General Securities Representative (Series 7) Practice Exam

What information is required by MSRB Rule G-8 when opening new accounts?

1. Name and address of customer

2. Customer’s occupation

3. Social Security Number

4. All of the above

The correct answer is: All of the above

In accordance with MSRB Rule G-8, when opening new accounts, it is essential to gather comprehensive customer identification information to comply with regulatory requirements. This includes the name and address of the customer, which helps identify the individual and their residential details. Additionally, obtaining the customer’s occupation serves to understand their background and financial status, which is vital for assessing investment suitability and regulatory compliance. Furthermore, collecting the Social Security Number is critical for identity verification and to prevent fraud. The inclusion of all these elements ensures that the brokerage firm can perform due diligence when opening accounts, maintain accurate records, and comply with anti-money laundering regulations. Therefore, understanding that all these components—name and address, occupation, and Social Security Number—are integral to the account opening process elucidates the correct choice.