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The Automated Customer Account Transfer Service (ACATS) standardizes broker-to-broker transfers. After the receiving firm (new firm) submits the transfer instruction and the customer signs the transfer authorization, the carrying firm (old firm) must validate or take exception within one business day. Once validated, the carrying firm must transfer the customer’s positions and cash so the account is established at the receiving firm within three business days. During the transfer, the carrying firm must cancel open orders and restrict the account to liquidation transactions only; new purchases should not be entered at the old firm. Exceptions may be taken only for permissible reasons (e.g., mismatched account titles, court orders, or lack of proper authorization). Series 7 candidates must recognize customer rights to portability, the operational timelines, and the importance of accurate books and records. Clear communication with the customer about dividend/interest accruals and residual credits (“due bills”) after transfer completion is also part of proper account servicing and record maintenance.