Ch 6: Handling Customer Investment Information & Discretionary Accounts

About This Chapter

Use this chapter to review information about handling customer investment information and discretionary accounts. You'll cover everything about customers' information from screening to security and privacy.

Handling Customer Investment Information & Discretionary Accounts - Chapter Summary

Among the many rules and requirements in the securities industry are ones about customer screening, information security, and privacy. This chapter will guide you through a thorough review of the various industry rules and regulations that apply. By the end of this chapter you will be able to:

  • List the rules and requirements for customer screening
  • Explain the requirements for suitability in the securities industry
  • Understand the regulations on how to keep customer information secure and private
  • Explain invested account authorizations by type and requirements
  • Describe regulations for discretionary accounts

The lessons in this chapter break down the many rules and regulations about customer information into brief lessons that help you learn at your own pace. Choose to spend as much time as you need with each lesson. Take advantage of the self-check quizzes to determine your readiness to progress. You can follow your progress on your Dashboard.

5 Lessons in Chapter 6: Handling Customer Investment Information & Discretionary Accounts
Test your knowledge with a 30-question chapter practice test
Customer Screening in Securities Industries: Rules & Requirements

1. Customer Screening in Securities Industries: Rules & Requirements

Investments firms must screen new customers before they do business for them. There are also regulations pertaining to foreign investors as well as regulations governing what buying investment brokers can do for themselves.

Suitability in the Securities Industry: Definition & Requirements

2. Suitability in the Securities Industry: Definition & Requirements

In this lesson, learn about the suitability standard, which is a standard of care used in the securities industry when financial advisors make recommendations to clients to buy, sell, or hold investments.

Information Security & Privacy Regulations in Security Industries

3. Information Security & Privacy Regulations in Security Industries

This lesson explains the privacy policy details in Regulation S-P, including descriptions of disclosures and the opt out option for customers. An example scenario is also used for for better context and application.

Investment Account Authorizations: Types & Requirements

4. Investment Account Authorizations: Types & Requirements

In this lesson, we'll learn about discretionary authority, where agents manage the investments of clients. We'll cover corporate resolutions, trusts, documentation, and federal regulations.

Securities Industry Regulations for Discretionary Accounts

5. Securities Industry Regulations for Discretionary Accounts

This lesson highlights FINRA Rule 3260 and CBOE Rule 9.10. Both of these rules pertain to activities taking place in client discretionary accounts. Both general securities transactions and options transactions are discussed.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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