Opening Customer Accounts
MSRB Rule G-19(a) requires every municipal securities dealer and broker (collectively “dealers”) to obtain certain information about a customer before the completion of the first transaction in his account. To open an account, a customer typically fills out a new client account form. The form should record the following information:
- • Name
- • Residential or business address
- • Date of birth (to ensure that the customer is of legal age)
- • Social Security or tax ID number
- • Occupation and employer (and disclosure of whether the customer is employed by another broker-dealer)
- • Employer’s address
- • Whether it is a cash or margin account
- • Any third party trading authorization or discretionary authorization
- • Suitability information, such as a customer’s financial status, tax status, investment objectives, and other information necessary to make a recommendation
- • A pre-dispute arbitration agreement, if applicable
- • Any written authorization to