Pass The 63 - 2015 by Walker Robert

Author:Walker, Robert
Language: eng
Format: epub
Publisher: Sure Fire Publications, LLC
Published: 2015-03-31T16:00:00+00:00

 Assignment of Contract

The prohibition against assignment of contract means that an adviser cannot sell or transfer a customer’s contract to another party without the client’s consent. Wouldn’t you be upset if you called your advisory firm and found out that since your account balance fell below a certain minimum, they just sold it to a money manager in Missoula, Montana? That’s why the contract between the investment advisor and the client can only be “assigned” to another party with the written consent of the client, and the contract must state that fact. Did you get that? Not only would the investment adviser get in trouble for assigning the contract to another party without the client’s consent, but if their contract with the client forgot to stipulate that this is not allowed, that would also get them in trouble. The Uniform Securities Act states:

no assignment of the contract may be made by the investment adviser without the consent of the other party to the contract

The Act also says:

the investment adviser, if a partnership, shall notify the other party to the contract of any change in the membership of the partnership within a reasonable time after the change

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