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IM-2110-7. Interfering With the Transfer of Customer Accounts in the Context of Employment Disputes

This rule is no longer applicable. NASD IM-2110-7 has been superseded by FINRA Rule 2140. Please consult the appropriate FINRA Rule.

It shall be inconsistent with just and equitable principles of trade for a member or person associated with a member to interfere with a customer's request to transfer his or her account in connection with the change in employment of the customer's registered representative, provided that the account is not subject to any lien for monies owed by the customer or other bona fide claim. Prohibited interference includes, but is not limited to, seeking a judicial order or decree that would bar or restrict the submission, delivery or acceptance of a written request from a customer to transfer his or her account. Nothing in this interpretation shall affect the operation of Rule 11870.
Adopted by SR-NASD-2001-95 eff. Dec. 21, 2001.

Selected Notice: 02-07.