Customer Communications and Records: Rapid Fire
Chapters in this video
- 0:00 The 20-year customer and the closing-account trap
- 1:24 Trade confirmations and mandatory capacity disclosure
- 2:35 Account statement frequency and the realized-vs-unrealized gain trick
- 3:09 Address changes, 30-day updates, and identity-theft safeguards
- 3:48 The 6-3-2 records retention framework
- 4:58 ACATS initiation, validation, completion, and foot-dragging traps
- 6:44 Rapid-fire exam recap
What this video covers
- Why trade confirmations must disclose capacity as agent, principal, or net, and what each capacity means for commission versus markup or markdown
- The quarterly minimum for account statements and why monthly is common practice, not a requirement
- How the 6-3-2 framework works for records retention, including the 2-year easily accessible rule and the fresh 6-year clock that starts at account closing
- When a firm has 30 days from notice to update customer account records, and why the old address gets the change notification
- The ACATS timeline of 1 business day to validate and 3 business days to complete, plus the limited enumerated reasons a carrying firm may take exception
- Why variable annuities generally do not move through ACATS, and the exam distinction between a broker-dealer-of-record change and a tax-free exchange
- What material events versus clerical updates mean for investment objective changes, and why shifting the objective governs future recommendations without triggering a blanket portfolio review
Read the full lesson, free
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