Acme Securities Special Procedures for Opening Accounts
Who does Acme Securities need to follow special procedures for when opening accounts?
a) Employees of Acme Securities
b) Employees of another broker-dealer
c) The spouse of an employee of another broker-dealer
d) The child of an employee of another broker-dealer
Answer:
Acme Securities must follow special procedures for accounts being opened by employees of Acme Securities, employees of another broker-dealer, and the spouse of an employee of another broker-dealer. However, special procedures are not necessary for accounts being opened by the child of an employee of another broker-dealer.
Acme Securities, a FINRA member, must ensure special procedures are followed when opening accounts for specific individuals. This includes employees of Acme Securities, employees of another broker-dealer, and the spouse of an employee of another broker-dealer. These procedures are put in place to ensure compliance with regulatory standards and to prevent any conflicts of interest. By following these special procedures, Acme Securities can maintain transparency and integrity in their account-opening process.
However, when it comes to accounts being opened by the child of an employee of another broker-dealer, Acme Securities does not require special procedures. This distinction highlights the different levels of scrutiny applied based on the relationship of the individual to the broker-dealer employee.