Series 6 Study Guide Navigation
- Series 6 Study Guide Home
- 1.1 Reaching out to current and potential customers
- 1.2 Describing products/services and the market to customers
- 2.1 Provides information about the different account types
- 2.2 Secures customer information/documentation and looks out for suspicious activity
- 2.3 Tries to secure investment profile information regarding the customer
- 2.4 Opening accounts and the supervisory approval necessary to do so
- 3.1 Give customers details regarding strategies for investment
- 3.2 Studies and scrutinizes the investment profiles of customers to understand suitability standards and make recommendations
- 3.3 Highlights various disclosures to customers about investment products
- 3.4 Keeps customer records, provides them with information about their accounts
- 4.1 Gives current quotes
- 4.2 Confirmation for customer transactions in line with all regulatory requirements
- 4.3 Informs the appropriate supervisor and assists in resolutions
There are numerous records that need to be kept when it comes to customers of broker-dealers, we’ve touched on them throughout this guide.
Let’s just recap on one very important one.
Trade confirmations
Whenever a trade takes place, a document, known as a trade confirmation, is processed.
This contains necessary information including:
- The confirmation of the trade
- The settlement date of the trade
- The money the customer either is owned or must be paid by them
Before a trade is completed, in other words, by the settlement date, customers must be given a confirmation of that trade in a written format (this includes electronically, should the customer agree to receive it in this manner).
A copy of the confirmation from the customer will then come to the registered representative and they must then check it against the order ticket to ensure accuracy.
All trade confirmation must be kept for a period of three years by broker-dealers.
We’ve also mentioned how records should be stored numerous times as well as the duration, so we are not going to cover them again.
If you want to check the rules that govern this section, here they are:
FINRA Rules
Customer Account Statements – Rule 2231
Customer Confirmations – Rule 2232
Educational Communication Related to Recruitment Practices and Account Transfers – Rule 2273
Books and Records Requirements – Rule 4510
Customer Account Transfer Contracts – Rule 11870
SEC Rules and Regulations
Securities Exchange Act of 1934
Confirmation of Transactions – Rule 10b-10
Records To Be Preserved by Certain Exchange Members, Brokers, and Dealers – Rule 17a-4
Financial Recordkeeping and Reporting of Currency and Foreign Transactions – Rule 17a-8
MSRB Rules
Books and Records To Be Made by Brokers, Dealers, and Municipal Securities Dealers and Municipal Advisers – Rule G-8
Preservation of Records – G-9
Confirmation, Clearance, Settlement, and Other Uniform Practice Requirements with Respect to Transactions with Customers – G-15
Customer Account Transfers – G26
