Account Registration Changes and Internal Transfers

What this video covers

• Why a registered representative cannot unilaterally initiate an account name or designation change, and what principal approval requires
• How the customer account records rule mandates that a registered principal be personally informed of the essential facts prior to approving in writing
• When essential facts must be documented prior to execution, and why electronic approval satisfies the writing requirement
• Why moving assets from a taxable account to a Roth Individual Retirement Account (IRA) is classified as a contribution with annual IRS limits, not a simple transfer
• What written authorization both parties must provide when an internal transfer crosses different ownership, and the gift-tax reporting implications
• The two acceptable formats of customer authorization under the negotiable-instrument authorization rule: signature on the instrument itself, or a separate authorization form
• Why the three-year record retention clock for separate check authorizations starts after expiration, not at signing or first draft, and why signed instruments themselves need not be preserved