Question

Supervisory procedures for a FINRA member firm include, among other things, approval for new accounts. The procedures for new account approval should incorporate which of the following:

a. A process to ensure that security trades and investment-related correspondence between the firm's registered representatives and the public is reviewed and endorsed, in writing, by the registered principal.
b. A process to ensure that the client's name and address information for new accounts is sent to FINRA for CIP verification.
c. A process to ensure that new accounts are approved by the registered principal prior to transaction completion.
d. A process to ensure that the new client form authorizes the voting of proxies by the firm for securities registered in street name.

Answer 1

Supervisory procedures for new account approval in a FINRA member firm involve reviewing and endorsing security trades and communication, obtaining approval from the registered principal, and verifying client information with FINRA.

Step-by-step explanation:

Supervisory procedures for a FINRA member firm include several requirements for new account approval. Among these requirements are:

A process to ensure that security trades and investment-related correspondence between the firm's registered representatives and the public is reviewed and endorsed, in writing, by the registered principal. This ensures that all security trades and investment-related communication comply with the firm's policies and legal regulations.

A process to ensure that new accounts are approved by the registered principal prior to transaction completion. This step ensures that the registered principal has reviewed and approved the new account, minimizing potential risks and ensuring compliance.

A process to ensure that the client's name and address information for new accounts is sent to FINRA for CIP verification. This verification process is important for preventing identity theft and ensuring that accurate information is used to create the new account.

These procedures help FINRA member firms maintain integrity, compliance, and protection for both the firm and its clients.