Seeking business
- Retail communications need principal approval before use
- Cold calls only 8 a.m. to 9 p.m. local time; honor do-not-call lists
- Correspondence goes to 25 or fewer retail investors in 30 days
Opening accounts
- Verify identity (CIP) and gather the investment profile
- Margin accounts need a signed margin agreement
- Options accounts need principal approval and the ODD
Recommendations
- Call breakeven = strike + premium; put breakeven = strike − premium
- Reg T initial margin 50%; long maintenance 25%; short maintenance 30%
- Suitability: reasonable-basis, customer-specific and quantitative
Transactions
- Regular-way settlement is T+1; cash settlement is same day
- Confirmations go out by settlement
- Mark orders solicited, unsolicited or discretionary
Test yourself on Series 7
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