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Tape-to-Tape Transfers

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Oct 22, 2009 5:44 pm

FVDA_Trade-PMR

Joined: 2008-09-24Offline

Has any Independent B/D Rep or Independent RIA been able to use a Tape-To-Tape transfer for their client accounts (as opposed to individual ACAT transfers) when switching B-D/clearing/custodian firms?

Most if not all of the Independent B/D reps leaving one firm to go to another B/D firm, for example, the current B/D doesn't have an issue with the Advisors taking their book with them but wondering if anyone has any experience in the losing B/D firm agreeing with the Rep to agree to do a tape-to-tape transfer which can be a huge time-saver when transferring client accounts.   Thanks for your input on this subject!    
Nov 2, 2009 2:11 am

cobia

Joined: 2009-10-16Offline

If the book is big enough the receiving BD pays a negotiated fee to the losing clearing firm.  Typically 50k plus.  The BD typically still should have new NA forms with the standard disclosures and arb agreement.  Clients still need to be notified.  Not as simple as you would think but eliminates a lot of paperwork.  Each clearing firm is different and they dont have to do it.