New Account Requirements

What this video covers

• The six categories of information a firm must collect when opening a new account, and why both the agent and a principal are responsible for record accuracy
• Why principal approval is always required for every new account, and that approval is a supervisory function performed by the firm, not the customer
• The signature distinction that trips up the most test-takers: no customer signature for a basic cash account, but a signature is required for margin accounts and options accounts
• The trusted contact person (TCP) requirements: natural person, age 18 or older, and the four written disclosure purposes for contacting the TCP
• The definition of eligible adults (age 65 or older, or adults protected under state adult protective services law) and why the TCP exists to protect this population
• That a firm must make a reasonable effort to obtain a TCP, but the account opens and maintains even if the customer declines to name one