebalance of the entire portfolio of funds. Neither amount (Arrangement.ModalAmt) nor percent (Arrangement.ModalPct) should be specified (as the entire contract value is implied). The carrier may allow/required only Destination funds to be specified. Only the “percent” TransferAmtType is permitted.
  • 27 – Fund Balance Transfer
    • A portion of the current value of one or more existing fund(s) will be transferred (as specified in ArrSource.TransferAmt or TransferPct). Neither amount (Arrangement.ModalAmt) nor percent (Arrangement.ModalPct) should be specified. Source and Destination funds need to be specified. Only “dollar” and “percent” allocation types are permitted (and the combination of “percent” for source, and “dollar” for destination is not permitted).
  • 28 – Percent of Contract Value Transfer – IFT Fund Transfer Phase 2
    • The percentage of the total contract value to be transferred will be specified (in Arrangement.ModalPct). Source and Destination funds need to be specified. Since the exact amount of the transfer is not known (until the market closes and the prices are set), an allocation type of “dollars” is not supported.
  • 29 – Specified Amount Transfer
    • The overall amount of money to be transferred will be specified (in Arrangement.ModalAmt). Source and Destination funds need to be specified. The PPfA needs to indicate (in AllocTypeProduct) each combination of allocation types (dollars, percent, pro rata, etc.) that are allowed.
    • This sub-type exists in two formats: dollar-to-dollar, and dollar-to-percent.

 

Workflow Diagrams – Details, Current Fund Allocation, New Fund Allocation

The following two diagrams illustrate the workflows for the Details, Current Fund Allocation, and New Fund Allocation screens for the different Fund Transfer subtypes.

 

Details Screen

General grid of ArrSubTypes for fast reference, Fund Transfer, TransType=102, ArrType=1:

  • The NGEN detail screen is called “Fund Transfer Details”.
  • There is no start date control for a Fund Transfer.
  • Dropdown options
    • Options are determined by the PPfA
      • Dropdown text for each option is combination of: ArrSubType text, ” – “, and the MarketingName
        • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/ArrSubType/text()
        • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/MarketingName
    • Examples from test client:
      • Full Rebalance – PercentRebal
      • Fund Balance Transfer – Pct to Pct
      • Specified Amount Transfer – Dollar to Dollar
      • Specified Amount Transfer – Dollar to Percent

    • List dropdown items in order of PPfA Sequence
      • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/Sequence
      • If there are multiple AllocTypeProduct entries in a FeatureOptProduct, list them in the order found
    • If there is a default, it should be pre-selected in the dropdown per PPfA boolean value DefaultInd
      • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DefaultInd
    • Restrictions can be made at a sub type level by implementing FeatureOptConflicts based on shell riders.
      • See the section on “PPfA, Values Inquiry Response, and Shell Riders Determine Available Funds” for more details.

 

 

Full Rebalance (subtype 26)
Current Fund Allocation Screen
  • Includes the Contract Information Summary header
  • Section text is “Current Fund Allocation”
  • Table of current fund values, as returned in the 21207 Values Inquiry request
    • Display only the funds that currently have a value
    • Column headings – participation in models and model names will not be displayed in this table for current accounts.
      • Fund Manager
        • Fund Manager can be found for a fund by using:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/PartyID
        • …and matching this PartyID to
          • /TXLife/TXLifeRequest/OLifE/Party/id
        • …and getting the name from
          • /TXLife/TXLifeRequest/OLifE/Party/FullName
      • Fund Name
        • Fund Name can be found in the PPfA under InvestProduct
        • /TXLife/TXLifeRequest/OLifE/InvestProduct/FullName
      • Fund Level Fee
        • Fund level fee can be found for a fund in:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeePct
        • …where the
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeeType
        • …is equal to one of these:
          • 66 – Net Fund Management Fee
          • 5 – Fund Level Fee
          • 6 – Fund Level Other Asset Based Fees
          • 9 – Fund Management Fee
        • There should not be more than one fund level fee for a fund.
        • Display is as a percentage, up to two decimal places (these are typically very small numbers).
          • xxx.xx%
      • Current Fund Value
        • Display as currency
        • Commas to denote thousands
        • Cents will be displayed
      • Current Fund Percent
        • Display with percent symbol
        • Show two decimal places
  • No column is needed for user specification of amounts or percentages – the entire balance will be transferred.
  • If a fund is returned in the 21207 response with a value, and the fund is listed under InvestProduct in the PPfA, then it will be displayed in the table.
  • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
    • If the fund does not have a dollar value do not display it in the grid.
    • If the fund does have a dollar value display the fund and value information in the grid.
      • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
  • No “SourceTransferAmtType” properties there to apply from the PPfA
  • No “SourceInvestProduct” list in PPfA

 

New Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
  • Includes the Contract Information Summary header
  • Section text is “New Fund Allocation”
  • Simple allocation or complex allocation depending on PPfA and VI response.

    • Simple new allocation – VI returns an investment rider, but there are no models to apply to the new allocation.
      • Table to specify new percentages into fund values
      • Column headings
        • Fund Manager
        • Fund Name
        • Fund Level Fee
        • Transfer Percentage Allocation (must total 100%)
          • PPfA DestInvestProduct for list of funds that can be transferred into
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
          • New fund balance values are specified per PPfA DestTransferAmtType – should be “Percentage”
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
          • AFFIRM will only support Percentage for subtype 26
          • 1-100% can be specified for each fund
          • Total percentage is displayed underneath the table
          • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
            • Carriers said these are sometimes modeled for destination.
          • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead, defaults will be used:
            • Percentage numbers will be displayed with two decimal places (xxx.xx%).
            • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
            • PPfA will not be read to get these values:
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
      • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
        • If the fund does not have a dollar value do not display it in the grid.
        • If the fund does have a dollar value display the fund and value information in the grid.
          • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
    • Simple new allocation – VI does not return an investment rider, so no rider allocation rules or models apply, even if modelled in the PPfA.
      • Behavior is same as Simple allocation above.

    • Complex new allocation – VI returns an investment rider, and there are one or more models available for the new allocation.
      • Complex allocation may require selection of the model when multiples are available, via dropdown
        • If only one model is available, the dropdown will not be displayed.
        • If there are multiple complex models to choose from, and the user enters some values and then changes the model in the dropdown, the entered values will be lost.

      • Table to specify new percentages into fund values
        • Column headings
          • Fund Manager
          • Fund Name
          • Fund Level Fee
          • Model Name
          • Fund group name (percentage range)
            • …for each fund group name
              • PPfA DestInvestProduct for list of funds.
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
            • New fund balance values are specified per PPfA DestTransferAmtType – should be “Percentage”
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
            • AFFIRM will only support Percentage for subtype 26
            • 1-100% can be specified for each fund
            • Total column percentage is displayed underneath each column, and overall total underneath the table.
            • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
              • Carriers said these are sometimes modeled for destination.
            • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead, defaults will be used:
              • Percentage numbers will be displayed with two decimal places (xxx.xx%).
              • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
            • PPfA will not be read to get these values:
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
      • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
        • If the fund does not have a dollar value do not display it in the grid.
        • If the fund does have a dollar value display the fund and value information in the grid.
          • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.

 

Fund Balance Transfer (subtype 27)
Current Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
  • Includes the Contract Information Summary header
    • Section text is “Current Fund Allocation”
    • Disclosure text: “Please allocate a percentage to transfer from each fund.”
    • Disclosure text: “The allocation specified will indicate the amount to be transferred from that specific fund.”
    • Table of current fund values, as returned in the 21207 Values Inquiry request
    • Display only the funds that currently have a value
    • Column headings – participation in models and model names will not be displayed in this table for current accounts.
      • Fund Manager
        • Fund Manager can be found for a fund by using:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/PartyID
        • …and matching this PartyID to
          • /TXLife/TXLifeRequest/OLifE/Party/id
        • …and getting the name from
          • /TXLife/TXLifeRequest/OLifE/Party/FullName
      • Fund Name
        • Fund Name can be found in the PPfA under InvestProduct
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/FullName
      • Fund Level Fee
        • Fund level fee can be found for a fund in:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeePct
        • …where the
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeeType
        • …is equal to one of these:
          • 66 – Net Fund Management Fee
          • 5 – Fund Level Fee
          • 6 – Fund Level Other Asset Based Fees
          • 9 – Fund Management Fee
        • There should not be more than one fund level fee for a fund.
        • Display is as a percentage, up to two decimal places (these are typically very small numbers).
          • xxx.xx%
      • Current Fund Value
        • Display as currency
        • Commas to denote thousands
        • Cents will be displayed
      • Current Fund Percent
        • Display with percent symbol
        • Show two decimal places
      • Percentage to Transfer
        • PPfA SourceInvestProduct for list of funds that can be specified as a transfer source
          • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/SourceInvestProduct
        • If a fund is returned in the 21207 response with a value, and the fund is listed under InvestProduct in the PPfA, but the fund is not listed here in the PPfA, then it will be displayed in the table but will not have a field to specify the percentage to transfer.
        • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
          • If the fund does not have a dollar value do not display it in the grid.
          • If the fund does have a dollar value display the fund and value information in the grid.
            • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
        • New fund balance values are specified per PPfA SourceTransferAmtType – should be “Percentage”
          • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/SourceTransferAmtType
        • AFFIRM will only support Percentage for subtype 27
        • Multiple funds can be selected as sources for the transfer.
        • Funds selected as sources for the transfer will NOT be included as destinations for the transfer (on the next New Allocation screen).
        • 1-100% can be specified for each fund for those funds that have values
        • Percentages specified do not need to “add up” to 100%, and no “total” is shown – not necessary.
        • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under SourceInvestProduct
          • Carriers said this is not modeled (but destination sometimes is).
        • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
          • Percentage numbers will be displayed with two decimal places (xxx.xx%).
          • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
        • PPfA will not be read to get these values:
          • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
          • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType

New Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
  • Includes the Contract Information Summary header
  • Section text is “New Fund Allocation”
  • Simple allocation or complex allocation depending on PPfA and VI response.

    • Simple new allocation – VI returns an investment rider, but there are no models to apply to the new allocation.
      • Table to specify new percentages into fund values
      • Column headings
        • Fund Manager
        • Fund Name
        • Fund Level Fee
        • Transfer Percentage Allocation (must total 100%)
          • PPfA DestInvestProduct for list of funds that can be transferred into
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
          • Funds selected as sources on the prior Current Allocation screen will NOT be included as possible destination funds for the transfer.
          • New fund balance values are specified per PPfA DestTransferAmtType – should be “Percentage”
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
          • AFFIRM will only support Percentage for subtype 27
          • 1-100% can be specified for each fund
          • Total percentage is displayed underneath the table
          • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
            • Carriers said these are sometimes modeled for destination.
          • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
            • Percentage numbers will be displayed with two decimal places (xxx.xx%).
            • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
            • PPfA will not be read to get these values:
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
      • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
        • If the fund does not have a dollar value do not display it in the grid.
        • If the fund does have a dollar value display the fund and value information in the grid.
          • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
    • Simple new allocation – VI does not return an investment rider, so no rider allocation rules or models apply, even if modelled in the PPfA.
      • Behavior is same as Simple allocation above.
    • Complex new allocation – VI returns an investment rider, and there are one or more models available for the new allocation.
      • Complex allocation may require selection of the model when multiples are available, via dropdown
        • If only one model is available, the dropdown will not be displayed.
        • If there are multiple complex models to choose from, and the user enters some values and then changes the model in the dropdown, the entered values will be lost.
    • Table to specify new percentages into fund values
      • Column headings
        • Fund Manager
        • Fund Name
        • Fund Level Fee
        • Model Name
        • Fund group name (percentage range)
          • …for each fund group name
            • PPfA DestInvestProduct for list of funds.
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
            • Funds selected as sources on the prior Current Allocation screen will NOT be included as possible destination funds for the transfer.
            • New fund balance values are specified per PPfA DestTransferAmtType – should be “Percentage”
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
            • AFFIRM will only support Percentage for subtype 27
            • 1-100% can be specified for each fund
            • Total column percentage is displayed underneath each column, and overall total underneath the table.
            • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
              • Carriers said these are sometimes modeled for destination.
            • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead, defaults will be used:
              • Percentage numbers will be displayed with two decimal places (xxx.xx%).
              • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
            • PPfA will not be read to get these values:
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
        • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
          • If the fund does not have a dollar value do not display it in the grid.
          • If the fund does have a dollar value display the fund and value information in the grid.
            • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.

 

Dollar to Dollar (subtype 29, new fund allocation is dollars)
Current Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
  • Includes the Contract Information Summary header
    • Section text is “Current Fund Allocation”
    • Disclosure text: “The maximum permitted amount to transfer is 85% of the value from each fund.”
    • Table of current fund values, as returned in the 21207 Values Inquiry request
    • Display only the funds that currently have a value
    • Column headings – participation in models and model names will not be displayed in this table for current accounts.
    • Column headings – different from other “Current” screens, NOTE column order. Current Fund Value column next to Dollar Amount to Transfer column.
      • Fund Manager
        • Fund Manager can be found for a fund by using:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/PartyID
        • …and matching this PartyID to
          • /TXLife/TXLifeRequest/OLifE/Party/id
        • …and getting the name from
          • /TXLife/TXLifeRequest/OLifE/Party/FullName
      • Fund Name
        • Fund Name can be found in the PPfA under InvestProduct
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/FullName
      • Fund Level Fee
        • Fund level fee can be found for a fund in:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeePct
        • …where the
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeeType
        • …is equal to one of these:
          • 66 – Net Fund Management Fee
          • 5 – Fund Level Fee
          • 6 – Fund Level Other Asset Based Fees
          • 9 – Fund Management Fee
        • There should not be more than one fund level fee for a fund.
        • Display is as a percentage, up to two decimal places (these are typically very small numbers).
          • xxx.xx%
      • Current Fund Percent
        • Display with percent symbol
        • Show two decimal places
      • Current Fund Value
        • Display as currency
        • Commas to denote thousands
        • Cents will be displayed
      • Dollar Amount to Transfer
        • PPfA SourceInvestProduct for list of funds that can be specified as a transfer source
          • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/SourceInvestProduct
        • If a fund is returned in the 21207 response with a value, and the fund is listed under InvestProduct in the PPfA, but the fund is not listed here in the PPfA, then it will be displayed in the table but will not have a field to specify the amount to transfer.
        • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
          • If the fund does not have a dollar value do not display it in the grid.
          • If the fund does have a dollar value display the fund and value information in the grid.
            • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
        • New fund balance values are specified per PPfA SourceTransferAmtType – should be “Amounts”
          • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/SourceTransferAmtType
        • AFFIRM will only support Amounts for subtype 29
        • Multiple funds can be selected as sources for the transfer.
        • Funds selected as sources for the transfer will NOT be included as destinations for the transfer (on the next New Allocations screen).
        • Dollar amounts can be specified for each fund for those funds that have values.
        • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under SourceInvestProduct
          • Carriers said this is not modeled (but destination sometimes is).
        • Upon entry, if any Dollar Amount to Transfer value is above 85% of the current value, the user is prevented from submitting the transaction.
          • The error is displayed at the top of the screen, where errors are usually displayed.
          • “The Amount to Transfer from [fund name] is greater than [dollar amount = to 85%], or 85% of the fund value, and is not permitted due to potential fluctuation of market conditions. To specify a larger amount, use a full rebalance or percentage transfer type.”
          • The row data and Amount to Transfer text will turn red if the dollar value is over 85% of the fund total.
          • This is implemented because market conditions may reduce the value of the account below the specified amount before the transaction goes through, which will result in an error from the DTCC, preventing the transfer from happening.
        • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
          • Percentage numbers will be displayed with two decimal places (xxx.xx%).
          • Dollar amount figures will be displayed including cents, with commas for thousands ($x,xxx.xx)
          • Dollar amount figures will be input including cents ($x.xx)
          • PPfA will not be read to get these values:
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
            • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType

 

New Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
  • Includes the Contract Information Summary header
  • Section text is “New Fund Allocation”
  • Simple allocation or complex allocation depending on PPfA and VI response.

    • Simple new allocation – VI returns an investment rider, but there are no models to apply to the new allocation.
      • Amount to allocate is displayed, based on values entered on Current Allocation screen
        • This number will decrease as the user enters amounts into the fund allocations
        • This number with become red color font if it becomes negative (user has allocated over the amount entered in the Current Allocation screen)
      • Amount allocated is displayed
        • This number will increase as the user enters amounts into the fund allocations
      • Table to specify new percentages into fund values
        • Column headings
          • Fund Manager
          • Fund Name
          • Fund Level Fee
          • Transfer Amount for Each Fund
            • PPfA DestInvestProduct for list of funds that can be transferred into
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
            • Funds selected as sources on the prior Current Allocation screen will NOT be included as possible destination funds for the transfer.
            • New fund balance values are specified per PPfA DestTransferAmtType – should be “Amounts” in this case for a 29
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
            • Dollar amount can be specified for each fund
            • Total (amount) is displayed underneath the table
            • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
              • Carriers said these are sometimes modeled for destination.
            • Only non-negative numbers are allowed.
            • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
              • Percentage numbers will be displayed with two decimal places (xxx.xx%).
              • Dollar amount figures will be displayed including cents, with commas for thousands ($x,xxx.xx)
              • Dollar amount figures will be input including cents ($x.xx)
              • PPfA will not be read to get these values:
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
      • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
        • If the fund does not have a dollar value do not display it in the grid.
        • If the fund does have a dollar value display the fund and value information in the grid.
          • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
    • Simple new allocation – VI does not return an investment rider, so no rider allocation rules or models apply, even if modelled in the PPfA.
      • Behavior is same as Simple allocation above.
    • Complex new allocation will be unsupported for Specified Amount Transfer to Dollars.

 

Dollar to Percent (subtype 29, new fund allocation is percent)
Current Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
    • Includes the Contract Information Summary header
    • Section text is “Current Fund Allocation”
    • Disclosure text: “The maximum permitted amount to transfer is 85% of the value from each fund.”
    • Table of current fund values, as returned in the 21207 Values Inquiry request
    • Display only the funds that currently have a value
    • Column headings – participation in models and model names will not be displayed in this table for current accounts.
    • Column headings – different from other “Current” screens, NOTE column order. Current Fund Value column next to Dollar Amount to Transfer column.
      • Fund Manager
        • Fund Manager can be found for a fund by using:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/PartyID
        • …and matching this PartyID to
          • /TXLife/TXLifeRequest/OLifE/Party/id
        • …and getting the name from
          • /TXLife/TXLifeRequest/OLifE/Party/FullName
      • Fund Name
        • Fund Name can be found in the PPfA under InvestProduct
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/FullName
      • Fund Level Fee
        • Fund level fee can be found for a fund in:
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeePct
        • …where the
          • /TXLife/TXLifeRequest/OLifE/InvestProduct/Fee/FeeType
        • …is equal to one of these:
          • 66 – Net Fund Management Fee
          • 5 – Fund Level Fee
          • 6 – Fund Level Other Asset Based Fees
          • 9 – Fund Management Fee
        • There should not be more than one fund level fee for a fund.
        • Display is as a percentage, up to two decimal places (these are typically very small numbers).
          • xxx.xx%
    • Current Fund Percent
      • Display with percent symbol
      • Show two decimal places
    • Current Fund Value
      • Display as currency
      • Commas to denote thousands
      • Cents will be displayed
    • Dollar Amount to Transfer
      • PPfA SourceInvestProduct for list of funds that can be specified as a transfer source
        • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/SourceInvestProduct
    • If a fund is returned in the 21207 response with a value, and the fund is listed under InvestProduct in the PPfA, but the fund is not listed here in the PPfA, then it will be displayed in the table but will not have a field to specify the amount to transfer.
    • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
      • If the fund does not have a dollar value do not display it in the grid.
      • If the fund does have a dollar value display the fund and value information in the grid.
        • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
    • New fund balance values are specified per PPfA SourceTransferAmtType – should be “Amounts”
      • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/SourceTransferAmtType
    • AFFIRM will only support Amounts for subtype 29
    • Multiple funds can be selected as sources for the transfer.
    • Funds selected as sources for the transfer will NOT be included as destinations for the transfer (on the next New Allocations screen).
    • Dollar amounts can be specified for each fund for those funds that have values.
    • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under SourceInvestProduct
      • Carriers said this is not modeled (but destination sometimes is).

    • Upon entry, if any Dollar Amount to Transfer value is above 85% of the current value, the user is prevented from submitting the transaction.
      • The error is displayed at the top of the screen, where errors are usually displayed.
      • “The Amount to Transfer from [fund name] is greater than [dollar amount = to 85%], or 85% of the fund value, and is not permitted due to potential fluctuation of market conditions. To specify a larger amount, use a full rebalance or percentage transfer type.”
      • The row data and Amount to Transfer text will turn red if the dollar value is over 85% of the fund total.
      • This is implemented because market conditions may reduce the value of the account below the specified amount before the transaction goes through, which will result in an error from the DTCC, preventing the transfer from happening.
    • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
      • Percentage numbers will be displayed with two decimal places (xxx.xx%).
      • Dollar amount figures will be displayed including cents, with commas for thousands ($x,xxx.xx)
    • Dollar amount figures will be input including cents ($x.xx)
    • PPfA will not be read to get these values:
      • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
      • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType

 

New Fund Allocation Screen
  • Screen behavior as determined by the Fund Transfer SubType selection from the Details Screen
  • Includes the Contract Information Summary header
  • Section text is “New Fund Allocation”

  • Simple allocation or complex allocation depending on PPfA and VI response.
    • Simple new allocation – VI returns an investment rider, but there are no models to apply to the new allocation.
      • Table to specify new percentages into fund values
        • Column headings
          • Fund Manager
          • Fund Name
          • Fund Level Fee
          • Transfer Percentage Allocation (must total 100%)
            • PPfA DestInvestProduct for list of funds that can be transferred into
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
            • Funds selected as sources on the prior Current Allocation screen will NOT be included as possible destination funds for the transfer.
            • New fund balance values are specified per PPfA DestTransferAmtType – should be “Percentage” in this case for a 29
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
            • 1-100% can be specified for each fund
            • Total percentage is displayed underneath the table
            • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
              • Carriers said these are sometimes modeled for destination.
            • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
              • Percentage numbers will be displayed with two decimal places (xxx.xx%).
              • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
              • PPfA will not be read to get these values:
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
      • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
        • If the fund does not have a dollar value do not display it in the grid.
        • If the fund does have a dollar value display the fund and value information in the grid.
          • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.
    • Simple new allocation – VI does not return an investment rider, so no rider allocation rules or models apply, even if modelled in the PPfA.
      • Behavior is same as Simple allocation above.
    • Complex new allocation – VI returns an investment rider, and there are one or more models available for the new allocation.
      • Complex allocation may require selection of the model when multiples are available, via dropdown
        • If only one model is available, the dropdown will not be displayed.
        • If there are multiple complex models to choose from, and the user enters some values and then changes the model in the dropdown, the entered values will be lost.
        • Table to specify new percentages into fund values
          • Column headings
          • Fund Manager
          • Fund Name
          • Fund Level Fee
          • Model Name
          • Fund group name (percentage range)
            • …for each fund group name
            • PPfA DestInvestProduct for list of funds.
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/DestInvestProduct
            • Funds selected as sources on the prior Current Allocation screen will NOT be included as possible destination funds for the transfer.
            • New fund balance values are specified per PPfA DestTransferAmtType – should be “Percentage” in this case for a 29
              • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/DestTransferAmtType
            • 1-100% can be specified for each fund
            • Total column percentage is displayed underneath each column, and overall total underneath the table.
            • The ACORD model includes MinAmt, MaxAmt, MinPct, and MaxPct under DestInvestProduct
              • Carriers said these are sometimes modeled for destination.
            • RoundingPrecision and InterestRoundType will not be read from the PPfA; instead defaults will be used:
              • Percentage numbers will be displayed with two decimal places (xxx.xx%).
              • Percentage numbers will only allow input of whole numbers (xxx%), no decimal percentages.
              • PPfA will not be read to get these values:
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/RoundingPrecision
                • /TXLife/TXLifeRequest/OLifE/PolicyProduct/AnnuityProduct/FeatureProduct/FeatureOptProduct/AllocTypeProduct/InterestRoundType
      • There are infrequent instances where a fund can be returned in the 21207 response, even though it does not exist in the PPfA.
        • If the fund does not have a dollar value do not display it in the grid.
        • If the fund does have a dollar value display the fund and value information in the grid.
          • In this case, the columns for Fund Manager and Fund Level Fee may not have values because they could not be returned from the PPfA.

 

Workflow Diagrams – Suitability and Notes

The following diagram illustrates the workflow through the Suitability and Notes screens.

 

Suitability Screen

Suitability questions will be displayed specific to the Fund Transfer activity, as configured by the client.

  • The name of the screen is configured for the client.
    • This is per subscription Order.UI.Suitability.TabHeader
    • This value is seeded into NGEN screens as SuitabilityTabHeader

 

Notes Screen

Notes screen will be same the same implementation as other IFT actions so far (Withdrawals, Asset Rebalancing) and will allow the creation of notes and attachments for the transaction.

 

Summary Screen 

Summary screen workflow diagram.

Summary screen is based upon existing IFT Summary screen, with some notable updates and changes.

 

  • Details section is called “Program Details – Transfer”
    • Fields
      • Transfer ID: the AFFIRM transaction Id [XXX-XXXX-XXX]
        • Transaction Created Date: date and time
        • Program Type: name of subtype selected in Details screen dropdown

 

  • New section called “Current Funds Allocation”
    • Based on the Current Funds Allocation screen
    • Display depends on the transfer subtype selected in Details screen dropdown
      • Full Rebalance – Percentage Rebalance (26)
        • Table of current fund balances. Only funds with balances are included.
          • Fields
            • Fund Manager
            • Fund Name
            • Fund Level Fee
            • Current Fund Value
            • Current Fund Percent
      • Fund Balance Transfer – Percent to Percent (27)
        • Table of current fund balances. Only funds with balances are included.
          • Fields
            • Fund Manager
            • Fund Name
            • Fund Level Fee
            • Current Fund Value
            • Current Fund Percent
            • Percentage to Transfer from Each Fund: as user specified on the Current Funds Allocation screen
      • PHASE 2 – Percent of Contract Balance Transfer (28)
      • Specified Amount Transfer – Dollar to Dollar (29)
        • Table of current fund balances. Only funds with balances are included.
          • Fields
            • Fund Manager
            • Fund Name
            • Fund Level Fee
            • Current Fund Percent
            • Current Fund Value
            • Dollar Amount to Transfer: as user specified on the Current Funds Allocation screen
      • Specified Amount Transfer – Dollar to Percent (29)
        • Table of current fund balances. Only funds with balances are included.
          • Fields
            • Fund Manager
            • Fund Name
            • Fund Level Fee
            • Current Fund Value
            • Current Fund Percent
            • Transfer Percentage Allocation: as user specified on the Current Funds Allocation screen

 

  • New section called “New Funds Allocation”
    • Based on the New Funds Allocation screen
      • Display depends on the transfer subtype selected in Details screen dropdown
        • Full Rebalance – Percentage Rebalance (26)
          • If a model was specified (or default selected)
            • “Investment model for new fund allocation: ” [model name]
          • Table of specified destination funds.
            • Fields
              • Fund Manager
              • Fund Name
              • Fund Level Fee
              • Transfer Percentage Allocation: as user specified on the New Funds Allocation screen
        • Fund Balance Transfer – Percent to Percent (27)
          • If a model was specified (or default selected)
            • “Investment model for new fund allocation: ” [model name]
          • Table of specified destination funds.
            • Fields
              • Fund Manager
              • Fund Name
              • Fund Level Fee
              • Transfer Percentage Allocation: as user specified on the New Funds Allocation screen
        • PHASE 2 – Percent of Contract Balance Transfer (28)
        • Specified Amount Transfer – Dollar to Dollar (29)
          • Model cannot be specified for Dollar to Dollar, so no text with a model name.
          • Table of specified destination funds.
            • Fields
              • Fund Manager
              •  Fund Name
              • Fund Level Fee
              • Transfer Amount for Each Fund: as user specified on the New Funds Allocation screen
        • Specified Amount Transfer – Dollar to Percent (29)
          • If a model was specified (or default selected)
            • “Investment model for new fund allocation: ” [model name]
          • Table of specified destination funds.
            • Fields
              • Fund Manager
              • Fund Name
              • Fund Level Fee
              • Transfer Percentage Allocation: as user specified on the New Funds Allocation screen

 

  • Suitability section
    • Section title is named the same as the screen, ex. “Best Interest”
    • Includes suitability questions for the Fund Transfer

 

  • Notes section
    • Includes Notes from this transaction

 

  • Audit information
    • All audit info for this transaction
  • The PDF of the Summary screen will include all the existing report sections as well as the new sections added for Fund Transfers.

 

Forms/Submit Screen

The DTCC Fund Transfer tx102 transaction does not support attachments. This decision was made years ago by DTCC after carriers expressed no need at the time for attachments with the transaction. AFFIRM started development with the idea that carriers would actually need form support in cases where there isn’t a signature on file for the Distributor; however the only way to support this at the present time would be implementation of the DTCC attachment service. This integration is deferred functionality for now.

However, AFFIRM will still support the inclusion of forms for a Fund Transfer transaction. Such forms can be configured and will be displayed for the user on the Forms/Submit screen, but they will not be transmitted to the DTCC with the tx102 message for a Fund Transfer.

Configurations will remain in place to enable the wet signature upload for Fund Transfer; however this is not recommended in practical use as the uploaded form will not be included in the tx102 message.

Business rules, generally speaking, are that forms will not be required for a Fund Transfer transaction. Since the money is staying within the contract the forms are not usually required.

The same functionality built for other IFT features will apply to Funds Transfer for Forms/Submit screen:

  • Required and optional forms configured by the Carrier or Distributor will appear in the grids.
  • User can add or remove the optional forms.
  • User can view the selected forms as a PDF.
  • There is the standard IFT checkbox and Submit Transaction button.
  • Approvals can be required for the transaction prior to transmission to DTCC.
    • Subscription Order.SubmitAction.SkipApproval = 0 will cause approvals to be required

 

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