Series 99 Customer Account Handling & Documentation 3

Question 1

Which form is used to transfer customer accounts between broker-dealers under the ACATS system?

Accepted Answer

Transfer Initiation Form (TIF)

Answer

The Transfer Initiation Form (TIF) is submitted to initiate an ACATS account transfer between broker-dealers.

Question 2

A customer requests that their account statements be sent to a third-party address. What is the primary compliance concern?

Accepted Answer

It may facilitate fraud or unauthorized account activity

Answer

Third-party address requests raise red flags for potential fraud and require heightened scrutiny and documentation.

Question 3

Under SEC Rule 17a-3, which record must a broker-dealer create for each customer?

Accepted Answer

A customer account record including investment objectives

Answer

SEC Rule 17a-3 requires broker-dealers to create and maintain a customer account record that includes investment objectives and personal financial information.

Question 4

A customer designates a Trusted Contact Person (TCP) on their account. The firm may contact the TCP to:

Accepted Answer

Address concerns about the customer's health or potential financial exploitation

Answer

The TCP may be contacted to address concerns about the customer's wellbeing or potential financial exploitation, not to take account action.

Question 5

When a customer dies, which document typically authorizes the estate representative to access and manage the account?

Accepted Answer

Letters Testamentary or Letters of Administration

Answer

Letters Testamentary (for testate estates) or Letters of Administration (for intestate) legally authorize the representative to act on behalf of the estate.

(Series 99) Operations Professional Exam Practice Test

(Series 99) Operations Professional Exam Practice Test

Series 99 Customer Account Handling & Documentation 3