how the automated customer account transfer service acats works
the acats system is initiated when the new receiving firm has the client sign the appropriate transfer documents once the document is received in good order the receiving firm submits a request using the client s account number and sends it to the delivering firm if the information matches between both the delivering firm and the receiving firm the acats process can begin the process takes usually takes three to six business days to complete 2the acats simplifies the process of moving assets from one brokerage firm to another the delivering firm transfers the exact holdings to the receiving firm for example if the client had 100 shares of stock xyz at the delivering firm then the receiving firm receives the same amount with the same purchase price this makes it more convenient for clients as they do not need to liquidate their positions and then repurchase them with the new firm another benefit is that clients do not need to let their previous brokerage firm or advisor know beforehand if they are unhappy with their current broker they can simply go to a new one and start the transfer process 3securities eligible for acatsclients can transfer all publicly traded stocks exchange traded funds etfs cash bonds and most mutual funds through the acats system acats can also transfer certificates of deposit cds from banking institutions through the acats system as long as it is a member of the nscc acats also works on all types of accounts such as taxable accounts individual retirement accounts iras trusts and brokerage 401 k s 1transfers involving qualified retirement accounts like iras may take longer as both the sending and receiving firm must validate the tax status of the account to avoid errors that could cause a taxable event securities ineligible for acatsthere are several types of securities that cannot go through the acats system annuities cannot transfer through the system as those funds are held with an insurance company to transfer the agent of record on an annuity the client must fill out the correct form to make the change and initiate the process via what is known as a 1035 exchange 4other ineligible securities depend on the regulations of the receiving brokerage firm or bank many institutions have proprietary investments such as non transferrable mutual funds and alternative investments that may need to be liquidated and which may not be available for repurchase through the new broker also some firms may not transfer unlisted shares or financial products that trade over the counter otc 