SIE practice questionhardBeneficial Ownership in Corporate Accounts
The beneficial owner(s) of a corporate brokerage account is/are typically:
- AEvery employee of the corporation
- BThe individuals owning 25% or more of the corporation or controlling it✓ Correct answer
- COnly the CEO
- DThe broker-dealer
Explanation
Why B — The individuals owning 25% or more of the corporation or controlling it
To satisfy anti-money laundering regulations, firms must identify individuals with significant ownership or control. Not all employees or the broker are beneficial owners.
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