License Transfer - what can you do?

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Apr 24, 2009 9:56 pm

Can someone say for sure what a rep can and cannot do prior to license transfer when making a move to a new broker dealer?

If you are making a move, you resign then it takes, say, a day, or even 3-4 hours to get the license transferred, due to a manual review by a state, during that time, can you call clients without soliciting? Can you call and meet with them to sign paperwork and have it transferred to the b/d under as a house account, pending approval? Or can you call, meet, get signed acats and process them but not solicit trades?

Apr 24, 2009 10:09 pm

As far as I know, you can't do anything until your license clears with the new broker dealer.  On average, I would say it only takes a few hours to be activated by the new broker dealer.  Unless your U4 is dinged, then it could take a week or so.

We had those same worries when we jumped ship, and I'll tell you, you're worrying for nothing.  It's the relationship that counts - period.  Any other advisor that might jump on your book will not have the relationship you've built with your clients.  It's a simple matter, either you have strong relationships and they will come with you, or you don't and they won't.

Apr 27, 2009 9:56 pm

Thanks for the response Bill. I guess my question is, aside from firm policy, i'm curious to know what activities are permitted prior to getting the official all clear, according to FINRA regulations.

May 6, 2009 3:26 pm

Bill:

Is the transfer rules also true for 65?  So for their RIA business, which most states require a 65 how much does FINRA get involved?

ash