Series 26: Exercise

Exercise

1. 1. When a customer transfers an account from one firm to another, the carrying firm has how much time to validate or take exception to the receiving firm’s transfer request?
2. A. One business day
3. B. Three business days
4. C. Five business days
5. D. Ten days
6. 2. Karen is unhappy with Big Broker Investments and is being wooed by Jumbo Broker Investments. Jumbo Broker Investments has offered her a nice mug and discounted commissions if she transfers her portfolio. What system would most likely be used to initiate the transfer?
7. A. ACT system
8. B. ACATS
9. C. SHORT system
10. D. CRD
11. 3. A registered rep has left your firm to work for another broker-dealer. Some of his customers request a transfer of their accounts to the new broker-dealer. If you were the customer’s manager:
12. A. You may refuse the transfer as the accounts belong to your broker-dealer.
13. B. You may refuse the transfer as the former registered rep is engaged in “raiding.”
14. C. You must permit the transfers.
15. D. You may bring an injunction in FINRA arbitration against the transfers.
16. 4. Will wants to transfer his account from Company A to Company B. He first writes up instructions to Company B and fills out a TIF. Company B submits the transfer request to Company A through ACATS upon receipt from Will. On the third business day after receiving the request, Company A validates and completes the transfer. Unfortunately, the transfer does not carry through correctly. What went wrong?
17. A. Company B must wait three business days before submitting the transfer request.
18. B. Company B must validate a transfer request upon receipt.
19. C. Will must include a document showing permission from Company A along with his