Who uses a transfer agent?
Many publicly traded firms, mutual funds, and private capital funds use a transfer agent to keep track of who owns their assets if they have a large number of investors. On behalf of the company, the transfer agent will enter new investment information into a transfer agent system, manage the investor database and keep investor profiles up to date. The transfer agent can then handle various back-office duties for the company. These duties may include paying distributions to investors, managing proxy votes and communicating with investors on behalf of the fund. These duties are simplified by the transfer agent system’s access to all investor information. A transfer agent may also process capital calls, pay sales commissions to financial advisors, produce K-1 or 1099 tax forms and provide online account access to investors in the name of the investment fund through an investor portal that draws data from the transfer agent system.
