Account Transfers
Chapters in this video
- 0:00 ACATS and the transfer drama cast of characters
- 1:18 The receiving firm starts, the carrying firm executes
- 2:34 The 1-day validate and 3-day deliver timeline trap
- 3:32 What does not fit through the ACATS highway
- 4:08 Valid exceptions versus improper interference
- 5:27 Bona fide lien versus credit balance: the direction of money matters
- 6:13 Suing the rep does not let you hold the customer's money hostage
- 7:07 The ultimate trap: perfect timing plus pretextual exception
- 7:46 Rapid-fire exam recap
What this video covers
- The ACATS workflow: who submits the Transfer Instruction Form (TIF), who validates it, and who executes the transfer
- The 1-business-day validation window and the 3-business-day delivery window, and why total elapsed time is 4 business days, not 3
- Which assets travel through ACATS (equities, most bonds, options, cash) and which do not (annuities, nontransferable limited partnerships)
- The difference between a legitimate exception (name mismatch, lien, account restriction) and improper interference (delay tactics, bad-faith demands, disparaging the new firm)
- Why a bona fide lien must be money the customer owes the firm, and why a credit balance where the firm owes the customer is never a valid delay
- Whether a firm can block a customer transfer to pursue claims against a departing representative (non-compete, breach of contract): it cannot
- Why perfect ACATS timing plus a pretextual exception still violates the transfer-interference prohibition
Read the full lesson, free
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