Customer Agreements and Account Types: Rapid Fire

What this video covers

• Why a cash account requires no customer signature to open, even though a principal must still approve every new account
• The three parts of a margin agreement and which two are mandatory (credit and hypothecation) versus which one is optional (loan consent)
• The strict options-account timeline: Options Disclosure Document (ODD) delivered at or before approval, then Registered Options Principal (ROP) approval, then signed agreement returned within 15 days
• What happens when the options agreement is late: the account can only close existing positions until the signed document is on file
• Who qualifies as an eligible adult under trusted-contact protections (age 65 or older, or protected under state adult-protective-services law) and the minimum age for a trusted contact person (18 or older)
• Why a customer may decline a trusted contact and still open the account, provided the firm made a reasonable effort
• The critical distinction that registration becomes effective, never approved, and why sharing in a customer's losses counts as an illegal performance guarantee even without the word "guarantee"