Series 10 Exam Question 23: Answer and Explanation

Question: 23

All of the following are true relating to the ACAT process, EXCEPT:

• A. The customer must be informed in writing that certain positions may not be able to be transferred.
• B. The instructions must be validated in one day.
• C. The account must be transferred within three days of validation.
• D. The receiving firm need not send a position report to the new firm.

Correct Answer: D

Explanation:

A firm receiving ACAT instructions must send a report of the positions to be transferred to the new firm upon validation.