Series 24: 3.4.2. Account Transfers

3.4.2.  Account Transfers

When a client wishes to transfer an account from one firm to another, there is a specific process that must be followed.

The client must complete a transfer request (Transfer Initiation Form (TIF)) and send the form to the new receiving firm. The receiving firm must immediately send the TIF to the carrying firm (also called the delivering firm) through the NSCC’s Automated Customer Account Transfer Service (ACATS). The carrying firm must then either validate or take exception to the transfer within one business day.

A carrying firm may take exception for the following reasons:

• The account reflects no transferable assets.

• The transfer would violate a firm’s credit policy.

• There are unrecognized residual credit assets (the receiving firm cannot identify the client as the record owner of one or more credit ass