Series 28: Validation Of Transfer Instructions

Validation of Transfer Instructions

If the carrying firm validates the transfer request, it will send a list of the assets in the account to the receiving firm via ACATS. The carrying firm will also freeze the client’s account, cancelling all open orders (except options that will expire within seven days) and refusing new orders.

The receiving firm will review the list of assets to decide whether it wishes to accept the transfer. If it accepts the transfer, the delivering firm has three additional business days to complete the transfer of assets.

The carrying firm is not required to accept the transfer of an account. Some of the more common reasons to take exception are:

• • The account contains no transferable assets
• • The trans