Chapter 2: Customer Accounts

Chapter summary

Chapter 2 covers how accounts are opened, documented, and maintained. Know the ownership structures — individual, joint (JTWROS vs. TIC), corporate, partnership, trust, and custodial — and what documentation each requires. Understand who may give instructions in each registration type. Margin and options accounts require specific prior approvals. CIP rules require collecting name, date of birth, address, and ID number for every new account.

Key concepts

• New Account Documentation
• Client Authorizations Permitting Third Parties to Trade
• Special Client Arrangements
• The Employee Retirement Income Security Act (ERISA)
• Employer-Sponsored Retirement Plans - Qualified Plans
• Employer-Sponsored Retirement Plans - Non-Qualified Plans
• Account Registration Changes and Internal Transfers
• Customer Screening
• Verification of Client Information
• New Account Documentation
• Client Authorizations Permitting Third Parties to Trade
• Special Client Arrangements

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