Series 6 F2: Opening accounts

1. Which pair must a member maintain for each customer account under FINRA Rule 4512(a)(1)(A)?

1. Customer income and birthplace
2. Customer occupation and diploma
3. Customer name and residence
4. Customer net worth and hobbies

2. An account-opening record identifies the customer but says nothing about legal age. Which requirement has been missed?

1. Recording whether the customer is of legal age
2. Recording whether the customer has retired early
3. Recording whether the customer owns real estate
4. Recording whether the customer has dependents

3. A partnership opens an investment account. What must the firm record about the people who may act for the partnership?

1. The names of everyone who competes with it locally
2. The names of all its vendors who accept payment
3. The names of customers who buy from it regularly
4. The names of people authorized to transact for it

4. What does the partner, officer or manager signature required by Rule 4512 signify on a customer account record?

1. A guarantee of the account's future returns
2. Acceptance under the firm's account policies
3. A waiver of the customer's privacy protections
4. Approval of each future securities transaction

5. Two representatives share responsibility for a non-institutional account. Besides their names, what must the account record indicate?

1. The amount of each representative's personal wealth
2. The scope of each representative's responsibilities
3. The date each representative last bought fund shares
4. The names of each representative's outside clients

6. A customer wants a brokerage account that requires full payment for purchases without borrowing from the firm. Which account matches that request?

1. A margin account
2. A short-sale account
3. A credit-line account
4. A cash account

7. A customer names a sibling as a trusted contact but grants no separate authority. What may the sibling do solely because of that designation?

1. Discuss permitted concerns when contacted by the firm
2. Sell fund shares whenever the customer is unavailable
3. Change account ownership when a statement is late
4. Withdraw account assets to pay the customer's bills

8. Which situation fits the purpose of contacting a customer's trusted contact?

1. The firm wants the contact to approve a sales quota
2. The firm needs a substitute signature for a purchase
3. The firm suspects possible financial exploitation
4. The firm wants the contact to guarantee market gains

9. Which person meets the age requirement to serve as a trusted contact?

1. A responsible niece who is 17
2. A financially skilled child who is 16
3. A teenage sibling who is 15
4. A trusted adult friend who is 19

10. A representative completes KYC at account opening and proposes never reviewing essential facts again. What does Rule 2090 require?

1. Reasonable diligence only before the first account deposit
2. Reasonable diligence during both opening and maintenance
3. Reasonable diligence only after a written customer complaint
4. Reasonable diligence only when the account uses borrowed funds

11. A customer requires special handling instructions for an account. How does Rule 2090 treat facts needed to follow those instructions?

1. As marketing preferences to discard after opening
2. As optional facts only if the customer borrows
3. As essential KYC facts to know and retain
4. As private facts the firm may never document

12. Someone presents a power of attorney and asks to act for a customer. Which KYC step addresses this request?

1. Determine the person's authority to act for the customer
2. Treat a shared mailing address as full trading authority
3. Treat a family relationship as unrestricted trading consent
4. Accept any requested transaction before reviewing authority

13. Before a representative exercises investment discretion in a brokerage account, which combination does Rule 3260(b) require?

1. Prior written customer authorization and written firm acceptance
2. Prior verbal customer consent and a later account statement
3. Prior customer funding and a later trade confirmation
4. Prior trusted-contact approval and a later customer signature

14. An account file contains written firm acceptance, but the customer has given only verbal permission to select mutual funds. What is still needed before exercising that discretion?

1. A statement showing the customer's first deposit
2. A prospectus signed by the fund's transfer agent
3. Prior written authorization from the customer
4. A verbal endorsement from the customer's employer

15. A representative receives discretionary authority. What additional signature record must the firm maintain under Rule 4512(a)(3)?

1. An undated signature of every relative named as a trusted contact
2. A dated signature of each associated person authorized to exercise it
3. A dated signature of every manager employed by the fund sponsor
4. An undated signature of every shareholder in the same mutual fund

16. Absent an applicable exception, which information must a broker-dealer's CIP obtain from an individual before opening the account?

1. Name, annual income, employer rating and credit limit
2. Name, investment objective, risk category and fund choice
3. Name, marital status, beneficiary choice and tax bracket
4. Name, birth date, address and identification number

17. Which identification number may a broker-dealer obtain from a non-U.S. individual under its CIP?

1. A frequent-flyer number with its airline name
2. A library card number with its branch address
3. A passport number with its country of issuance
4. A private club number with its membership date

18. How does the broker-dealer CIP rule time verification of a customer's identity?

1. Only after the account has completed its first year
2. Always before the firm collects any identifying details
3. Only when the customer requests an account withdrawal
4. Within a reasonable time before or after opening

19. A new customer opens an account remotely without appearing in person. Which CIP approach addresses this situation?

1. Automatic exemption from identity verification procedures
2. Risk-based non-documentary verification procedures
3. Reliance solely on the amount of the opening deposit
4. Waiting for the next annual review to request identity data

20. A firm cannot form a reasonable belief that it knows a new customer's true identity. What should guide its response?

1. Its written CIP procedures for unsuccessful verification
2. Its sales goal for new customer accounts that month
3. The customer's promise to buy only conservative funds
4. The balance of the account compared with other accounts

21. A customer has applied for a taxpayer identification number but has not received it. What may the firm's CIP permit?

1. Opening with no application check and permanently waiving the number
2. Opening after confirming application, then obtaining the number promptly
3. Using the representative's number until the first account withdrawal
4. Using a relative's number permanently if the opening deposit is small

22. Who must approve a member firm's written anti-money laundering program under Rule 3310?

1. A member of senior management, in writing
2. Each new retail customer, before depositing
3. The fund's transfer agent, after the first sale
4. The trusted contact, in an annual interview

23. Why must an AML program seek to understand the nature and purpose of customer relationships?

1. To establish a guaranteed rate of return
2. To replace all customer identity checks
3. To eliminate future suspicious-activity reviews
4. To develop a customer risk profile

24. Which training arrangement meets Rule 3310's express AML training requirement?

1. One initial seminar with no later training
2. Training restricted to outside auditors alone
3. Ongoing training for appropriate personnel
4. Voluntary training only after a client complaint

25. An introducing broker handles customer accounts. What is the minimum independent AML testing frequency under Rule 3310(c)?

1. Every two calendar years
2. Every three calendar years
3. Only when a regulator requests it
4. Each calendar year

26. A customer attempts a $6,000 transaction designed to evade Bank Secrecy Act requirements, but the firm stops it. Which SAR principle applies?

1. Only a completed transaction can require reporting
2. Only a profitable transaction can require reporting
3. An attempted transaction can require reporting
4. Only a cash withdrawal can require reporting

27. A broker-dealer identifies a suspect when it initially detects facts supporting a required SAR. What is the ordinary filing deadline?

1. 30 calendar days after initial detection
2. 15 business days after the account closes
3. 60 business days after the next account review
4. 90 calendar days after the first completed trade

28. A customer asks whether the broker-dealer filed a SAR about the customer's transactions. Which response follows the confidentiality rule?

1. Provide the SAR if the customer signs a confidentiality form
2. Do not reveal the SAR or information revealing its existence
3. Disclose the filing date but withhold the transaction amounts
4. Confirm the filing orally but decline to provide a paper copy

29. Absent a permitted exception, when must the initial Regulation S-P privacy notice be provided to an individual becoming a customer?

1. No later than establishment of the customer relationship
2. Only after the customer asks for the first withdrawal
3. At the end of the first full calendar year of the account
4. Only when the firm changes its privacy practices

30. Immediate delivery of an initial privacy notice would substantially delay a telephone customer's transaction, and the customer agrees to later delivery. What does Regulation S-P allow?

1. Permanent waiver of all privacy notice delivery for the relationship
2. Delivery within a reasonable time after establishing the relationship
3. Delivery only if the customer later requests a written account statement
4. Delivery after the account closes regardless of how long it remains open

31. Before obtaining or submitting for payment a check drawn on a customer's checking account, what does Rule 4514 require?

1. The customer's verbal permission alone
2. The trusted contact's oral approval alone
3. The customer's express written authorization
4. The representative's internal sales notation

32. A customer provides a separate written authorization for a negotiable instrument. Under Rule 4514, how long must the member preserve that authorization after it expires?

1. One calendar year
2. Two calendar years
3. Six calendar years
4. Three years

33. A pending customer order needs an account designation correction before execution. Under Rule 4515, when must required approval and documentation occur?

1. After the next monthly statement
2. Before the order is executed
3. When the account is finally closed
4. At the next annual compliance review

34. Before approving a change in an order's account designation, what must the designated qualified and registered principal do?

1. Approve orally and leave the essential facts undocumented
2. Rely solely on which account has the largest cash balance
3. Wait for customer silence after the next statement is sent
4. Learn the essential facts and document approval in writing

35. A grandparent deposits a completed gift into a child's UTMA account. How does FINRA describe that transfer?

1. A revocable loan to the beneficiary
2. A temporary deposit owned by the custodian
3. An irrevocable transfer to the beneficiary
4. A conditional pledge owned by the brokerage

36. While an UTMA custodianship remains in effect, for whose benefit must the custodian manage the assets?

1. The minor beneficiary's benefit
2. The donor's unrestricted personal benefit
3. The custodian's unrelated business benefit
4. The brokerage firm's general operating benefit

37. An UTMA beneficiary reaches the applicable termination age. What should the firm verify before permitting the former custodian to continue managing the assets?

1. Whether the former custodian prefers the same fund
2. Whether the original donor still receives a statement
3. Whether valid continuing authority exists
4. Whether the account earned a positive return last year

38. During a profile interview, a customer says the money is needed for a house purchase in nine months. Which factor does that date primarily establish?

1. Investment time horizon
2. Federal income tax bracket
3. Prior investment experience
4. Legal account registration

39. A customer says that even a modest principal loss would be unaffordable and distressing. Which profile factor does this most directly describe?

1. Tax filing status
2. Account ownership form
3. Employment classification
4. Risk tolerance

40. At account opening, a customer says a portion of the funds must remain quickly accessible for unexpected bills. Which profile item should capture this need?

1. Account number format
2. Liquidity needs
3. Employer identification
4. Prior trading frequency