Series 7 practice questioneasyAccount Documentation — Account Approval
Who must approve the opening of a new customer account at a broker-dealer?
- AThe customer's attorney
- BA registered principal (supervisor) of the firm✓ Correct answer
- CFINRA directly
- DThe SEC
Explanation
Why B — A registered principal (supervisor) of the firm
A registered principal (also called a supervisor or branch manager) must review and approve all new account applications. This supervisory approval ensures that the account documentation is complete, the customer's information has been verified, and the account type is appropriate. Neither FINRA nor the SEC directly approves individual account openings.
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