Series 14: 8.1. Opening An Account

Taken from our Series 14 Online Guide

8.1. Opening an Account

To open an individual account, a client must fill out a new customer account form. The following information must be provided in order to open an account:

Customer name and address

Whether the client is of legal age

Name of registered reps who will handle the account (not a requirement for institutional accounts)

Principal’s signature

If the customer is a corporation, the name of the person who will transact business in the account

If the account is for an individual (who is not simply purchasing unsolicited mutual funds), the firm should make reasonable efforts to obtain the following before the settlement of the first transaction in the account:

Social Security number or tax ID number (note that this information must be provided to verify the person’s identity)

Occupation of customer and address of employer

Whether the customer is employed by a bank or broker-dealer

For discretionary accounts, the dated signature of the person authorized to make trades in the account

The firm should also make reasonable efforts to collect the following additional information:

Whether officer or director at publicly held company

Citizenship

Whether cash or margin account

Third-party authorization (if any)

Trusted contact person (see below)

Customer’s age

Investment experience

Investment time horizon and liquidity needs

Risk tolerance

Financial situation and needs

Investment objectives and other holdings

Estimated annual income

Tax status

Note that neither t

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