Cashiering, Funds Movement and Account Transfers
This topic covers wires, ACH, journals, checks, letters of authorization, ACATS and non-ACATS transfers, residuals, medallion guarantees, and cashiering red flags.
How to study for Series 99
Treat each Series 99 item as an operations control workflow: verify authority, process accurately, reconcile breaks, preserve records, and escalate risk.
Core concepts
Concept 1
Cashiering, Funds Movement and Account Transfers questions test whether an operations professional can identify the correct operational control, processing step, record, or escalation path.
Exam cue: Identify whether the scenario involves account maintenance, money movement, settlement, processing, records, controls, or professional conduct.
Concept 2
The best Series 99 answer usually protects accurate account records, timely processing, reconciliation, supervision, customer protection, and regulatory reporting.
Exam cue: Match the answer to the operational evidence: authorization, documentation, comparison, reconciliation, reporting, supervision, or escalation.
Concept 3
Eliminate answers that bypass firm procedures, ignore exception reports, process incomplete instructions, or delay escalation of operational risk.
Exam cue: Prefer timely processing, complete records, segregation of duties, privacy, AML awareness, and exception follow-up.
Risk pitfalls and guardrails
Treating operations work as clerical when it creates customer protection, books and records, and supervisory risk.
Guardrail: Avoid answers that bypass documentation, ignore exception reports, disclose private information, or treat suspicious activity as routine processing.
Processing funds, securities, transfers, or corrections without required authority or documentation.
Guardrail: Avoid answers that bypass documentation, ignore exception reports, disclose private information, or treat suspicious activity as routine processing.
Ignoring red flags because the issue appears to be back-office or low-dollar.
Guardrail: Avoid answers that bypass documentation, ignore exception reports, disclose private information, or treat suspicious activity as routine processing.
Memory anchors
Wire Transfer
A wire transfer moves funds electronically and requires proper authorization and review.
ACH
ACH transfers move funds electronically through automated clearing channels under firm procedures.
Journal
A journal moves cash or securities between accounts within the firm when properly authorized.
LOA
A letter of authorization provides customer instructions for movement of funds or securities.
ACATS
ACATS automates eligible customer account transfers between broker-dealers.
Non-ACATS
Non-ACATS transfers require manual processing and careful tracking of required documents.
Residual Credit
Residual balances may arrive after transfer and must be processed under firm procedures.
Medallion Guarantee
A medallion signature guarantee helps validate signatures for certain securities transfers.
Check Blotter
A check blotter records check receipt, issuance, and disposition.
Cashiering Red Flag
Unusual funds movement, third-party activity, altered checks, or urgency can indicate fraud or AML risk.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A customer deposits a check payable to the broker-dealer but writes a different account number on the memo line. What should operations do?
A check payable to a customer is endorsed by an unrelated third party and presented for deposit to the customer's brokerage account. What is the best response?
Answer all questions to submit.
Next step personalized recommendations
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Move forward only after this module is stable.
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