Customer Accounts - Important Account Rules
Opening the brokerage account is just the first step. A registered representative and the firm for which he or she works have ongoing responsibilities to their clients and to their regulators.
Broker-dealers must send confirmation of each transaction to the account owner at or prior to settlement.
- These are supplemented by monthly (or, in a thinly trading account, quarterly) statements. These and all other substantive notes to the investor must be reviewed and approved by a manager.
- Broker-dealers must also retain any correspondence received from each client.
- The accounts of employees of SROs or other broker-dealers require additional scrutiny at the supervisory level for as long as they are open in order to ensure that there are no conflicts of interest. Duplicate confirmations and account statements must be sent to the investor's employer.
- For those accounts over which the registered representative has discretionary authority, each order needs to be marked "discretion" and approved by a manager.
- The broker-dealer also needs to keep this correspondence on file:
- Changes in designation on orders
- Erroneous reports to customers regarding order executions
- Customer complaints
- Acceptance of COD purchase orders
BrokersIndependent broker-dealers are a great choice for experienced, self-starter planners who have established practices.
Personal FinanceRIAs and brokers are held to different standards when providing investment advice. Here's how they differ.
Trading Systems & SoftwareLaunching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
ProfessionalsLearn how to answer option questions on the Series 7 exam. Pass your Series 7 exam with the help of these tips.
ProfessionalsFINRA Series 55 Exam Guide
ProfessionalsFINRA Series 62 Exam Guide
ProfessionalsFINRA/NASAA Series 99 Exam Guide
ProfessionalsFINRA/NASAA Series 65 Exam Guide
ProfessionalsFINRA Series 6 Exam Guide
ProfessionalsFINRA/NASAA Series 63 Exam Guide
- No results found.
The exact nature of a financial advisor's job responsibilities determines whether he must have a Series 7 license. If a financial ... Read Full Answer >>
Financial advisors must possess various securities licenses in order to sell investment products. The specific products an ... Read Full Answer >>
The Financial Industry Regulatory Authority (FINRA) offers a variety of licenses that must be obtained before conducting ... Read Full Answer >>