FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationOpening and Maintaining Customer Accounts and Investment RecommendationsMedium
A registered representative is opening a new account for a client. The client provides their name, address, date of birth, and Social Security number. The client specifically requests that the account statements and trade confirmations be sent to a P.O. Box instead of their residential address. What action should the registered representative take?
- AProcess the request immediately, as P.O. Boxes are acceptable for all account mailings.
- BInform the client that a P.O. Box cannot be used for any mailing and require a residential address.
- CAccept the P.O. Box for trade confirmations but insist on the residential address for account statements.
- DAccept the P.O. Box for all mailings, provided the firm has a record of the client's residential address on file.
Show answer & explanationAnswer & explanation
Correct answer: D. Accept the P.O. Box for all mailings, provided the firm has a record of the client's residential address on file.
FINRA rules allow for account statements and trade confirmations to be sent to an alternate address, including a P.O. Box, as long as the firm has the client's residential address on file. The residential address is crucial for regulatory purposes and for the firm to know the client's physical location.
Why the other options are wrong
- A. This is incorrect; while P.O. Boxes are acceptable for mailings, the firm must still have the residential address on file for regulatory compliance.
- B. This is too restrictive; P.O. Boxes can be used for mailings as long as the residential address is also recorded.
- C. There is no specific rule differentiating between trade confirmations and account statements for P.O. Box usage; both can be sent to an alternate address if the residential address is recorded.
Alternate Mailing Address
An address, such as a P.O. Box, to which a client requests account statements and trade confirmations be sent, distinct from their primary residential address.
- Permitted by FINRA rules.
- Residential address must still be on file.
- Used for convenience or privacy.
Memory trick: Residential Reality, P.O. Privilege.