Unit 15- Handling Customer Accoubts Flashcards

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1
Q

What is on a customer trade confirmation?

A
  • If the firm acted as agent or principal
  • If the firm acted as a duke agent
  • (agency trade) $ of commission
  • If a control relationship exists
  • (if applicable) disclosure of a deferred sales load
    -(principle trade) $ markup/markdown
    -name id security, price, and # purchased
    -(if debt security) total par value
    -(if debt security) total accrued interest
  • if the member if a market maker
    -date and time of transaction
  • (if debt security) YTC or YTM, whichever is lower
  • handling fees or mailing charges
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2
Q

When must a trade confirmation be delivered?

A

At or before settlement.

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3
Q

What is required for electronic delivery of customer docs?

A

Their signature

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4
Q

How long must trade confirmations be kept?

A

3 years

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5
Q

Rules regarding delivery of customer account statements?

A
  • Minimal delivery is quarterly
  • If the account holds penny stocks, delivery must be monthly
  • If the account holds a DPP or an unlisted REIT, the per share estimated value of the asset must be on the statement.
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6
Q

When opening a new account, when must the new account docs/records be sent to the customer?

When must updated records be sent?

A

Within 30 days of opening the account, and then every 36 months thereafter.

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7
Q

If account information is changed (name, address, etc) does a new account record need to be sent?

A

Yes, within 30 days of the change.

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8
Q

After an account closes, how long must CIP information be retained?

A

5 years

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9
Q

When transferring an account via ACAT, how long does the carrying firm have to validate and send the securities?

A

1 day to validate, and 3 days to send (if no issues were found)

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10
Q

What are the term lengths for keeping records?

A

Lifetime
- Stock certificate book
-partnership agreement
-Mins of board meetings

6 year
- blotters
- general ledger
- stock ledger
- customer ledgers
- account records
- designated principal records

3 year
- virtually all other records
- trade confirmations
- u4
- finger print cards
- order tickets
- etc…

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11
Q

How long must customer complaints be kept on the records?

A

4 years

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12
Q

What happens when an account holder does?

A
  • cancel open orders
  • mark account as deceased
  • freeze assets
  • wait for documentation from the executor of the estate
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13
Q

According to FINDA, how often does a AML training need to take place?

A

No specific schedule, but “on an ongoing basis”.

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