New account form

A new account form captures everything a firm must know before it can transact for a customer. Standard fields include full legal name, residential address, date of birth, Social Security or tax identification number, citizenship status, employment information, and whether the customer is associated with another member firm or is an officer, director, or large shareholder of a public company.

A second block of information supports suitability: annual income, net worth, liquid net worth, tax bracket, investment experience, time horizon, risk tolerance, and stated investment objectives such as growth, income, or preservation of capital. Firms are also expected to request a trusted contact person who can be reached if the firm suspects diminished capacity or financial exploitation.

Approval matters as much as the data. The registered representative signs the form and a designated principal must approve the account. Notably, the customer's signature is generally not required to open a straightforward cash account — it becomes necessary for accounts with added agreements, such as margin, options, or discretionary accounts. Options accounts add another layer: a registered options principal must approve the account, and the signed options agreement must be returned within 15 days of approval. Firms must also send the customer a copy of the account record to verify and update, both shortly after opening and periodically thereafter.

New account paperwork is heavily tested. The SIE and Series 9 exams focus on what information is required, who must sign and approve, and the extra steps for options accounts, while the Series 63 covers the customer agreements and disclosures that accompany account opening.