About This Chapter
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.
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.
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.
3. Information Security & Privacy Regulations in Security Industries
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.
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.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Investment Disputes & Customer Complaints
- Addressing Margin Issues