Transfer Agent Definition & Functions

What is a Transfer Agent

The transfer agent is a company responsible for maintaining the back office operations for a mutual fund.  At times a mutual fund will elect to have their custodian bank provide this service, but there are companies that specialize in the functions of the transfer agent.

Functions of the Transfer Agent

Unlike the custodian bank which is responsible for overseeing the fund's operation, the transfer agent has a much more limited scope.  Its easiest to think of the transfer agent as almost the communications manager for the mutual fund.  The transfer agent is responsible for the following:

• Provide quarterly statements to investors
• Send annual tax documents to investors
• Maintain detailed records of account holders
• Send interest payments and dividends to investors
• Issue new shares when a stock splits its shares
• Runs the customer service department for the fund
• Investigate lost or stolen stock and bond certificates