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SIE Chapter 8: Customer Accounts

Terms in this set (164)

1. Telephone solicitations party called.may be placed only between the hours of 8 a.m. and 9 p.m. local time of the
2. The caller must provide the called party with the identity of the caller and a telephone number or address at which the caller or firm may be contacted.
3. If the people being called indicate that they DO NOT WANT TO BE CALLED IN THE FUTURE, the firm making the calls must maintain such phone numbers on a permanent in-house "Do not call" list and compare this information to the national "Do not call„ list.
4. The firm making telephone solicitations must have a written policy available on demand for maintaining a "Do not call" list. Customer account numbers must be encrypted.
5. Personnel engaged in telephone solicitations must be informed and trained in the existence and use of the "Do not call" list.
6. Auto-dialing used in conjunction with pre-recorded messages is prohibited to residences, health care facilities, and radio common carriers (i.e., cellular phones or other services for which the recipient called is charged).
7. The Act also bans unsolicited or "junk fax" advertisements. A fax sent to a customer must contain all of the following information:
a. The date and time that the fax is sent
b. The identity of the sender, and
c. The telephone number of the sender
-It does not require that the number of pages in the fax be included.
8. If a prior business relationship with the person being called exists, the "no call" restriction does not apply.
9. These rules do not apply to non-profit organizations.
10. The provisions set forth in this rule are applicable to members who make telephone solicitation calls to wireless telephone numbers.
11. Unregistered cold callers are limited in what they may do with respect to solicitation of customers because they lack the appropriate registration. However, they can:
a. send investment literature to prospects
b. set-up appointments for prospects with the registered representative
c. may extend invitations to firm-sponsored events
*Note: They CANNOT pre-qualify or profile prospects.
1. Designate a specific individual or department (e.g., compliance) to serve as central advisory contact for questions about senior issues.
2. Provide employees with written guidance on senior related issues.
3. Offer training to help RRs understand and meet the needs of older investors.
4. Determine at the opening of the account whether the customer has an executed durable power of attomey.
5. Ask the client to designate a secondary or emergency contact for the account.
6. Ask the client if he or she would like to invite a friend or family member to accompany the customer to appointments.
7. Members must inform the customer that unsolicited trades placed by the customer with the member firm may be unsuitable-if that is the case
8. The following may be considered to be inappropriate investment recommendations when dealing with senior investors:
9. High pressure sales seminars and tactics are prohibited especially when they are aimed at seniors such as "limited time offer" or "you have to sign up today."
10. Generally, when making recommendations to senior investors, a registered representative should take into consideration the client's status (already retired or planning to retire) and the possible inflation risk of any investment product.
11. Registered Representatives may use a "Senior Designation" such as "retirement specialist" if the RR is currently an accredited member of a national accreditation organization (CRPC (Charted Retirement Planning Counselor), CFP (Certified Financial Planner), etc.).
a. Use of such designation requires the firm's approval.