Quick Answer
A firm's supervisory procedures must cover changes made to customer account information after the account is opened, including address and investment-objective changes, and must validate those changes. A documented customer confirmation, notification, or follow-up is required for each processed change.
An account-information change is not self-executing just because a representative submitted it.
What Review Applies to a Post-Opening Account Change?
- A firm's supervisory procedures must cover changes to customer account information made after an account is opened, including changes of address and changes of investment objectives, and the validation of those changes.
- A documented method of customer confirmation, notification, or follow-up is required for each processed account-information change.
Exam Tip: Gotchas
- An address or investment-objective change a representative submits is not self-executing. It requires firm review and a documented customer confirmation, notification, or follow-up step before the firm relies on the new information. The three routes are alternatives, so do not treat confirmation as the only one that counts.
What Should You Check on Exam Day?
- Confirm the change is a post-opening change to existing account information, not part of the original account-opening paperwork.
- Confirm the fact pattern includes a documented customer confirmation, notification, or follow-up step for the specific change processed.
- Treat an address change and an investment-objective change the same way: both require firm review and validation before the firm relies on them.