Welcome to Cashiering and Account Transfers: the operational controls that move customer money and securities, transfer accounts between firms, protect a customer's right to move an account, and keep check processing authorized and traceable.
Exam Weight: 6 of 35 in Function 1 (12% of exam)
What You'll Learn
In this unit, you'll cover:
- Movement of funds and securities: Wire transfers, Automated Clearing House (ACH) transfers, journals, customer authorization, and cash-management tools.
- Customer account transfers: Automated Customer Account Transfer Service (ACATS) processing, timing, partial transfers, and residual credits.
- Transfer-interference restrictions: The protection for a customer's transfer request when a registered representative changes firms.
- Check handling and prohibited practices: Check parties, controlled issuance, check blotters, and improper practices to avoid.
Why This Matters
Operations personnel turn customer instructions into completed, documented movements of assets. The exam tests whether you can distinguish internal book entries from external payments, follow the account-transfer timeline, and recognize when a firm may not delay a customer transfer.
Think of it this way: Cashiering is the firm's controlled handoff point. Every movement needs the right instruction, the right route, and a record that lets the firm trace what happened.
Let's start with the ways funds and securities move.