Account Maintenance and Ongoing Review
Chapters in this video
- 0:00 Why ongoing supervision is harder than account opening
- 1:01 Internal inspection frequencies by office type
- 2:13 What inspections actually examine
- 2:43 Transaction review and covered accounts
- 3:39 Form U4 vs Form U5 and the 30/60-day deadlines
- 5:28 The annual compliance meeting
- 6:06 Rapid-fire exam recap
What this video covers
- The minimum inspection frequency for an Office of Supervisory Jurisdiction (OSJ), supervisory branch, non-supervisory branch, and non-branch location, and the three-year trap the exam loves
- What internal inspections must actually examine, including safeguarding of customer funds, books and records, transmittal procedures, and documented verification of customer account information changes
- Which accounts fall under transaction review for insider trading and manipulative conduct, including member firm proprietary accounts and associated person accounts
- Why covered accounts (spouses, children, related controlled persons) are monitored, and how proxy insider trading drives the rule
- The 60-day deadline to review an applicant's most recent Form U5 (Uniform Termination Notice) versus the 30-day deadline to verify the Form U4 (Uniform Application for Securities Industry Registration)
- Why the annual compliance meeting is a separate requirement from the supervisory-control annual report, and what it must be designed to detect and prevent
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