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2 Answers | Asked in Securities Law and Stockbroker Fraud for Florida on
Q: Broker decided to close my account and sell my securities. They said I broke section 3 of their agreement without detail

Is it legal for a brokerage firm to decide they no longer want to manage my account and sell my securities without my permission. They refused to transfer them to another firm.

Robert Howard Rex
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answered on Oct 12, 2022

A firm can ask a customer to leave, however they should not liquidate any positions unless authorized by the customer. Generally transfer of securities is done via ACAT which is initiated by the receiving firm. You should ask your new broker to initiate the transfer.

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