Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

When a customer wishes to transfer their account, what form must they sign?

1. Account Transfer Application

2. Transfer Authorization Document

3. Transfer Information Form (TIF)

4. Account Movement Form

The correct answer is: Transfer Information Form (TIF)

The correct choice is based on the standard practices and terminologies used in the financial services industry concerning account transfers. When a customer is looking to transfer their investment account from one firm to another, they typically must complete a form that provides the necessary information and authorization for the transfer to occur. The Transfer Information Form (TIF) is specifically designed to capture all relevant details required to process the transfer efficiently and securely. It includes information about the accounts, the institutions involved, and the customer’s consent to facilitate the movement of their assets. In the context of industry standards, other forms mentioned may not be widely recognized or may serve different purposes. For instance, the Account Transfer Application could imply an application to open a new account rather than specifically authorizing a transfer. The Transfer Authorization Document and the Account Movement Form could also be misinterpretations of the formal terminology required in the transfer process. Understanding these definitions helps ensure compliance and aids in the smooth execution of the customer's wishes regarding their accounts.