NFS and Fidelity: 1st & 3rd Party Transfers

Money Movement is interpreted as such. Each letter represents a person on an account.

                     Fidelity                               Bank

1st party:       A   B         -------------->  A  B   

3rd party       A   B        ------------->  A 

The 3rd party transfer, account holder B has lost interest in the money moving out.

In the first party transfer, all parties have access to receiving account (Bank).

**Always have paperwork approved before submitting ICP request, but check if your transaction is 1st or 3rd Party. When you mock up a money movement request in ICP, this platform will show you whether the relationship is 1st or 3rd party and ICP will also determine if transactions are Same, Common, or Non-Common for transactions and standing instructions.

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Description and key points from Fidelity

In December 2013 the SEC approved new FINRA Rules 3110 (Supervision) and 3120 (Supervisory Control System) to replace NASD Rules 3010 (supervision), 3012 (Supervisory Control System) and added provisions of the NYSE Rules and effective as of Dec 1st 2014.

This new rule requires that a third party transmittal of funds or securities is required under the rule if all acct owners on the sending account are not account owners in the receiving account. If all account owners on the original account are account owners on the receiving account, a third-party transmittal of funds notice is not required.

To explain further the FINRA rule 3110 allows a journal to be classified as a first party transaction if all account owners on the original account are account owners on the receiving account but the number of account owners on the sending and receiving accounts do not need to be the same as long as all the account owners registered on the sending account are also registered on the receiving account.

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Fidelity posts news and insight under Menu, there are subtabs, click on Resources and then once in that subsection you can click on Insight & Outlook, here is where you can find the article I attached to this support center article.