Docupace Glossary of Terms

My Tasks: All items assigned to you as the DP user that are not yet in the workflow for processing.

ePACS: Docupace’s straight through processing system. Stands for Electronic Processing of Applications and Check Service

Mailroom: Unassigned queue for Work Items and Unindexed Documents. These items require you to index and provide additional information for routing.

Unindexed Document: A Document you have scanned into Docupace that needs to be Indexed and assigned a Request Type before it can be routed to the correct location

Work Items: An “Electronic Envelope” of documents or forms to be routed through ePACS that are uniquely identified with an assigned number

Starting Point: The area within Docupace where you go to open new accounts (using the Account Wizard) and perform maintenance on existing accounts.

Account Wizard: Simple, fillable questionnaire you utilize when you launch Starting Point to create a bundle of applicable forms to create a new Work Item

Filing Cabinet: Your “electronic filing cabinet” consisting of a hierarchy of folders and forms. For example, a main Client Folder, Subfolders for accounts within that Client Folder and then Documents within each Subfolder.

Client Folder: Main Folder within the Filing Cabinet for your client, containing their information such as SSN, address, Employer, etc

Client Subfolder: Folders representing different Accounts or other topics such as General Info within your main Client Folder

Client Document: Forms or Documents stored within your Subfolders for each Client

Dashboard: Your homepage, where you see all of your active work items and unindexed documents separated into the queues on the left hand side of the screen

Monitor: All open work items in process, whether they are currently assigned to you or if they have moved on for processing to your HO

Retrieve: Where you can search for any achieved item within the system, existing Clients, previously created work items, previously uploaded documents. You can search in many different ways such as Client Last Name, Work Item ID number, etc

Administration: Here you can perform tasks such as resetting your password, access available reports, download important tools for use of Docupace, etc

Standard File Uploader: Software you can download within the Admin tab that will allow you to automatically move scanned images/files from a specific folder on your PC into Docupace

Direct File Upload (Upload File): A tool that doesn’t require any installation,
allowing you to search for a file on your PC to upload directly into Docupace. Very similar to attaching a file to an email.

Broker Dealer (BD) – In financial services, a Broker Dealer (BD) – In financial services, a broker-dealer is a natural person, a company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and derivatives trading process. [1]

Although many broker-dealers are “independent” firms solely involved in broker-dealer services, many others are business units or subsidiaries of commercial banks, investment banks or investment companies.

When executing trade orders on behalf of a customer, the institution is said to be acting as a broker. When executing trades for its own account, the institution is said to be acting as a dealer. Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer, or they may become a part of the firm’s holdings.

In addition to execution of securities transactions, broker-dealers are also the main sellers and distributors of mutual fund shares.

Registered persons (see FINRA) with a broker-dealer may receive commission for determining suitability in a securities transaction. Examples would be a sale of mutual funds, stocks and/or bonds. The products they may sell are determined by their achieved securities licenses and broker-dealer policies. The menu of products available to a registered person is called the “BD platform”.

Registered Investment Adviser (RIA) – is an investment adviser (IA) registered with the Securities and Exchange Commission or a state’s securities agency. The numerous references to RIAs within the Investment Advisers Act of 1940 popularized the term, which is closely associated with the term investment advisor (spelled “investment adviser” in U.S. financial law). An IA is defined by the Securities and Exchange Commission as an individual or a firm that is in the business of giving advice about securities.

Individuals or firms that receive compensation for giving advice on investing in securities such as stocks, bonds, mutual funds, or exchange traded funds are deemed to be investment advisers. It is also common for investment advisers to manage portfolios of securities. RIAs generally are paid in any of the following ways: a percentage of the value of the assets they manage for clients, an hourly fee, fixed fee, a commission on the securities they sell (if the adviser is also a broker-dealer).

FINRA – In the United States, the Financial Industry Regulatory Authority, Inc. (FINRA) is a private corporation that acts as a self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. It is a non-governmental organization that regulates member brokerage firms and exchange markets. Member brokerage firms register their agents (registered representatives or collectively registered persons) with FINRA. Upon successful completely of securities exams, registered persons become able to sell certain products. For instance, a Series 24 would indicate the ability to supervise Series 7 licensed people.

The government agency which acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission.

Additional info:

  • Rule 17a-3
  • Rule 17a-4

 

U.S. Securities and Exchange Commission (SEC) – is an agency of the United States federal government. It holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation’s stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States.

Real estate investment trust (REIT) – is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and timberlands. Some REITs engage in financing real estate. The law providing for REITS was enacted by the U.S. Congress in 1960. The law was intended to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. REITs differ from other structures in that to avoid incurring liability for U.S. Federal income tax, REITs generally must pay out an amount equal to at least 90 percent of their taxable income in the form of distributions to shareholders. A distribution differs from a dividend in that a distribution is essentially return of capital. REITs can be publicly traded on major exchanges, public but non-listed, or private. The two main types of REITs are Equity REITs and Mortgage REITs. In November 2014, Equity REITs were recognized as a distinct asset class in the Global Industry Classification Standard by S&P Dow Jones Indices and MSCI.

Alternative investment (AI) – is an investment in asset classes other than stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, art, wine, antiques, coins, or stamps and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, carbon credits, venture capital, film production, [4] financial derivatives, and cryptocurrencies. Alternative investments are to be contrasted with traditional investments.

Clearing house – is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions. These transactions may be executed on a futures exchange or securities exchange, as well as off-exchange in the over-the counter (OTC) market. A clearing house stands between two clearing firms (also known as member firms or clearing participants) and its purpose is to reduce the risk of one (or more) clearing firm failing to honor its trade settlement obligations. A clearing house reduces the settlement risks by netting offsetting transactions between multiple counterparties, by requiring collateral deposits (also called “margin deposits”), by providing independent valuation of trades and collateral, by monitoring the credit worthiness of the clearing firms, and in many cases, by providing a guarantee fund that can be used to cover losses that exceed a defaulting clearing firm’s collateral on deposit. Also, it acts as a clearing firm.

Adviser or Advisor – is normally a person that is either registered with a state and/or the SEC and/or a registered person (FINRA). An advisor would be expected to have a deeper knowledge in a specific area of financial services. An adviser’s role may vary, but tends to provide advice to a retail or institutional client.

Advisor can also be used to identify an entity that controls the activity of another entity. See Registered Investment Advisor (RIA).

Office of Supervisory Jurisdiction (OSJ) – is an office identified by the broker-dealer as having supervisory responsibilities for agents (registered persons) and has final approval of new accounts, makes markets or structures offerings.

Risk Tolerance – In economics and finance, risk aversion is the behavior of humans (especially consumers and investors), when exposed to uncertainty, to attempt to reduce that uncertainty. It is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff. For example, a risk- averse investor might choose to put his or her money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves chance of losing value.

An individual retirement account or IRA – is a form of “individual retirement plan”, provided by many financial institutions, that provides tax advantages for retirement savings in the United States. An individual retirement account is a type of “individual retirement arrangement” as described in IRS Publication 590, individual retirement arrangements (IRAs). The term IRA, used to describe both individual retirement accounts and the broader category of individual retirement arrangements, encompasses an individual retirement account; a trust or custodial account set up for the exclusive benefit of taxpayers or their beneficiaries; and an individual retirement annuity, by which the taxpayers purchase an annuity contract or an endowment contract from a life insurance company.

Mutual fund – is a professionally managed investment fund that pools money from many investors to purchase securities. While there is no legal definition of the term “mutual fund”, it is most commonly applied to open-end investment companies, which are collective investment vehicles that are regulated and sold to the general public on a daily basis. They are sometimes referred to as “investment companies” or “registered investment companies”. Hedge funds are not mutual funds, primarily because they cannot be sold to the general public. In the United States mutual funds must be registered with the U.S. Securities and Exchange Commission, overseen by a board of directors or board of trustees, and managed by a Registered Investment Advisor. Mutual funds are subject to an extensive and detailed regulatory regime set forth in the Investment Company Act of 1940. Mutual funds are not taxed on their income and profits if they comply with certain requirements under the U.S. Internal Revenue Code.

529 plans – are named after section 529 of the Internal Revenue Code 26 U.S.C. § 529. 529 plans typically are used to save for and fund post grade school education. While most plans allow investors from out of state, there can be significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from creditors and exemption from state financial aid calculations for investors who invest in 529 plans in their state of residence.

Annuity – is a series of equal payments at regular intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities are classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other interval of time.

DOL Fiduciary Rule – http://www.dolfiduciaryrule.com

Commonly used Acronyms (Both Docupace and Industry)

  • ACAT – Automated Customer Account Transfer
  • AI – Alternative Investments
  • BD – Broker-Dealer
  • BDC – Business Development Company
  • CRM – Client Relationship Management (Salesforce, Red Tail, Smart Office, Outlook, Advisors Assistant, Pareto, Junxure, etc.)
  • ePACS – Electronic Paperless Application Check System
  • FA – Financial Advisor
  • FINRA – Financial Industry Regulatory Authority
  • IGO – In Good Order
  • NAO – New Account Opening
  • NASU – New Account SetUp
  • NIGO – Not in Good Order
  • OSJ – Office of Supervisory Jurisdiction
  • REIT – Real Estate Investment Trust
  • RIA – Registered Investment Advisor
  • RR – Registered Representative
  • SEC – U.S. Securities and Exchange Commission
  • STP – Straight Through Processing
  • TA – Transition Assistant (also Transfer Agent)