Exercise
Answer TRUE or FALSE
- 1. TRUE or FALSE. The only required signatures on a new client account form are those of the registered representative and the principal.
- 2. TRUE or FALSE. Only a Municipal Securities Sales Principal may review and approve the opening of a customer account.
- 3. TRUE or FALSE. All the information on the new client account form must be obtained from the customer before the completion of the first transaction in her account.
- 4. TRUE or FALSE. Opening an account for the employee of another broker-dealer is permitted without notifying the other broker-dealer as long as the account is limited to transactions in municipal fund securities.
Answers
- 1. TRUE. The client’s signature is typically not required on the new account form. The registered representative and the principal reviewing and approving the account must provide a signature. The customer may need to sign a third-party trading authorization, a hypothecation agreement if opening a margin account, or a predisp