Navigate individual, joint (JTWROS vs TIC), trust, custodial (UGMA/UTMA), discretionary accounts, USA PATRIOT Act CIP, AML SAR/CTR filings, and SEC Rule 144 compliance.
Customer accounts and supervisory compliance account for Functions 1, 2, and 4 questions, representing about 30 to 34 questions total on the Series 7 examination.
JTWROS: Survivor gets 100% | TIC: Deceased share passes to EstateTIC requires explicit percentage division; JTWROS avoids probate for surviving co-owner.
1 Minor, 1 Custodian, Irrevocable Gift, Minor's SSN for TaxesNo margin trading; gifts are irrevocable and transfer to minor at age of majority.
CTR > $10,000 cash (15 days) | SAR ≥ $5,000 suspicious (30 days)SAR filings are confidential: never inform the customer that an SAR is being filed.
Requires Prior Written Power of Attorney + Principal ApprovalAsset, Action, and Amount must be specified by client; time and price discretion do not require POA.
Examine holding periods, 90-day volume limits, and Form 144 filing requirements.
Under the USA PATRIOT Act Customer Identification Program (CIP), what 4 pieces of identifying information MUST a broker-dealer obtain from an individual customer BEFORE opening an account?
Broker-dealers must check all prospective customers against the Specially Designated Nationals (SDN) list maintained by:
Two business partners open a joint brokerage account as Tenancy in Common (TIC) with a 60/40 ownership allocation. If the 60% owner dies, what happens to the deceased partner's share of the account?
Which statement regarding a custodial account established under the Uniform Transfers to Minors Act (UTMA) is ACCURATE?
When opening a margin account for a corporation, which document specifies WHICH individuals have legal authority to trade on behalf of the corporation?
A registered representative executes a trade for a client choosing the security and the number of shares without calling the client beforehand. Under FINRA rules, what documentation MUST be in place?
Under the Bank Secrecy Act (BSA), a broker-dealer must file a Currency Transaction Report (CTR / FinCEN Form 112) for cash transactions exceeding:
A broker-dealer identifies a series of structured deposits and questionable transactions totaling $8,500 that have no apparent business purpose. The firm files a Suspicious Activity Report (SAR). Which rule governs the notification of the customer?
When a member firm places a temporary hold on the disbursement of funds from a senior customer's account due to reasonable belief of financial exploitation, what is the initial maximum hold period permitted under FINRA Rule 2165?
Under the Securities Exchange Act of 1934 and FINRA bylaws, which event causes an individual to be subject to an automatic STATUTORY DISQUALIFICATION (SD) from the securities industry?
Before a customer can execute ANY options transactions, who MUST approve the options account in writing?