Portfolio transfers enable the transfer of money from one investment firm or brokerage to another and the release of capital from underperforming portfolios. Investors and insurers are using portfolio transfers more and more frequently. This blog covers all you need to know about transferring portfolios.
Where to Start
Fortunately, there isn’t much of a need to contact your existing stockbroker or purchase stock certificates when you want to transfer your shares to another company. Simply open an account with a new stockbroker, and they typically handle everything else. This involves both the transfer of your assets out of your previous brokerage firm and all the relevant documentation. It is important to determine if you require a Medallion Guarantee during the transfer procedure.
Reasons for Transfering a Portfolio
The key reason for transferring portfolios is improved investment returns, closely followed by the need to reduce expenditures and improve portfolio performance. Also, when an investor’s former broker goes out of business or increases service fees, they may need to transfer their portfolio to a new brokerage firm.
The Portfolio Transfer Process
- Download and review the most recent statement from your existing account before starting the transfer process, as the new stockbroker will find this information helpful. You should include your account number, the type of account you have, and information on your investments.
- Open an account with the new broker after reviewing your options. Most brokerage companies offer an easy online method for investors to open accounts. They will usually need your name, address, date of birth and possibly some other official documentation, but this will vary. Additionally, the account you intend to open should be compatible with the one you plan to transfer.
- Begin using the new broker and start the funds transfer procedure. You will be guided step-by-step through a procedure that includes filling out a Transfer Initiation Form. The old and new stockbrokers will then coordinate the transfer of your assets as necessary.
- Your job is done. More often than not, automated processes are used to move most portfolios. It will be your new broker’s job to assess your assets for in-kind transfer. Most of the time, the transfer procedure is finished in three to six days. You can now enjoy your new account with the new brokerage firm once everything has been completed.
Contact Medallion Guarantee on 0203 985 9551.