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SIE: Account Types
SIE practice questionhardAccount Types – Death of Account Holder

When an account holder dies, what action should a broker-dealer take regarding the account?

  1. AFreeze the account upon notification✓ Correct answer
  2. BAllow all transactions to continue
  3. CTransfer assets to a new account without documentation
  4. DAutomatically close the account
Explanation

Why AFreeze 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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