Currently the securities industry does not have a common architecture to promptly facilitate bulk transfers, which can be defined as a single movement of many customer brokerage accounts. A common architecture and standardized files could help facilitate the exchange of information and related processing to transfer customer brokerage accounts in bulk and reduce some of the risks of a carrying broker-dealer1 liquidating its business in a compressed time frame. The Depository Trust & Clearing Corporation ("DTCC") has been working with a group of industry participants to develop procedures to standardize, facilitate and expedite the account transfer process. The industry has been considering the problem of expediting the bulk transfer of customer accounts for some time, but these concerns have been heightened by recent events, including recent broker failures. Customers face various risks if they are not able to transfer their accounts from a firm in distress that is liquidating its business, including uncertainty of access to their investments. Any delays or obstacles to the transfer of accounts could also impair resolution of the broker-dealer under liquidation or bankruptcy proceedings, if applicable.
Click here to read the Bulk Customer Account Transfer Initiative
Click to download – Industry Call (recorded September 21, 2015)
Click to download Bulk Transfer and AIT