Quick Answer
Customer accounts are classified by the customer relationship and registered to show the account holder. A retail customer account serves a retail customer, an institutional customer account serves an institution, and a prime brokerage customer account operates through a prime brokerage relationship. Registration may be individual or corporate.
Account type identifies the relationship being serviced. Registration identifies the account holder.
Customer Account Types
| Account type | Customer relationship |
|---|---|
| Retail customer account | Maintained for a retail customer. |
| Institutional customer account | Maintained for an institutional customer. |
| Prime brokerage customer account | Maintained through a prime brokerage relationship. |
Account type -> identifies the kind of customer relationship the firm maintains.
Customer Account Registrations
| Registration type | Account holder |
|---|---|
| Individual registration | An individual customer. |
| Corporate registration | A corporate customer. |
Registration -> identifies in whose name the account is held.
Exam Tip: Gotchas
- Account type and registration answer different questions. Retail, institutional, and prime brokerage describe the relationship; individual and corporate describe the account holder.