Customer Account Records
Chapters in this video
- 0:00 Why the filing-cabinet rules are a FINRA trap
- 1:18 Trusted contact person and the "refuse to name one" trick
- 2:49 Institutional carve-out and required account information
- 3:51 Address change notice goes to the OLD address within 30 days
- 5:23 Investment objective changes and reviewing existing holdings
- 6:32 The six-year retention rule for updates and closed accounts
- 7:15 Rapid-fire exam recap
What this video covers
- What information the customer-account-information rule requires firms to keep on file, and which two signatures are required (registered representative and principal), not the customer's
- The trusted contact person (TCP) requirement, why it applies only to non-institutional accounts, and why a customer can refuse a TCP and still open the account
- Why the institutional carve-out applies to banks, registered investment companies, and entities with $50 million or more in assets
- The address change rule: written notice goes to the FORMER address, within 30 days, as a fraud early-warning system
- What a firm must do when a customer changes investment objectives: document, notify in writing, and review existing holdings for suitability
- The six-year retention rule for updated customer information and for closed-account records
- Common exam traps, including the "is a TCP mandatory?" trick and the "where does the address-change notice go?" trick
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