FINRA Rule 11870

Requires brokerage firms to facilitate customer account transfers in a timely, coordinated, and efficient manner, helping ensure that customers can move their accounts between firms without unnecessary delay.

Rule Overview

Jurisdiction: United States

Regulator: FINRA

Topic: Consumer Protection

FINRA Rule 11870

Overview

Further Reading

Requirements:

Firms must promptly process and coordinate customer requests to transfer securities accounts to another brokerage firm.
Both the firm holding the account and the receiving firm are responsible for helping ensure that account transfers are completed efficiently.
Firms must follow standardized transfer procedures, including the use of the Automated Customer Account Transfer Service (ACATS), an industry system used to facilitate transfers between brokerage firms when applicable.
Firms must promptly review, validate, and resolve issues related to transfer instructions to avoid unnecessary delays.
Customers may transfer all or part of their accounts, and firms must process authorized transfers whether they occur through ACATS or another permitted transfer method.
Firms must accept valid customer authorizations, including eligible electronic signatures.