Non-ACAT Asset FAQs

Last Updated: July 2026

If advisor transitions had a villain, non-ACAT assets would at least make the shortlist.

Everything is moving along nicely...

The ACAT transfers are processing. Clients are signing paperwork. Everyone is feeling cautiously optimistic.

Then someone asks:

"What about this investment?"

And suddenly everyone is opening spreadsheets.

Non-ACAT assets aren't unusual. They're just different. The key is identifying them early instead of discovering them halfway through the transition.

What is a non-ACAT asset?

A non-ACAT asset is an investment that cannot move through the Automated Customer Account Transfer Service (ACAT).

Instead of transferring electronically with most brokerage assets, these investments often require separate paperwork, manual processing, approval from the sponsor, or an entirely different transfer process.

In other words...

They're playing by different rules.

Why can't everything just transfer the same way?

Because the financial services industry is wonderfully...creative.

Different investments have different issuers. Different custodians. Different ownership structures. Different transfer requirements.

Some investments were never designed to move through ACAT in the first place.

It's frustrating. It's also reality.

What kinds of investments are commonly non-ACAT?

Every transition is different, but common examples include:

Alternative investments
Certain annuities
Limited partnerships
Private placements
Direct business interests
Certain proprietary products
Some interval funds
Other investments with sponsor-specific transfer requirements

Every asset should be reviewed individually before assuming it can transfer electronically.

Does a non-ACAT asset mean it can't move?

Not at all.

This is probably the biggest misconception.

Non-ACAT doesn't mean impossible.

It simply means the transfer follows a different process.

Sometimes that's a little slower. Sometimes it's significantly slower. Sometimes additional paperwork is required.

Planning for that difference is what matters.

When should we identify non-ACAT assets?

Before the transition begins.

Not during. Not after. Not when the client calls asking why one account still hasn't arrived.

One of the most valuable planning exercises is reviewing holdings early enough to identify assets that require special handling.

Good transitions solve tomorrow's problems today.

Should clients be told about these assets?

Absolutely.

Clients don't expect every investment to move overnight.

They do expect someone to tell them what to expect.

A simple conversation like:

"This particular investment follows a different transfer process and may take longer than your brokerage accounts."

...prevents a surprising number of anxious phone calls later.

Can non-ACAT assets delay the entire transition?

They don't have to.

One of the most common mistakes is treating every account as if it must finish before the transition is considered successful.

Often, the vast majority of assets move normally while a handful of investments continue through separate workflows.

The important thing is tracking them—not forgetting them.

Why do advisors underestimate these assets?

Because they don't encounter them every day.

Most client accounts are relatively straightforward.

Then one household owns an investment purchased fifteen years ago through a platform nobody has thought about since the first iPhone came out.

Transitions have a remarkable ability to rediscover forgotten investments.

What's the biggest operational mistake?

Assuming someone else is handling it.

Custodians. Sponsors. Operations. Client service. Advisors.

Everyone may be involved.

Someone still needs to own the process and make sure nothing quietly disappears into a paperwork black hole.

Should we wait until every non-ACAT asset transfers before moving forward?

Usually not.

Every transition should be evaluated individually, but many firms continue serving clients while individual assets complete their own transfer timelines.

The objective isn't synchronized perfection.

It's organized execution.

Do non-ACAT assets increase client anxiety?

Only if clients don't understand what's happening.

A delay without an explanation feels like a problem.

A delay with regular communication feels like a process.

That's a surprisingly important distinction.

If you could give one piece of advice about non-ACAT assets, what would it be?

Find them early.

Really early.

They don't become easier because the resignation date gets closer.

The sooner they're identified, the sooner timelines, paperwork, expectations, and communication can be adjusted.

Nobody has ever finished a transition and said,

"I wish we'd discovered those alternative investments later."

Key Takeaway

Non-ACAT assets aren't transition killers.

Surprises are.

The firms that manage these investments successfully don't rely on luck. They identify them early, explain them clearly, assign ownership, monitor progress, and communicate realistic expectations throughout the process.

The investments may move differently. Clients should never feel like they're being treated differently.