Quick Answer
Account maintenance keeps customer records current and applies the correct operational control when activity must be limited or stopped. It also includes required escheatment processing and proper handling and documentation of associated-person accounts. A restriction limits specified activity; an account freeze stops account activity.
Once open, an account requires current records and controls that match the action required.
Customer Records and Associated-Person Accounts
- Customer account records: Update customer account records as part of account maintenance.
- Associated-person account: Maintain accounts for associated persons of member firms using the applicable account handling and documentation.
Restricting or Freezing Accounts
| Control | Effect on activity |
|---|---|
| Restricted account activity | Limits specified account activity. |
| Account freeze | Stops account activity. |
Needed control -> determines whether activity is limited or stopped.
Exam Tip: Gotchas
- A restriction is not a freeze. A restriction limits specified activity; a freeze stops account activity. Read the requested operational action carefully.
Escheatment Process
- Escheatment: Process account property through the applicable escheatment process when required.
Think of it this way: Maintenance is a control panel: records are kept current, a restriction turns down only specified activity, a freeze stops activity, and escheatment sends property through its required process.