Required Reviews, Approvals, and Documentation
Chapters in this video
- 0:00 Who signs the general new-account acceptance record
- 1:51 Name changes: personally informed of essential facts
- 2:31 Discretionary accounts: the two-part approval test
- 4:15 Correspondence review and delegated responsibility
- 4:47 Transaction review and prompt internal investigation
- 5:12 Power of attorney versus trusted contact distinction
- 5:45 Held mail and the unbreakable statement delivery duty
- 6:27 Senior-investor temporary holds on disbursements
- 6:59 Rapid-fire exam recap
What this video covers
- Who must sign the general new-account acceptance record under the customer account information rule, and why the exam regularly traps test-takers with "registered principal" as a wrong answer
- What two written approvals are required before discretionary trading can begin, and who at the firm must provide the second one
- Why a qualified registered principal cannot rubber-stamp a name or designation change, and what "personally informed of the essential facts" means for documentation
- How supervisory responsibility for correspondence review works when non-registered staff handle the mechanical reading
- What triggers a registered principal to launch a prompt internal investigation of transactions, with specific examples of insider trading and front-running
- The critical distinction between a power of attorney (grants authority to transact) and a trusted contact (emergency information only, zero trading authority)
- Why a held-mail arrangement never relieves a firm of its duty to generate and deliver required account statements
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 6 course also includes adaptive practice questions and spaced-repetition flashcards.