Quick Take | The Intersection of Lost Property and Omnibus

StopwatchAt the NICSA Strategic Leadership Forum in February, in a breakout session on “‘Who’s in Control? — The New Escheatment Challenges Surfacing Between Mutual Funds and Brokers,” representatives from four financial services firms and session sponsor Keane talked about escheatment in an omnibus environment. Here’s the quick take from that session:

The intersection of lost property and omnibus:

  • Mutual funds are generally distributed directly or through intermediaries.
  • Intermediaries may hold the shares of the mutual fund in their own name for the benefit of their customers.
  • The intermediaries in turn maintain records about their own customers on their own books and records.
  • If the intermediary has lost track of the customer, how can the fund and intermediary help reunite the shares with the owner?
  • Is escheatment the only option?

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