14.1. Opening a Customer Account

To open a customer account, a customer must fill out a new customer account form. The form asks the customer to provide the following information about himself and his expectations:

• Customer identification—name, address, date of birth, number of dependents

• Employment status—occupation, employer, whether the person works for a broker-dealer

• Account features—cash account, margin account, trading authorization, settlement information

• PATRIOT Act information—Social Security or tax ID number, citizenship

• Financial situation—annual income, net worth, annual expenses, liquidity needs

• Investment experience—trading history, risk tolerance, other investments

• Investment objectives—capital preservation, income growth, capital growth

To open a new account, broker-dealers must know the customer’s identification and residence information, including whether the customer is of legal age. Accounts cannot be opened for minors or individuals who have been declared incompetent or who are dead. Broker-dealers must make reasonable efforts to obtain the remaining information requested on the customer form. In addition to the customer’s information, a new account must include the name of the registered representative who will be in charge of the customer’s account and the signature of the princ