New Account Requirements
Chapters in this video
- 0:00 Cash account signature trap: principal approval vs customer signature
- 1:57 Two clocks for information gathering: core facts and reasonable-effort details
- 3:57 Institutional accounts and the 50 million dollar threshold
- 5:23 Trusted contact person request and refusal rights
- 6:47 FINRA TCP rule vs NASAA Model Act delay of disbursements
- 7:40 30-day and 36-month customer furnishing requirements
- 9:16 Final trap: options signature requirement for institutions
- 9:19 Rapid-fire exam recap
What this video covers
- Why a cash account needs no customer signature, and when margin and options accounts absolutely require one
- The two different clocks for new-account information: core identifying info at opening versus reasonable-effort details before initial settlement
- What qualifies as an institutional account under FINRA rules, and why the 50 million dollar asset threshold matters more than the type of entity
- How the trusted contact person (TCP) request works at account opening, and why a customer refusal does not block the account
- The difference between FINRA's information-gathering rule for TCPs and the NASAA Model Act that actually permits delay of disbursements for suspected exploitation
- The 30-day and 36-month furnishing requirements for account records, and why these are distinct from internal record retention periods
- Why options trading requires a signature even for institutional accounts, since risk exemptions do not override specific agreement rules
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