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

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

October 17, 2025
FINRA Fines Oak Hills Securities for Private Placement Misconduct

The Financial Industry Regulatory Authority (FINRA) has censured and fined Oak Hills Securities Inc., an Oklahoma City brokerage, for multiple rule violations over five years.

October 16, 2025
FINRA Suspends Former Citigroup Advisor Over Undisclosed Business Activities

The Financial Industry Regulatory Authority (FINRA) has suspended former Citigroup representative Maximiliano Ramirez and fined him $5,000 for engaging in undisclosed outside business activities and investments.

October 15, 2025
SEC Accuses Florida Insurance Agent of $52 Million Unregistered Securities Scheme

The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Florida insurance agent Charles D. Oliver, alleging he illegally sold about $52 million in unregistered oil and gas securities to roughly 50 retail investors, including retired seniors.