Physical Receipt, Delivery, and Safeguarding of Customer Assets

What this video covers

• What "promptly transmit" means in hard deadlines: noon of the next business day after physical receipt
• The four mandatory control points in written supervisory procedures (WSPs) for handling customer funds: logging, custody, restrictive endorsement, and prompt forwarding
• How subscription-way business works for mutual fund and variable contract sales, and why checks are payable to the issuer, never to the broker-dealer or rep personally
• Why subscription-way relief still requires maintaining a copy of the check and logging both receipt and transmission dates
• The three verification requirements when delivering securities or funds to customers: identity, address, and delivery instructions
• Why wire transfers and automated clearing house (ACH) to third parties are red flags for senior financial exploitation
• What Sam the supervisor must do when a check is held past the noon deadline: document, escalate, and preserve the explanation and remedial steps in official records