Question

You are an RR and one of your fellow RRs decides to open an online trading account with an unaffiliated firm because the transaction fees are lower with their online services. Of the following, which are correct regarding NYSE regulations on this type of situation?

I. Only margin accounts must abide by NYSE regulations.
II. Regardless of whether it is a margin account or a cash account, the NYSE regulations must be followed.
III. The employing firm must receive duplicate statements and confirmations.
IV. The employing firm must consent to the opening of the account and must do so in writing.
(A) I only
(B) I, II, and III only
(C) II, III, and IV only
(D) I, II, III, and IV

Answer 1

II, III, IV

Step-by-step explanation:

In a situation where an RR of a member firm opens an account with another unaffiliated member firm, the employee must have written consent to do so. Secondly, the unaffiliated firm must send duplicate copies of statements and confirmations to the employing firm. These guidelines are stringent and must be met regardless of whether the account is a cash account or a margin account.