Mutual Fund Cleanup (MFC)

A mutual fund cleanup (MFC) is a nonstandard transfer that allows a deliverer to recoup incentive charges associated with the transfer of mutual fund assets that were included in earlier ACATS transfers but did not successfully settle through the ACATS-Fund/SERV interface. These assets then were subsequently re-registered outside ACATS. The cleanup reverses the settlement incentive money charged to the deliverer, and credited to the receiver, when ACATS prepared the original transfer for settlement.

The deliverer provides the new fund customer account number at the receiver, which the deliverer has received from the fund, as verification that the new mutual fund asset has been successfully re-registered into the receiver's account at the fund.

The receiver can reject the cleanup transaction only on the same day that the deliverer enters it. The receiver uses reject code 27 in this case. If the receiver does not reject the transaction, ACATS moves the transfer to the 310–Settle Close status at the end of the day.