Screening for Special Categories of Customers

What this video covers

• How Customer Identification Program (CIP) documentation differs for U.S. citizens, resident aliens, and non-resident aliens (NRAs), and when a passport number or alien ID replaces a Social Security number (SSN)
• Why non-resident alien accounts get hit with 30% withholding on dividends, and the policy reason the Internal Revenue Service (IRS) takes it up front
• What makes someone a corporate insider, and why "principal shareholder" means 10% ownership of a class of equity securities, not 5%
• How the six-month short-swing profit rule forces insiders to disgorge profits, and why firms flag insider accounts to monitor for material nonpublic information (MNPI)
• The prior written consent rule when an associated person opens an account at another broker-dealer, and why consent comes from the employing member, not the executing member
• The 30 calendar day deadline for getting consent on pre-existing accounts after becoming associated
• The beneficial interest presumptions that pull in a spouse, dependent children, controlled accounts, and anyone the associated person materially supports financially