Account Closure Procedures

What this video covers

• How a customer voluntarily closes an account: written instructions, liquidation or transfer, prompt remittance of free credit balance, and the ACATS timeline
• Why ACATS transfers take exactly 3 business days (not calendar days), and which assets are ineligible
• When a firm can fire a customer: minimum violations, excessive risk, repeated regulatory issues, and CIP/AML verification failures
• The 6-year record retention requirement for closed accounts, and why reasonable notice matters for firm-initiated closures
• Why margin balances must settle before closure: debit balances, short covering, and the final zero-balance statement
• The exact death protocol sequence: cancel open orders first, then freeze, then wait for the certified death certificate and letters testamentary
• How joint tenants with rights of survivorship (JTWROS) bypass probate automatically, while tenants in common (TIC) pass through the estate
• Why escheatment is state law (not federal), the 3-5 year dormancy window, and how dividends or interest reset the dormancy clock