Account Transfers Between Broker-Dealers
Chapters in this video
- 0:00 The ACATS escape mission: system and players
- 1:27 Who initiates the transfer and where
- 1:57 The 1-then-3 validation and completion timeline
- 2:52 All-or-nothing: no cherry-picking accounts
- 3:25 Nontransferable assets and written disposition instructions
- 4:10 Fail-to-receive: 10-day and 30-day windows
- 4:37 ACATS vs transfer agents: FINRA and SEC split
- 5:06 Recruiting-firm educational-communication rules
- 6:36 Rapid-fire exam recap
What this video covers
- How the ACATS transfer timeline works: 1 business day to validate, 3 business days to complete, and who initiates the process at which firm
- Why the receiving firm must accept or reject the entire account, and why partial rejections are prohibited
- What valid exceptions the carrying firm can raise to delay transfer, and what happens when validation is missed
- How nontransferable assets are handled: the 5-business-day disposition deadline after written customer instructions
- The fail-to-receive contract windows: 10 business days for most securities, then 30 business days for municipal securities and mutual funds
- The regulatory split between ACATS (FINRA framework) and transfer agents (Securities Exchange Act, SEC-regulated), and what each actually does
- When the recruiting firm must deliver educational communications, what they must contain, and which customers are exempt
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