5.20.1 Transferring between clients within the same firm

As noted in Part I where the ownership by the underlying client does not change then no transaction report should be made. This applies regardless of whether the transfer takes place within the same Investment Firm or between two different Investment Firms or an Investment Firm and a Firm, as long as the owners are exactly the same.

If an Investment Firm makes a transfer between accounts that results in a transaction, it is deemed to have executed a transaction under Article 3 of Commission Delegated Regulation (EU) 2017/590. If, however, the Investment Firm’s only involvement is in the capacity of providing administrative assistance and not performing the transfer then the Firm is considered not to be executing the transaction.

 Transfers from an account held by a client to a joint account where the client is one of the joint holders is reportable. Likewise, it is reportable when a joint account changes into an account with only one owner.

This principle also applies to transfers from joint portfolios to sole portfolios, distributions from trusts to beneficiaries, transfers from parents holding accounts for minors when the minors reach majority, transfers (or sales back) to a company name owned by an individual from said individual, transfers to charity and resulting from auctions or from an Investment Firm matching a buyer with a seller.