SIE practice questionmediumSEC Customer Identification Program
Under the Customer Identification Program, what must a brokerage firm do before opening a new account?
- ACollect identifying information and reasonably verify the customer's identity✓ Correct answer
- BMedical records
- CCredit card statement
- DCollege transcripts
Explanation
Why A — Collect identifying information and reasonably verify the customer's identity
CIP requires the firm to collect identifying information and reasonably verify the customer's identity using documentary or non-documentary methods. A government-issued ID may be one verification method, but it is not the only method universally required before opening an account. Medical records, credit card statements, and college transcripts are not CIP requirements.
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