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Zorluk: ZorCustomer Account Types and Ownership Structures

A broker-dealer compliance officer is conducting an operational audit of account onboarding records and trade authorization guidelines across several account structures. Which of the following statements regarding customer account documentation, trading authority, and asset disposition rules are CORRECT? (Select all that apply.)

  1. For a corporate account, a corporate resolution approved by the board of directors must be obtained to designate the specific individuals authorized to execute transactions on behalf of the firm.Cevap
  2. In a Joint Tenants with Rights of Survivorship (JTWROS) account, any single joint owner may independently place trading orders, but cash disbursements issued from the account must be made payable to all joint owners.Cevap
  3. C
    In a Tenants in Common (TIC) account, upon the death of one joint owner, the decedent's interest automatically transfers to the surviving account holders without passing through probate.
  4. D
    In an irrevocable trust account, the trustee may transfer trading authority to an un-affiliated third party without trust document authorization, provided the trust beneficiaries sign a consent waiver.

Cevap

The correct statements are that corporate accounts require a corporate resolution identifying authorized traders, and that any joint owner in a JTWROS account may trade independently while disbursements must be payable in all owners' names.
The correct statements reflect FINRA and industry standards for account administration: Corporate accounts require a corporate resolution identifying authorized representatives to protect the broker-dealer and corporation. Furthermore, joint accounts (whether JTWROS or TIC) allow any owner to initiate trades, but require disbursements to be payable to all named account holders to protect beneficial ownership.

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1
Evaluate corporate account documentation rules.
Confirm that opening a corporate account requires a corporate resolution (and corporate charter) passed by the board of directors specifying who has order entry authority.
Broker-dealers must establish verified authorization from the entity's governing board.
2
Analyze joint account trading and disbursement rules.
Confirm that while any single joint tenant can enter trades, any checks or asset withdrawals must be made out in all joint names.
This protects all owners' beneficial interests from unilateral asset conversion.
3
Evaluate joint tenancy survivorship rules (TIC vs. JTWROS).
Identify that automatic transfer to surviving owners applies to JTWROS accounts, whereas TIC account assets pass to the deceased tenant's estate.
TIC ownership does not feature rights of survivorship.
4
Assess fiduciary duty and delegation in trust accounts.
Identify that a trustee's powers are strictly defined by the legal trust agreement; third-party delegation cannot be authorized by beneficiary consent alone.
Fiduciaries must comply with the express instructions of the governing trust instrument.

Anahtar Kavram

Account Opening Documentation and Ownership Rights across Corporate, Joint, and Fiduciary Accounts
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Konular

Customer Account Types and Ownership Structures