Automated Customer Account Transfer Service (ACATS)
Candlefocus EditorThe ACATS system is designed to facilitate the transfer of stocks, bonds, cash, unit trusts, mutual funds, options, and other investment products between member firms and their customers. All participants must be members of, or have a relationship with, the NSCC or the Depository Trust Company (DTC). The system can be used to move any asset included in an individual’s account, including funds, stocks and bonds. Once the account information is properly matched, the receiving firm decides whether or not to accept the account and the delivery process can begin.
The delivery process can take approximately three days and the delivering firm is responsible for processing the transfer of the assets in their entirety. During the delivery process, the delivering firm will verify current account information, verify trade history, and then participate in the official transfer process. The receiving and delivering firms will also be responsible for communicating with customers, answering questions, and finalizing paperwork and transfers.
When transferring customer accounts using the ACATS system, some brokerages may charge additional fees, such as an ACAT fee for each account transfer. That fee is typically paid for the administrative tasks required to properly transfer the account.
The ACATS system is an important tool for customers who wish to switch brokerage companies. The automated system provides security and reliability while helping to ensure a smooth transition of customer accounts.