Refusing or Closing Accounts: Where the Authority Sits

What this video covers

• Why a representative cannot unilaterally open a customer account, and what principal-level documented acceptance means for refusing one
• How closing an account differs from opening or refusing it, and why the firm's own written supervisory procedures govern the decision instead
• The four specific outcomes a customer identification program must address when identity verification fails: not opening, transacting while pending, closing after failed attempts, and filing a suspicious activity report (SAR)
• Why a failed identity check may still require a suspicious activity report even after the account is refused or closed
• How to read exam answer choices that try to assign a principal's signature requirement to closing, or that end the analysis at account refusal
• The exact boundary between the representative's role and the principal's authority, and where the test writers set their traps