Types Of Accounts Flashcards
If a customer wants to change the name on their account, who must approval the change?
A registered principal.
If a potential customer does not disclose their investment objectives and financial status, what limitations apply?
The firm may open a new account, but they cannot solicit any transactions.
If a client changes to another registered representative at the same firm, what should the new representative do?
The new registered representative should review the client’s account.
If a new customer asks a registered representative to replicate a friends’ portfolio, what should the representative do?
The representative should touch base with the client to review the suitability of the investments.
When a client opens a new account, when does the completed account form need to be sent to them?
It needs to be sent to them within 30 days.
How often does account information need to be updated?
When changes happen, but every 3 years at minimum.
To open a numbered account, what must a client do?
They must provide a written statement of ownership for record
keeping.
Is it appropriate to open a new account for purposes of investing in a new issue?
No.
Explain the difference between JTWROS and TIC accounts.
JTWROS accounts offer equal and undivided ownership, TIC accounts offer unequal and divided ownership.
In a JTWROS account, who can enter trade orders?
Either of the tenants may enter trade orders, but any checks must be payable to BOTH tenants.
How do tax returns relate to JTWROS accounts work together?
Any incomes or gains generated from the JTWROS will be aggregated on their joint return.
What happens in a JWTROS account when one tenant dies?
The surviving tenant can take full ownership of the account by presenting the death certificate to the broker-dealer where the account is held.
If one member of a joint account provides instructions to sell securities, but only with his name on the check, what should the registered representative do?
The representative is permitted to sell the securities, but should advise the member that the check must be in both names of the members of the joint account.
If an unmarried couple opens a joint account, where the boy have ownership, but want statements, checks and confirmation sent to only one SSN, when must this be specified?
At the time of account opening.
If two brothers open a joint TIC account and one brother dies, who is entitled to his side of the account?
His spouse would be entitled so long as she files the proper paperwork.
