Series 99 Customer Account Handling & Documentation 2

Question 1

A customer wants to add a joint account holder after the account is already opened. Which document must be updated?

Accepted Answer

Account Agreement with joint holder signature

Answer

Adding a joint account holder requires an updated Account Agreement signed by the new party.

Question 2

Under FINRA Rule 4512, how long must a member firm retain customer account records?

Accepted Answer

The life of the account plus 6 years

Answer

FINRA Rule 4512 requires retention of customer account records for the life of the account plus 6 years.

Question 3

A discretionary account allows a registered representative to:

Accepted Answer

Trade without prior customer approval on each order

Answer

A discretionary account grants the registered representative authority to trade without prior approval on individual transactions.

Question 4

Which of the following best describes a 'street name' account?

Accepted Answer

Securities held in the broker-dealer's name on behalf of the customer

Answer

In a 'street name' account, the broker-dealer holds securities in its own name for the benefit of the customer.

Question 5

When must a broker-dealer verify the identity of a new customer under the Customer Identification Program (CIP)?

Accepted Answer

Before or at the time of account opening

Answer

CIP rules require identity verification before or at account opening, not after trading begins.

(Series 99) Operations Professional Exam Practice Test