Welcome to Account Opening and Maintenance: the operational controls that establish an account correctly, keep its records current, and deliver the disclosures that fit the account and its products.
Exam Weight: 6 of 35 in Function 1 (12% of exam)
What You'll Learn
In this unit, you'll cover:
- Customer account types and registrations: How account relationships and registrations identify the customer.
- Retirement accounts and asset movement: Account types, contribution and distribution requirements, transfers, and rollovers.
- Account authority and documentation: Authority, paperwork, approvals, and settlement instructions.
- Customer information and identification: Required records, the Customer Identification Program, and Know Your Customer.
- Account maintenance: Record updates, restrictions, freezes, escheatment, and associated person accounts.
- Disclosures: Product and account disclosures, including options and mutual fund materials.
Why This Matters
Operations turns a customer request into an account that can be opened, maintained, and used correctly. The exam tests whether you can distinguish similar processes, such as a transfer versus a rollover or a restriction versus a freeze, while keeping customer information and disclosures aligned with the account.
Let's start with the account types and registrations that identify the customer relationship.