Customer Accounts Flashcards
Cold call times
8am-9pm in customers time zone
Who can make a cold call?
Anyone at firm
Registered rep must follow up
What must be stated on a cold call?
Rep name,
firm name,
location,
reason for call
Who verifies a new account?
Registered rep
Who approves new accounts?
Principle or supervisor
Who’s signs the new account form?
Principle
What is a predispute arbitration agreement?
If there is an issue it will go to arbitration instead of court
What is the disclosure of investment profile?
Rep can only accept unsolicited orders
What happens if customer is an employee of member firm?
Opening firm must provide duplicates of trade confirmation and account statements
In regards to suitability, what is non-financial consideration?
- employment status
- number of dependents
- age and age of children
In regards to suitability, what is financial consideration?
- Total income and net worth
- investment experience and objectives
- tax status
AML
If a cash deposit is in excess of $10k in a single day, what needs to be completed?
Currency Transaction Report (fincen form 112)
AML
How many day does a currency transaction report have to be filed in?
15 days
AML
What is a suspicious activity report? Within how many days should it be filed?
For suspicious activity
Example: Someone client inputting or taking money out just under $10k for 3 consecutive days
30 days
AML
When should the rep tell client an SAR is being conducted on them?
NEVER, it is prohibited to tell a client,
AML
What is role of Office of Foreign Asset Control (OFAC)
Make sure US economic dealings are consistent with foreign policies
AML
What countries or people are on the SDN list?
Cuba
Syria
Terrorists
AML
If business is conducted with any SDN members, with in how many days should it be reported?
10 days
What three forms are needed for a margin account?
Hypothecation
Credit agreement
Loan consent agreement
What is a hypothecation?
Pledges customer securities as collateral for loans
If customer doesn’t pay, B/D can sell securities
What are the details of a loan agreement?
- rate of interest
- when interest is due
- how rate of interest is calculated
What is needed upon opening a margin account?
Disclosure document stating all risks
What is found on new account forms?
- name address DOB
- SS#
- country of origin
- driver’s license #
- occupation/place of employment
- net worth
- investment experience and objectives
- existing insider status
- any employment with B/D
What is a loan consent agreement?
Allows BD to lend customer securities for short sale purposes
Not all BDs do this it is optional for the firm
