Series 99 Customer Account Handling & Documentation 4

Question 1

Under Regulation S-P, broker-dealers must provide customers with a privacy notice:

Accepted Answer

At account opening and annually thereafter

Answer

Regulation S-P requires firms to provide an initial privacy notice at account opening and an annual notice thereafter.

Question 2

A customer submits an unsigned new account form. The operations team should:

Accepted Answer

Return the form and require signature before opening the account

Answer

An unsigned new account form is incomplete; the firm must obtain the customer's signature before opening the account.

Question 3

Which account type is established under the Uniform Transfers to Minors Act (UTMA) and managed by a custodian?

Accepted Answer

UTMA custodial account

Answer

A UTMA custodial account is set up for a minor with a designated custodian who manages the assets until the minor reaches the age of majority.

Question 4

A customer's address change request received by phone should be:

Accepted Answer

Verified using a callback or written confirmation before processing

Answer

Address changes requested by phone require verification (callback or written confirmation) to prevent fraud before the change is processed.

Question 5

In a corporate account, which document establishes who is authorized to trade on behalf of the entity?

Accepted Answer

Corporate Resolution

Answer

A Corporate Resolution identifies the officers or individuals authorized to act on the entity's behalf for trading purposes.

(Series 99) Operations Professional Exam Practice Test