Closing or Transferring Customer Accounts

Question 1

What happens once a customer completes a transfer form?

Answer 1

• The new firm must submit instructions to the old account IMMEDIATELY
• OPEN orders are cancelled

Question 2

How long does the old firm have to verify positions and validate them?

Answer 2

1 business day upon receipt of transfer form

Question 3

How many business days are given to old firm to transfer securities to the new firm?

Answer 3

3 business days

Question 4

What are “fails to receive”

Answer 4

Stocks loaned out on short sales - these accounts must be bought and delivered within TEN (10) business days

Question 5

What are some reasons for delaying an account transfer?

Answer 5

If a customer has a proprietary in house mutual fund position that isn’t sold by other broker dealers, or there are positions in retirement accounts that can only be moved between trustees for tax purposes

Question 6

What do you do to an account in the event of a death of the customer?

Answer 6

• Cancel open orders and freeze the account from removal of assets
• Note “deceased” on account forms
• AWAIT to hear from executor of estate

Question 7

What do you do in the event of death in an individual or Joint tenants in common account?

Answer 7

• Need a copy of the death certificate
• We don’t know who beneficiary is, so we need a copy of the will
• No trading can occur before account transfer w/o a court order or executor of estate authorization

Question 8

What happens in a JTWROS or TOD customer account?

Answer 8

The only paperwork needed is the copy of death certificate

Question 9

What happens in the death of a partner?

Answer 9

No orders can be accepted until the partnership agreement is ammended

Question 10

What are the retention of records rules?

Answer 10

New account forms must be retained for as long as customer is at the firm and then 6 years after the account is closed