The other side of this is that I’ve absolutely had a SEC advisor tell me that I couldn’t access my money unless I kept my account with him and the bank had to verify my access to the money if I wanted to transfer it, but if I stayed I could keep it. ACATS ultimately protects the consumer from keeping their money with unscrupulous advisors.
I agree with the author that it is totally terrifying, but I feel the assets should be kept with a third party or third party verification service so that the broker isn’t incentivices to “verity” details.
I think medallions are a good solution to this problem and like the author of the piece says they are shockingly easy to get. I think that the advisors themselves receiving the money generally have huge relationships with the companies they work with that issue medallions and even the third party companies with relationships with the receiving advisor will generally provide one for free even if the person doesn’t have one.
I agree with the author that it is totally terrifying, but I feel the assets should be kept with a third party or third party verification service so that the broker isn’t incentivices to “verity” details.
I think medallions are a good solution to this problem and like the author of the piece says they are shockingly easy to get. I think that the advisors themselves receiving the money generally have huge relationships with the companies they work with that issue medallions and even the third party companies with relationships with the receiving advisor will generally provide one for free even if the person doesn’t have one.