DriveWealth, LLC

DriveWealth, LLC (CRD #165429), a FINRA member firm since 2013, has been censured and fined $100,000 for failing to process over 1,200 customer account transfer requests in a timely manner between June 2020 and October 2022.

According to FINRA, DriveWealth had an arrangement with a clearing firm to handle outgoing account transfers via the Automated Customer Account Transfer Service (ACATS). However, because the clearing firm operated under an omnibus agreement, it relied on DriveWealth to provide customer-specific transfer data. DriveWealth repeatedly failed to meet internal deadlines for providing this information, which led to 1,206 transfer requests being purged from the ACATS system.

This conduct violated FINRA Rules 11870(a), which governs the efficient processing of customer account transfers, and 2010, which requires members to observe high standards of commercial honor. DriveWealth ended the problematic clearing arrangement in October 2022 and began processing transfers on its own.

If you were a customer of DriveWealth and experienced delays or issues with your account transfers, contact ChapmanAlbin to explore your legal rights and potential recovery options.

Call 1-877-410-8172 or visit chapmanalbin.com for a free consultation.