Series 24: Account Transfers

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. 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. 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. 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