Requirements for Opening Customer Accounts
Chapters in this video
- 0:00 Tier 1 must-maintain items and who signs the acceptance record
- 1:53 Tier 2 reasonable-effort items and the mutual-fund-only exemption
- 3:35 Trusted contact person: age, optional status, and zero authority
- 4:25 TCP versus power of attorney: the exam's favorite trap
- 5:16 Triennial update cycle and material-change updates
- 6:31 Six-year record retention starting at account closing
- 7:08 Rapid-fire exam recap
What this video covers
- Which six items a firm must maintain for every account, and who must sign the general acceptance record (partner, officer, or manager, not a registered principal)
- The four reasonable-effort items in Tier 2, and when the mutual-fund-only exemption strips that entire tier away
- The trusted contact person (TCP): minimum age, optional nature, zero trading authority, and the narrow list of reasons a firm may contact them
- How the TCP differs from a power of attorney (POA), and why the exam loves to conflate them
- The account information update cycle: 30 days after opening, then every 36 months, plus immediate updates for material changes
- The six-year record retention rule, and why the clock starts at account closing, not account opening
- The exact definition of an institutional account (including the $50 million asset threshold) and which accounts escape the TCP requirement
Read the full lesson, free
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