Customer Documentation
Under FINRA Rule 4512, which of the following is the firm required to make a reasonable effort to obtain for non-institutional customer accounts?
TCP protects vulnerable investors. Firms must make reasonable effort to obtain TCP for non-institutional accounts.
Complete Analysis & Legal Rationale
FINRA Rule 4512 requires firms to make a reasonable effort to obtain the name and contact information of a Trusted Contact Person (TCP) age 18 or older for non-institutional accounts. The TCP helps protect investors, especially seniors, from financial exploitation.
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:
Fails to satisfy established regulatory or procedural criteria.
Accurately reflects standard governing principles and verified criteria.
Fails to satisfy established regulatory or procedural criteria.
Fails to satisfy established regulatory or procedural criteria.
Official Standard: Primary source referenced in the authored explanation (FINRA Rule 4512).