The Automated Customer Account Transfer Service (ACATS) facilitates the transfer of various financial assets between brokerage firms.
Understanding ACATS Eligibility
ACATS is designed to streamline the process of moving investment accounts from one financial institution to another, making it a common method for investors looking to consolidate accounts or switch brokers. Many different types of assets are eligible for transfer through ACATS, ensuring a smooth transition for a wide range of investment portfolios.
Eligible Assets for ACATS Transfers
The following asset types are typically eligible for transfer via ACATS:
- Stocks: Shares of publicly traded companies.
- Bonds: Debt securities, including corporate, municipal, and government bonds.
- Mutual Funds: Professionally managed investment funds that pool money from many investors to purchase securities.
- Over-the-Counter (OTC) Securities: Securities traded directly between two parties without the supervision of an exchange.
- Options: Financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.
While ACATS covers a broad spectrum of assets, it's important to note that some specific securities may not be eligible for transfer through this service. Investors should always confirm with their current and new brokerage firms regarding the transferability of all assets within their account. For more information on ACATS, you can refer to resources like Investopedia's explanation of ACATS.