(a) Prior notice generally required. Except as provided in paragraph (b) of this section, a banking
institution must provide a retail forex customer with 30 days’ prior notice
of any assignment of any position or transfer of any account of the retail
forex customer. The notice must include a statement that the retail forex
customer is not required to accept the proposed assignment or transfer and
may direct the banking institution to liquidate the positions of the retail
forex customer or transfer the account to a retail forex counterparty of the
retail forex customer’s selection.
(b) Exceptions. The requirements of paragraph (a) of this section shall not apply to
transfers:
(1) Requested by the retail forex customer;
(2) Made by the Federal Deposit Insurance Corporation as receiver or
conservator under the Federal Deposit Insurance Act or other law;
or
(3) Otherwise authorized by applicable law.
(c) Obligations of transferee banking institution. A banking institution to which retail forex accounts or positions are
assigned or transferred under paragraph (a) of this section must provide to
the affected retail forex customers the risk disclosure statements and forms
of acknowledgment required by this part and receive the required signed
acknowledgments within sixty days of such assignments or transfers. This
requirement shall not apply if the banking institution has clear written
evidence that the retail forex customer has received and acknowledged receipt
of the required disclosure statements.
