Account Authorizations: POA, Trust Documents, and Corporate Resolutions
Chapters in this video
- 0:00 Who actually has authority to trade
- 1:26 Power of attorney and the individual agent
- 2:05 Trust instrument and the trustee double duty
- 3:08 Corporate resolution and the officer trap
- 4:12 Side by side: document, entity, authorized person
- 4:38 What the rule really requires versus industry practice
- 5:48 Rapid-fire exam recap
What this video covers
- Why a power of attorney (POA) names an agent for an individual customer's account, and why that document cannot be used for a trust or corporation
- How the trust instrument serves double duty: naming the trustee with trading authority while also proving the trust exists under the customer identification program (CIP)
- What a corporate resolution actually does: the board document that names specific officers authorized to transact on the corporation's behalf
- Why the exam traps you for swapping agent (individual), trustee (trust), and officer (corporation), and how to keep each paired with its correct document
- What the customer account information rule literally requires: recording the names of persons authorized to transact, not any specific document title
- Why POA, trust instrument, and corporate resolution are industry-practice terms, not formally defined regulatory terms, and what that distinction means on test day
- How to spot fact patterns that test whether you know the rule demands names of authorized persons versus whether you wrongly assume a specific document is mandated
Read the full lesson, free
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