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Unclaimed Property Relating to Brokers and Dealers – Reference SheetSchedule of Events for Article V-ADecember 10January 10First class mailing deadlineCut-off date – if funds have become dormant in the year prior to this date, they shouldbe included in this report cycleCertified mailing deadlineMarch 10Final report and remittance dueDecember 31How to Report (due 3/10) - Include the following when reporting:1.2.3.Account details of the funds you are transferring in an approved formatRemittance of cash or securitiesVerification and Checklist (Form AC2709 or Electronic VCL)AccountDetailsRemittanceof Cash orSecuritiesVerification& ChecklistMake sure the totalamount is the sameon all three partsMore details, including forms and contact information, can be found at: icable Property TypesProperty TypeProperty Type DescriptionDormancy Period1ICredit balances in trading and investment accounts withtrusts, brokers, investment firms, etc., includingoutstanding checks issued to customers3 years4ACash over receipts-dividends and other3 years4BBond interest over receipts3 years4CStock over receipts-dividends and other3 years4DOther over receipts3 years4E3 years4PUnidentified overagesOther distributions resulting from ownership interest or debtobligationStock over receipts-dividends and other, shares4QOther over receipts-shares3 years4RUnidentified overages-sharesOther distributions resulting from ownership interest or debtobligation-sharesWages, payroll, salaries, commissions, pensionpayments, CMTASecurities long in customers’ trading, investment, or trustaccountsSecurities long in customers’ trading, investment, or trustaccounts-sharesLate filing interest3 years4F4S8A8F8P8X3 years3 years3 years3 years3 years3 years
Unclaimed Property Relating to Brokers and DealersThe following information corresponds to Article V-A of New York’s Abandoned Property Law (APL). For moreinformation, refer to Article V-A of the statute.This document includes the following sections:Unclaimed PropertyStatutory Considerations in Addition to Article V-ASchedule of Events for Article V-AImportant IssuesDue DiligenceMailing RequirementsRemittanceSecurity DeliveryReport Samples
Unclaimed PropertyUnclaimed property subject to Article V-A of the APL includes dormant customer accounts, uncashed checks, andwages. If the broker or dealer is incorporated in New York State, overpayment amounts and securities held forunknown owners are also subject to the statute. There are specific record retention requirements for brokers anddealers.Statutory Considerations in Addition to Article V-A – Brokers and DealersArticle V and Section 1315 of New York’sAbandoned Property LawHolders Not Authorized to ConductBusiness in New York StateIn addition to Article V-A, brokers and dealers aresubject to the statutory requirements of Article V and§1315 of the APL. For more information, refer to§1312 of the APL extends statutory coverage to anybroker or dealer that:Article V and §1315 of the statute and to OUF’sGeneral Corporation document. Abandoned property related to Article V and §1315may be included with your Article V-A report. Due Diligence§1422 of the APL requires that, at least 90 days priorto your final report, a first class mailing be made toeach person whose name is expected to appear onthe report unless the address is unknown or theholder can demonstrate that the address it has for theowner is not the owner’s current address. In addition,at least 60 days prior to your final report, a certifiedmailing, return receipt requested, must be made toeach person whose name is expected to appear onthe report whose abandoned property is valued inexcess of 1,000 unless a claim has been initiatedsince the first class mailing was sent, or the first classmailing was returned as undeliverable.In addition, in §501.2.b.iii, certified mailing is requiredfor all dividend reinvestment shares, including mutualfunds (book entry shares only).Is chartered or organized in another stateand not authorized to do business in NewYork andHolds unclaimed property payable to aperson whose last known address is withinNew York.Such reporting organizations are subject to the samestatutory reporting requirements as organizationsdoing business in New York.
Schedule of Events for Article V-A – Brokers and DealersDecember 10By this date: Send a first class mailing to each person or entity whose name appears on your report of abandonedproperty and request a signed written statement from the owner that acknowledges the property’sexistence. This requirement does not apply to those accounts that meet the exclusionary provisions of§1422. Notify and educate internal communications staff about the due diligence letters for effective processingwhen the rightful owner contacts your organization. Reactivate all accounts of owners who respond to the mailing. Do not include these accounts on yourreport.Prior to December 31 Send certified mail to each owner of securities in a dividend reinvestment plan or mutual funds (bookentry) requesting written communication to keep the items active.December 31For the purposes of determining abandoned property, a broker or dealer’s year runs from January 1 throughDecember 31. December 31 is the cut-off or ending date for the reporting period. Use it when identifyingabandoned accounts/items.January 1 through March 10During this period, review your records and collect data related to any account/item that may be dormant andsubject to reporting.If you have an account/item subject to reporting: Compile the data in one of our reporting formats so that you may submit it as your final report.If you do not have any items subject to reporting: Keep a record of your review. Do not send preliminary or negative (zero balance) reports.January 10By this date: If an owner has not responded to the first class mailing, or if the first class mailing was not returned asundeliverable, and the value of all unclaimed property held for the owner exceeds 1,000, you arerequired to send a second notification via certified mail, return receipt requested.o You may charge the cost of the certified mailing against the property’s value.Reactivate all accounts of owners who respond to the mailing. Do not include these accounts on yourreportoNote: we consider a return receipt to be customer contact if the receipt bears the signature of theaccount owner. Verify return receipt signatures against the other signature records you may havefor an owner.
March 1 through March 10During this period: Finalize the report.Arrange for payment.Submit the report, payment, and a Verification and Checklist by the close of business onMarch 10.Important Issues – Brokers and DealersDormant Customer AccountsRoth IRADormant customer accounts are reportable to NewYork State if payable to a resident of this state. Thosestockbrokers incorporated in New York State are alsorequired to remit foreign and unknown residentaccounts. Dormant accounts held for non-New Yorkresidents may be subject to the abandoned propertylaws of other states.While a Roth IRA is not subject to the mandatorydistribution rules during the original owner’s lifetime,confusion may nonetheless exist among both thepublic and the holder community as to the propertreatment of this product with respect to the reportingrequirements of the APL. Accordingly, for the purposeof consistency, OUF will not penalize reportingorganizations for treating a Roth IRA in the samemanner as the traditional IRA and reporting a RothIRA in the year the owner reaches the age ofmandatory distribution.IRA and Keogh AccountsIn the absence of contact/activity within the last threeyears, report an individual retirement account (IRA) orKeogh account in the cut-off year in which theaccount’s owner reached or surpassed the mandatorydistribution age as prescribed by the IRS. Report aneducational savings IRA (Coverdell EducationalSavings Account, CESA) in the cut-off year in whichthe account’s owner reached age 30. For an IRA, ifyou cannot reasonably obtain the owner’s date ofbirth, presume the owner was 21 on the account’sopening date. For a CESA, use the account openingdate as the account owner’s date of birth.Reported amounts constitute distributions from theIRA. In reporting, use the property type that reflectsthe nature of the account. For example, use 1I if theproceeds had been held in a trading or investmentaccount. In the Date field, enter the date on which theowner reached the age of mandatory distribution. Inthe Description of Security field, enter IRA. Thisclarifies that you are not reporting the accountprematurely.Record RetentionThe law requires that brokers and dealers retainrecords relative to abandoned property filings for aperiod of 10 years following the year in which therecords were created.Uncashed ChecksUncashed checks issued by brokers to theircustomers or other brokers in payment of dividends,bond interest, principal, or other customer creditbalances are reportable to New York if payable to aresident of this state. Additionally, if a brokerincorporated in New York issues checks to foreignand unknown owners, they are reportable to NewYork. Since the funds represent amounts due tocustomers, a three-year dormancy period applies.Unclaimed Overpayments – Dividends,Interest and SecuritiesBrokerage firms incorporated in New York and NewYork partnerships are required to report all unclaimedoverpayment amounts and securities held forunknown owners. A three-year dormancy periodapplies. Such amounts held by a non-New Yorkcorporation or partnership are reportable to theholder’s state of incorporation.
Due Diligence – Brokers and DealersHolders of abandoned property are required to conduct due diligence in the form of mailings. The costs forcompleting certified mailing due diligence may be charged individually to the abandoned accounts subject to the duediligence effort. However, the costs for completing the first class mailing requirement cannot be offset. You may nottake a bulk deduction against the report’s total value. A positive customer response to any due diligence attemptnegates the need for further due diligence actions on an account.Exercise due caution in attempting to contact entitled owners who reside in politically sensitive countries as definedby the U.S. Department of Treasury’s Office of Foreign Assets Control. Certified mailing requirements do not apply toresidents of foreign countries. Address any questions pertaining to this subject to our Director of Audits.Mailing RequirementsFirst Class and Certified Mailings§1422 of the APL requires that all organizations do the following: At least 90 days prior to their final report/remittance date, send a first class mailing to each ownerwhose name is expected to appear on that report unless:o The address for the owner is unknown; oro The holder can demonstrate that the address it maintains for the owner is not the owner’scurrent address. Note – if you use an address validation service and find a new address for the owner,you may send the mailing to the new address but you should not change the originaladdress on your report.o The items to be reported are valued at 20 or less and are being reported in the aggregate, inwhich case the owner’s name will not appear on the report, therefore a mailing is not required. At least 60 days prior to their final report/remittance date, send a certified mailing, return receiptrequested, to each owner whose name is expected to appear on that report with abandoned propertyvalued in excess of 1,000 unless:o A claim has been initiated since the first class mailing was sent, oro The first class mailing was returned as undeliverable, oro The last known address is outside of the United States.In the calendar year prior to reporting the funds, send a certified mailing to account owners of dormantdividend reinvestment plans or mutual funds (book entry).And CostsYou may deduct the mailing costs for certified mail. Deduct such charges from each item for which you aremailing the notice, or one item if you are combining similar items for a specific owner into one item. You may notmake a bulk deduction against the final remittance.Multiple ItemsWhere feasible, if you are reporting more than one item for the same customer, one letter should address all ofthe items you are reporting.Multiple OwnersFor cases in which multiple owners of an item have different addresses, you must send a letter to each owner.You may deduct the additional costs of mailing a certified notice to more than one address.
Wages and Dividend Reinvestment Accounts – Article VArticle V requires you to send notification to the apparent owners of securities that are enrolled in reinvestmentplans. This notification, which is to be sent via certified mail, return receipt requested, must advise owners that inthe absence of establishing written communication with the holder their securities will be delivered to the StateComptroller as abandoned property. A return receipt signed by the owner of the property is considered contact.Additionally, Article V stipulates that owners of unclaimed wages be notified at the last known address of recordvia first class mail.In either of the above cases, the notifications must be sent in the calendar year prior to the year in which you arerequired to deliver the property to the State Comptroller. You may not deduct the cost of sending thesenotifications from the value of the abandoned property.RemittanceSubmit your remittance at the time you file a report. The remittance should be equal to the sum of the values ofthe accounts being reported. Pay your remittance by electronic transfer, check, or by using the Security DeliveryInstructions.Electronic Funds TransferElectronic funds transfer is available to make payment of the amount due for your report of abandoned property.Instructions, including the account and routing number information, are linked in the Forms area of the website.ChecksMake checks payable to Comptroller, State of New York. You should mail it to the following address:New York State Office of the State ComptrollerOffice of Unclaimed FundsRemittance Control, 2nd floor110 State StreetAlbany, New York 12236Include the letters ‘OUF’ and the Date/Time stamp in the memo and advice areas of your check if you sent yourreport account details using one of our electronic reporting methods. This will help us apply your funds correctly.In accordance with OUF’s internal control procedures, send all payments to the above address. Do not send anychecks to our New York City office.SecuritiesDeliver securities to the Comptroller using the current instructions, available on our website. Use the mostcurrent version; they are kept updated regularly.
Delivery of SecuritiesYou must deliver all reported security positions to the Office of Unclaimed Funds’ (OUF) custodian at the time you filethe abandoned property report.Remove restricted legends from securities (in any form) before delivery. If a restricted legend must remain on thesecurity, the reporting organization must provide detailed instructions including the type of restriction and applicablerestriction dates.To deliver securities to the OUF, follow the steps below and use one of the approved delivery methods.Before delivering securities to OUF: Prepare a list in MS Excel format describing the securities that you intend to report, including:o Security descriptiono CUSIP number and ISIN (for foreign securities)o Number of shareso Delivering party’s Depository Trust Company (DTC) participant numbero Preferred delivery methodEmail your list to OUF’s custodian, Avenu Insights and Analytics at upch.custody@avenuinsights.com andemail a copy to OUF at nysrpu@osc.ny.gov.Receive our delivery authorization within four business days of receiving your email. We will tell you to eitherdeliver as requested or provide alternate instructions. Do not deliver securities without authorization.After delivering the securities retain evidence of the transfer into OUF’s custody, to be provided to OUF upon request.Keep the evidence of transfer with the report records for the duration of the record retention period. An owner claimmay not be paid until you provide this evidence.Approved Delivery MethodsBook Entry Eligible SharesFederal Reserve SecuritiesDeliver through DTC, DRS, or DWAC (if not DTCparticipant) as follows:Deliver Federal Reserve securities to:DTC #:901Reference:State of New York, OUFAgent Bank:26500Acct #:114429Dividend Reinvestment Plans (DRP) & Closed-EndFundsClose the accounts and forward whole shares viaDTC (see Book Entry instructions above). Fractionalshares must be sold at the owner level and theproceeds applied to each individual owner.Federal Reserve Bank of New YorkABA #0210-0001-8Bk of NYC/CUSTAccount # 114429Account Name: State of New York, OUFForeign SecuritiesEmail your list of foreign securities that need to bedelivered to OUF’s custodian, Avenu Insights andAnalytics at upch.custody@avenuinsights.com andcopy OUF at nysrpu@osc.ny.gov.We will reply to your email with an authorization todeliver as requested or provide alternate instructions.
Open-End Mutual FundsPhysical CertificatesOpen-end mutual fund accounts held for OUF mustbe opened in advance by Avenu Insights andAnalytics. Email upch.custody@avenuinsights.com toobtain account numbers prior to attempting delivery.Advance approval is required to deliver physicalcertificates. Certificates will be returned to the senderif they are DTC, DWAC, or DRS eligible. If physicalcertificates are returned, penalties may be assesseduntil the securities are properly delivered.Send interested party statements for open-end mutualfund accounts to:Avenu Insights and AnalyticsCustody Department100 Hancock Street, 10th FloorQuincy, MA 02171A confirmation statement showing the State of NewYork, OUF as the owner of the shares must beavailable to OUF on request when needed to provereceipt or pay a claim. See the Handbook forReporting Organizations for more guidelines.Email your list of securities that need to be deliveredin certificate form to OUF’s custodian, Avenu Insightsand Analytics at upch.custody@avenuinsights.comand copy OUF at nysrpu@osc.ny.gov.We will reply to your email with an authorization todeliver as requested or provide alternate instructions.Account RegistrationAdvance approval is required to deliver securities toan account. If securities are not delivered asinstructed, penalties may be assessed until thesecurities are properly delivered.Email your list of securities that need to be deliveredto an account to OUF at nyssmu@osc.ny.gov. We willreply to your email with an authorization to deliver asrequested or provide alternate instructions.A confirmation statement showing the State of NewYork, OUF as the owner of the shares mustaccompany your Abandoned Property Report for yourreport to be complete.
Report Samples – Brokers and DealersSecurity Account (DTC Delivery)This sample reflects how to report a security with fractional shares that could not be delivered and have beenliquidated. Note that the CUSIP Number of Security, No. of Shares or Denomination, and Method of Transfer fieldsare all complete. Initial and escheated dollar values are left blank.Per the Security Delivery Instructions, fractional shares must be liquidated at the owner level and proceeds applied toeach individual owner. So, for example, when there are 98.765 shares, deliver the 98 shares, then liquidate the0.765 and deliver the cash value separately.Owner Last NameFirst NameMIJonesMaryMSuffixProperty TypeProperty ID NumberDate (MMDDYY)3Q98765060614Initial AmountAccount TitleMary M JonesSoc. Sec. No./ Empl ID No.987654321Owner Address123 Jane LaneOwner Address 2Escheated AmountRemoval Indicator (Ifapplicable, enter "P" or "R")Multiple OwnersDescription of SecurityVery Big Company& Fractional CashIn-Lieu (CIL)Owner CityLawndaleCUSIP Number of Security999888777StateMDNo. of Shares or Denomination98.765Zip65432Method of TransferDCountry if Not USASecurity Account (DRS Deliver)This sample reflects the DRS delivery reporting of a security position. Note that the CUSIP Number of Security, No. ofShares or Denomination, and Method of Transfer fields are all complete.Owner Last NameFirst NameMIJonesMaryMSuffixAccount TitleSoc. Sec. No./ Empl ID No.Owner AddressStateZipCountry if Not USAProperty ID NumberDate (MMDDYY)3QZQ1141061514Initial AmountMary M Jones987654321123 Jane LaneOwner Address 2Owner CityProperty TypeEscheated AmountRemoval Indicator (Ifapplicable, enter "P" or "R")Multiple OwnersDescription of SecurityLawndaleMD65432CUSIP Number of SecurityNo. of Shares or DenominationMethod of TransferIBM Common7236221071000D
If the broker or dealer is incorporated in New York State, overpayment amounts and securities held for unknown owners are also subject to the statute. There are specific record retention requirements for brokers and dealers. Statutory Considerations in Addition to Article V-A - Brokers and Dealers .
