Even my casual reading as a non-lawyer of the paragraph I bolded fails the sniff test.NSCC Rule 50 (Automated Customer Account Transfer Service) has an indemnification clause that states: "Each Member... that requests a transfer through ACATS (the Requesting Firm) agrees to indemnify and hold harmless the Member... that accepts such transfer request (the Transferring Firm) ... from and against any and all losses... insofar as such losses... arise out of or are based upon an unauthorized or allegedly unauthorized transfer request."
So whether or not FINRA punishes a firm for having poor identity verification or not, NSCC will require the receiving firm to indemnify the firm that transferred the money which means you are protected.
Statistics: Posted by EricGold — Sun Dec 07, 2025 3:13 am — Replies 165 — Views 34382