Required Approvals and Documentation for Account Opening
Chapters in this video
- 0:00 Riley the Rep's FINRA survival checklist
- 1:12 OSJ principal sign-off: completeness, accuracy, appropriateness
- 2:01 Heightened approvals: options, margin, day trading, munis
- 3:11 Discretionary accounts: the four-step chronological rule
- 3:51 Time-and-price discretion and the one-business-day catch
- 5:00 Name and designation changes plus customer verification
- 5:28 Rapid-fire exam recap
What this video covers
- What an Office of Supervisory Jurisdiction (OSJ) principal actually checks on a new account form: completeness, accuracy, and appropriateness, with a dated written sign-off
- Why options accounts need a Series 4 Registered Options Principal (ROP), not just any principal
- Why margin account approval alone fails the test, and how the margin agreement plus hypothecation consent fit in
- The chronological discretionary-account rule: prior written authorization naming an individual, written principal acceptance, prompt written approval of each trade, and frequent reviews for churning
- Why day-trading accounts require a delivered written risk disclosure and a verbal warning does not count
- The time-and-price discretion exception: same-day only for retail customers, with the Good-Till-Cancelled extension carved out for institutional accounts
- Why name or designation changes require both principal approval and documented customer verification
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