Account Supervision and Approvals: Rapid Fire
Chapters in this video
- 0:00 Sam, Riley, and Carla: the firm in one day
- 1:15 OSJ: the VIP bouncer with new account authority
- 1:43 Margin, muni, and options approval traps
- 2:51 Discretion rules and time-and-price limits
- 3:52 Safeguarding assets: trading auth vs. check authority
- 4:45 Hard numbers: SAR, pattern day trader, and free-riding freezes
- 6:25 Rapid-fire exam recap
What this video covers
- The Office of Supervisory Jurisdiction (OSJ) distinction: every OSJ is a branch office, but not every branch office is an OSJ
- Who can approve options accounts, and why a general securities principal alone is never sufficient
- The three-step flow for discretionary authority: prior written customer authorization, naming a specific individual, and principal acceptance before any trading
- Time-and-price discretion limits, and why same-day-only default permission matters for exam traps
- The customer-protection rule and Special Reserve Bank Account requirement under the Securities and Exchange Commission (SEC)
- Key thresholds including FinCEN suspicious activity report (SAR) at $5,000, pattern day trader at 4 trades in 5 business days with $25,000 minimum equity, and the 90-day free-riding freeze
- Automated Customer Account Transfer Service (ACATS) timelines: 1 business day to validate, 3 business days to complete
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