Exercise
Answer the Following Questions
1. When a customer transfers an account from one firm to another, the carrying firm has how much time to validate or take exception to the receiving firm’s transfer request?
A. One business day
B. Three business days
C. Five business days
D. Ten days
2. Karen is unhappy with Big Broker Investments and is being wooed by Jumbo Broker Investments, which has offered her a nice mug and discounted commissions if she transfers her portfolio. The transfer request would most likely be entered into which system?
A. ACT system
B. ACATS
C. SHORT system
D. CRD
3. A registered rep has left your firm to work for another broker-dealer. One of his customers requests a transfer of her funds to the rep’s new firm. If you were the customer’s manager:
A. You could refuse the transfer because the account belongs to your broker-dealer.
B. You could refuse the transfer as the former registered rep is engaged in “raiding.”
C. You must permit the transfer.
D. You may bring an injunction in FINRA arbitration against the transfer.
4. Will wants to transfer his account from Company A to Company B. He first writes up instructions to Company B and fills out a TIF. Company B then submits the transfer request to Company A through ACATS. On the third business day after receiving the request, Company A validates and completes the transfer. Unfortunately, the transfer does not carry through correctly. What went wrong?
A. Company B did not wait three business days before submitting the transfer request.
B. Company B did not