License Transfer - what can you do?
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?
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.
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.
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?