Account Transfers Between Broker-Dealers

What this video covers

• The ACATS transfer timeline and the 1-3 rule (1 business day to validate, 3 business days to complete) and how to hit the approximately 4-day total for a standard transfer
• Where the customer initiates the transfer and why the receiving firm drives the process, not the carrying firm
• The no-cherry-picking rule and why the receiving firm must accept or reject the entire account, not individual positions
• Valid exceptions the carrying firm can raise and what happens when assets fail to deliver (10 business days standard, 30 business days for municipals and mutual funds)
• The difference between ACATS (account-level moves under FINRA) and transfer agents (individual security ownership changes under the SEC)
• Educational communication requirements when a registered representative switches firms, including the 3-month window and the institutional-account exemption
• Nontransferable asset handling and why written disposition instructions are required before the 5-business-day liquidation clock starts