portability agreement

Portability Agreement

An agreement between a brokerage and a client allowing the client to take his/her accounts and transfer them to another brokerage. A portability agreement may even exist if the financial product being transferred is proprietary to the first brokerage.

portability agreement

The ability of an investor to transfer a proprietary brokerage product, such as a mutual fund, to an account at a different brokerage firm.
References in periodicals archive ?
The Bell System companies affected by the Portability Act have signed a Mandatory Portability Agreement that spells out their obligations.
The Mandatory Portability Agreement outlines the actuarial determination of the amount of pension fund assets to be transferred when a covered employee changes to another former Bell System company and sets forth other relevant terms and conditions for administering portability.(16) The agreement also protects the employee's accrued pension benefit given that it cannot be reduced if the worker changes to a company with lower pension benefit levels.