Repapering question

As I mentioned in a previous question, our Broker Dealer is being bought out by a larger broker dealer and becoming a branch of the new BD. If we choose to go with the new, larger BD, we will be able to block transfer and we will not need to repaper our clients. We have been told that if we decide to NOT go with the new BD, we will need to repaper all of our clients, even though our current BD is ceasing to operate. It was my understanding that according to FINRA regulations, because our BD is ceasing to operate a block transfer is available for all reps regardless of what BD they choose to move to. Can anyone shed some light on this for me?


  • If it is a buyout they are not required to allow block transfers to other
    firms as they have an avenue to support the clients. In my experience about
    half the time the firms do allow block transfers to any b/d's, and the other
    times they do not. If they allow a block transfer during a buyout, the
    existing b/d will send out a negative consent letter to the clients and
    after 30 days if the clients doesn’t object to the block transfer the
    existing b/d will provide a list to your new b/d and they will send
    notifications to the direct business companies. This only works for direct
    business and not anything on a custodian platform i.e. Pershing.


    Brian E. Aukes | President | Brokers Financial
    102 S.E. 13th St. | P.O. Box 634 | Panora, IA 50216 |
    Phone: 877.886.1939 | Direct: 641.755.6806 | Fax: 641.755.4729 |

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