Series 99 Customer Account Handling & Documentation 5

Question 1

Which of the following transactions would trigger a Currency Transaction Report (CTR) filing?

Accepted Answer

A $10,500 cash deposit

Answer

A CTR must be filed for any cash transaction exceeding $10,000; a $10,500 cash deposit triggers this requirement.

Question 2

A customer who is a non-resident alien must provide which IRS form to certify their foreign status and claim treaty benefits?

Accepted Answer

W-8BEN

Answer

Non-resident aliens provide Form W-8BEN to certify foreign status and claim applicable tax treaty benefits.

Question 3

A customer places an order while the firm is reviewing a suspicious activity report (SAR) related to the account. Operations should:

Accepted Answer

Process the order normally while keeping the SAR confidential

Answer

SAR filings are confidential; tipping off the customer is prohibited, so the order should be processed normally unless a freeze has been legally ordered.

Question 4

Under the SEC's Customer Protection Rule (Rule 15c3-3), a broker-dealer must maintain customer funds:

Accepted Answer

In a special reserve bank account separate from firm assets

Answer

Rule 15c3-3 requires broker-dealers to hold customer funds in a dedicated Special Reserve Account to protect them from firm insolvency.

Question 5

A customer submits a power of attorney (POA) granting a family member trading authority. Operations must:

Accepted Answer

Review and accept the POA per firm procedures, then document it in the account record

Answer

Operations must review the POA per firm procedures and document the third-party authority in the customer's account record.

(Series 99) Operations Professional Exam Practice Test

(Series 99) Operations Professional Exam Practice Test

Series 99 Customer Account Handling & Documentation 5