Series 7 practice questionhardAccount Documentation 5
If a representative becomes aware that a customer is a control person or affiliate of a public company, the firm should?
- Aallow unrestricted short sales immediately
- Bremove the account from surveillance
- Cwaive all new account documentation requirements
- Dnote the status because trading in that issuer may be subject to restrictions✓ Correct answer
Explanation
Why D — note the status because trading in that issuer may be subject to restrictions
Accurate documentation and timely updates are core parts of account opening and maintenance. They support regulatory compliance, tax reporting, supervision, and the firm’s ability to evaluate suitability.
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