SIE practice questionhardAccount Types – Death of Account Holder
When an account holder dies, what action should a broker-dealer take regarding the account?
- AFreeze the account upon notification✓ Correct answer
- BAllow all transactions to continue
- CTransfer assets to a new account without documentation
- DAutomatically close the account
Explanation
Why A — Freeze the account upon notification
Upon learning of a customer’s death, the broker-dealer must freeze the account and await further legal instructions; trading cannot continue until documentation is received.
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