FINRA Warns Firms Regarding Fraudulent Account Transfers

Posted on April 5th, 2023 at 1:54 PM
FINRA Warns Firms Regarding Fraudulent Account Transfers

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) is warning financial advisory firms about a recent increase in fraudulent transfers of client accounts via the Automated Customer Account Transfer Service (ACATS).

FINRA released Regulatory Notice 23-06, which serves as a follow-up to Regulatory Notice 22-21, which noted potential indicators of ACATS fraud and shared effective practices for minimizing the risk of fraud. Notice 22-21 provided guidance on how third parties could initiate fraudulent transfers of client assets on ACATS as well as contact information for reporting potential fraud.

FINRA noted that its regulatory programs, including its examinations and investigations, have uncovered increased instances of ACATS fraud. Regulatory Notice 23-06 outlines a host of indicators of ACATS fraud as well as practices for mitigating the fraud.

 

Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

October 23, 2025
Retail Access to Private Markets Raises Investor Protection and Regulatory Concerns

Robinhood Markets recently registered its first alternative investment vehicle, Robinhood Ventures Fund I, with the Securities and Exchange Commission (SEC).

October 21, 2025
Judge Denies Merrill Lynch's TRO in Advisor Transition

A federal judge has rejected Merrill Lynch’s request for a temporary restraining order (TRO) against a group of former financial advisors who left the firm to launch their own independent practice, OpenArc Corporate Advisory, under Dynasty Financial Partners’ platform with custody at Charles Schwab.

October 20, 2025
FINRA Accuses Former MML Broker of Cheating on SIE Exam

Regulators have accused a former MML Investors Services-affiliated broker of cheating on the Securities Industry Essentials (SIE) exam, according to a recent Financial Industry Regulatory Authority (FINRA) enforcement complaint.