Options Account Agreement 15-Day Return Requirement
A new customer is approved for options trading on May 1st. If the customer fails to return the signed Options Account Agreement within 15 calendar days of approval, what action must the firm take?
If the customer does not return the signed Options Account Agreement within 15 CALENDAR days of account approval, the firm can ONLY permit CLOSING transactions.
Complete Analysis & Legal Rationale
Under FINRA options rules, the customer must verify financial background and return the signed agreement within 15 calendar days. If not received, no new opening positions are allowed; only closing transactions to eliminate existing risk are permitted.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Accurately applies FINRA rule: closing transactions only permitted if unreturned in 15 days.
Forced liquidation is not required; the customer may choose to close or let them expire.
90-day freeze applies to free-riding cash account violations, not options agreements.
Escrow transfers do not apply here.