Series 7 Exam Question 157: Answer and Explanation

Question: 157

According to FINRA rules, which TWO of the following are TRUE about ACATs?

I. When ACAT notices are received, firms have 1 business day to verify the customer's instructions

II. When ACAT notices are received, firms have 3 business days to verify the customer's instructions

III. Assets must be transferred within 3 business days after verification

IV. Assets must be transferred within 4 business days after verification

• A. I and III
• B. I and IV
• C. II and III
• D. II and IV

Correct Answer: A

Explanation:

A. ACATs are account transfers from one brokerage firm to another. When a firm receives an ACAT notice, the firm must verify the customer's instructions within one business day and must transfer assets within three business days after verification.