Series 7 transfer

Discussion in 'Professional Trading' started by jasrlew, Jul 8, 2003.

  1. jasrlew


    Curious about the Series 7 and how easy it is or isn't to transfer from one firm-brokerage or prop firm- to another. Anyone have experience with this? Could one firm "Hold it hostage" and prevent you from switching firms? Thanks!
  2. okwon


    If you got U5'd then no one is holding anything hostage.


    A member firm can hold a U-5 for a minimum of 30 days if they have "cause" (meaning you have some kind of conflict with them). That doesn't happen as often to traders, as it does for retail broker.

    No firm can "hold your license" without cause. If they do, they can be sued in arbitration and may be required to pay for your lost wages. But only a nice chunk of legal fees and a Rottweiler attorney gets that for his clients. If they have cause they must file a complaint with the local DO, and give you time to respond to the complaint in writing.

  4. Actually,,,A member firm can hold up your license for 30 day BUT now there is a new system whereby if you have a clean record, your automatically transfered the second you walk in the door.....HOWEVER if you broke any industry or firm rule or reg, they can hold up the transfer for longer then 30 days by saying :

    " Currently under investigation"
    then they can take their time