Principal Approval of New Accounts

Read the Free Lesson → free · no signup wall

Chapters in this video

  1. 0:00 Riley the Rep, Ingrid the Investor, and Penny the Principal
  2. 1:54 The principal acceptance signature requirement
  3. 2:56 Written versus verbal approval: the hallway trap
  4. 4:07 Account acceptance is not transaction review
  5. 5:13 Rapid-fire exam recap

What this video covers

  • Why a representative can never approve an account they solicited or opened, no matter how senior or well-intentioned they are
  • What titles qualify as a registered principal for the acceptance signature: partner, officer, or manager
  • Why a verbal approval from a principal fails the requirement regardless of how suitable or wealthy the customer is
  • How the account acceptance signature and the written transaction review are two separate duties with two separate regulatory homes
  • Why opening an account is not a transaction for purposes of the written principal-review requirement
  • What the exam means by evidenced in writing and why undocumented means it did not happen

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 82 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.

Read the Free Lesson → free · no signup wall