Custodian dragging their feet with transfer

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mikejomike
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Custodian dragging their feet with transfer

Post by mikejomike » Fri Oct 06, 2017 8:49 am

I’m trying to transfer an investment account full of standard mutual funds to Schwab. The current custodian is dragging their feet, now at 45 days since transfer initiation. They are now ignoring Schwab’s requests for updates/info. I’m now trying to get info from them, but what else can be done in this situation?

dbr
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Re: Custodian dragging their feet with transfer

Post by dbr » Fri Oct 06, 2017 8:56 am

A technique in general is to start by writing a polite and clear letter to the level above where you think the problem is and ask for a specific action to be taken. After that you escalate to the next level. If this is a local branch of a broker, that would be the branch manager, etc.

Someone else can comment on means to go to the authorities with a complaint.

barnaclebob
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Re: Custodian dragging their feet with transfer

Post by barnaclebob » Fri Oct 06, 2017 8:57 am

Start looking into the rules they have to follow and who you can report them to for not following those rules. Don't report them or anything yet, just gain some knowledge.

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in_reality
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Re: Custodian dragging their feet with transfer

Post by in_reality » Fri Oct 06, 2017 9:09 am

mikejomike wrote:
Fri Oct 06, 2017 8:49 am
I’m trying to transfer an investment account full of standard mutual funds to Schwab. The current custodian is dragging their feet, now at 45 days since transfer initiation. They are now ignoring Schwab’s requests for updates/info. I’m now trying to get info from them, but what else can be done in this situation?
If the current custodian could not immediately satisfy my inquiry about what needs to happen for the transfer to take place, I would file a complaint with finra. In fact, I would tell the custodian that.

My thinking is that for all I know the assets are missing. I mean they can't transfer something they don't have, right.

http://www.finra.org/investors/file-complaint
http://www.finra.org/investors/investor ... int-center

Anyway, finra handles complaints involved in transfers.
Problems with Account Transfer: At times, investors transfer their securities accounts between brokerage firms. While the process generally runs smoothly for the vast majority of the thousands of accounts transferred each year, there are times when delays occur and investors have problems. For more information, please read Understanding the Brokerage Account Transfer Process.
The section they recommend you to read is here: http://www.finra.org/investors/understa ... er-process
Last edited by in_reality on Fri Oct 06, 2017 9:18 am, edited 1 time in total.
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indexfundfan
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Re: Custodian dragging their feet with transfer

Post by indexfundfan » Fri Oct 06, 2017 9:14 am

Yes, file a complaint with FINRA. The custodian would have to respond. Years ago, I have trouble with TradeKing and filed a complaint with FINRA. TradeKing provided a resolution after the complaint.
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mikejomike
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Re: Custodian dragging their feet with transfer

Post by mikejomike » Fri Oct 06, 2017 9:30 am

Thanks! I’ll check into FINRA. I did not know who regulates the transfers

alex_686
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Re: Custodian dragging their feet with transfer

Post by alex_686 » Fri Oct 06, 2017 9:40 am

I am going to assume that your old broker is operating on good faith. I am assuming that this is a ACATS transfer. I am assuming that the issue is technical.

With that, I would start at Schwab. If this is a technical issue that it is a back office issue - salaried employees who are paid to get the job done. Schwab's back office probably has better contacts with your old broker's back office than your current rep or branch manager. They will know what the technical issue is. And they will know if you need to step up and put pressure on somebody.

mikejomike
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Re: Custodian dragging their feet with transfer

Post by mikejomike » Fri Oct 06, 2017 9:44 am

Schwab called me and asked me to get involved, as the current custodian stopped communicating. I have an email to the former advisor, who is out of the office until Tuesday. They may be delaying to get another month of fees. If this is resolved soon, and they delayed just enough for another few, would this be a valid FINRA complaint?

student
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Re: Custodian dragging their feet with transfer

Post by student » Fri Oct 06, 2017 9:52 am

mikejomike wrote:
Fri Oct 06, 2017 9:44 am
Schwab called me and asked me to get involved, as the current custodian stopped communicating. I have an email to the former advisor, who is out of the office until Tuesday. They may be delaying to get another month of fees. If this is resolved soon, and they delayed just enough for another few, would this be a valid FINRA complaint?
Since you are not happy with them and the fact that Schwab has to get you involved, I would say that your current custodian is either incompetent or purposely delaying the transfer. I think this is a valid FINRA complaint.

alex_686
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Re: Custodian dragging their feet with transfer

Post by alex_686 » Fri Oct 06, 2017 10:15 am

mikejomike wrote:
Fri Oct 06, 2017 9:44 am
I have an email to the former advisor, who is out of the office until Tuesday.
There should be a "broker of the day" who covers when a rep is out of the office. The branch manager would be another option. Phone these people and ask what is going on. At the very least get dates on when they will get back to you. Then recount your conversation and e-mail everybody, thus creating a paper trail.

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BolderBoy
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Re: Custodian dragging their feet with transfer

Post by BolderBoy » Fri Oct 06, 2017 6:46 pm

They're inviting a FINRA complaint. Don't disappoint them.
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