Customer Account Transfers (ACATS)
Chapters in this video
- 0:00 ACATS basics: the TIF trigger and NSCC system
- 1:07 The 1-day validation and 3-day completion clock
- 2:05 Enumerated exceptions and invalid blocking tactics
- 3:51 MSRB harmonization and the 6-month residual rule
- 5:07 How Series 6 products transfer: funds, 529s, and variable annuities
- 6:37 Broker-dealer change of record vs. tax-free annuity exchange
- 7:29 Rapid-fire exam recap
What this video covers
- The 1-day validation and 3-day completion ACATS timeline, and why the total is 4 business days end-to-end under standard conditions
- Why the receiving firm initiates the Transfer Instruction Form (TIF) but the carrying firm controls the regulatory clock
- The three enumerated exceptions a carrying firm can use to block validation, and why position or money-balance discrepancies are not on that list
- How informal foot-dragging by a losing rep violates both the customer-account transfer rule and the fair-dealing rule when the TIF is valid on its face
- The minimum 6-month residual-position rule for late-arriving dividends, fractional shares, and interest credits after the main transfer completes
- How mutual funds, 529 plans, ABLE accounts, and variable annuities each transfer mechanically, and why a broker-dealer change of record is not an ACATS transfer
- Why a tax-free annuity exchange under Internal Revenue Code provisions is a surrender-and-reissue, not an ACATS transfer, and why forced liquidation of non-transferable assets violates the rule
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