Unit 15- Handling Customer Accoubts Flashcards
What is on a customer trade confirmation?
- 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
When must a trade confirmation be delivered?
At or before settlement.
What is required for electronic delivery of customer docs?
Their signature
How long must trade confirmations be kept?
3 years
Rules regarding delivery of customer account statements?
- 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.
When opening a new account, when must the new account docs/records be sent to the customer?
When must updated records be sent?
Within 30 days of opening the account, and then every 36 months thereafter.
If account information is changed (name, address, etc) does a new account record need to be sent?
Yes, within 30 days of the change.
After an account closes, how long must CIP information be retained?
5 years
When transferring an account via ACAT, how long does the carrying firm have to validate and send the securities?
1 day to validate, and 3 days to send (if no issues were found)
What are the term lengths for keeping records?
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…
How long must customer complaints be kept on the records?
4 years
What happens when an account holder does?
- cancel open orders
- mark account as deceased
- freeze assets
- wait for documentation from the executor of the estate
According to FINDA, how often does a AML training need to take place?
No specific schedule, but “on an ongoing basis”.