Account Transfers
When a client wishes to transfer an account from one firm to another, there is a specific process that must be followed.
- 1. The client must complete a transfer request (Transfer Initiation Form– TIF) and send it to the new firm, referred to as the receiving firm.
- 2. 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 System (ACATS).
- 3. The carrying firm must then either validate or take exception to the transfer within one business day.
A carrying firm may take exception for several reasons, listed below:
- ◊ 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 assets);
- ◊ There is a mismatch of social security or