Series 51: Transfer Execution

Transfer Execution

Within four business days following the validation of a transfer instruction, the carrying party must complete the transfer of the account to the receiving party.

If the customer’s account includes any nontransferable assets, the carrying party must request further instructions from the customer as to how to dispose of the assets. The customer must decide between (1) liquidating the assets, (2) retaining them with the carrying party, or (3) transferring them to another dealer. A nontransferable asset is an issue in default or a municipal fund security that may only be held by specified dealers, and the receiving party isn’t one of them.

If positions in the customer’s accounts, such as assets in transfer, cannot be physically delivered or received by the transfer date, fail-to-receive or fail-to-deliver contracts must be drawn up by the two parties at the securities’