Customer accounts — new-account opening, margin, retirement
**Account opening (FINRA Rule 4512):** must record customer's name, DOB, address, SSN/TIN, occupation, employer, whether employed by a BD (then Rule 3210 employee-at-another-BD notice), investment objectives, and signatures of the RR and supervising principal. Within 30 days, send the customer a copy of the account record for confirmation.
**CIP (Customer Identification Program, AML Rule 17 CFR 240.17a-8 / 31 USC 5318):** verify name, DOB, address, ID number. OFAC check against SDN list.
**Types of accounts:** • **Cash account** — full payment by S+1 (was S+2). • **Margin account** — Reg T initial margin 50% (equities); FINRA Rule 4210 maintenance margin 25% long / 30% short. • **JTWROS / Tenants in Common / Transfer on Death.** • **UGMA/UTMA** — custodial for minors; irrevocable gift. • **Trust accounts** — trustee acts per trust document.
**Retirement accounts:** • **Traditional IRA** — pre-tax contributions (deductibility phase-outs); 2026 limit $7,000 + $1,000 catch-up at 50+. RMDs begin age 73 (SECURE 2.0). • **Roth IRA** — after-tax; no RMD for owner; qualified withdrawals tax-free (5-year rule + age 59½). • **401(k)** — 2026 elective deferral limit $23,500 + $7,500 catch-up at 50+; $11,250 super-catch-up at 60-63. • **529** — state-sponsored education-savings; qualified expenses tax-free.
**Discretionary authority** requires written authorization from the customer and firm approval (FINRA Rule 3260). All discretionary orders must be marked 'D'.