Customer AccountsQuestion 91 of 110
When a customer submits a transfer instruction to move an account from one broker-dealer to another through the automated transfer system, the carrying firm must:
a.Validate or take exception to the instruction within one business day and complete the transfer within three business days of validation
b.Complete the transfer within 30 calendar days
c.Obtain approval from FINRA before releasing the assets
d.Liquidate all positions and transfer cash only
Explanation
The automated customer account transfer process runs on a tight schedule: validation within one business day, then completion within three business days. Assets transfer in kind whenever the receiving firm can hold them, so wholesale liquidation is incorrect. FINRA sets the timeframes but does not approve individual transfers.
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