Client Discovery and Account Opening

This chapter is about building a defensible client file at the start of the relationship. It covers account-opening process, the New Account Application Form, disclosure, and record quality so that later recommendations and account activity rest on current, reliable information.

Topics in This Chapter

• Opening Accounts
• The New Account Application Form
• Completing the New Account Application Form
• Disclosures
• Client Records

Exam Focus

Expect questions about incomplete information, weak documentation, missing disclosures, and outdated records. The strongest answers usually focus on what still needs to be verified or recorded before the account setup can be treated as complete.

In this section

• Opening Client Accounts
  Understand account-opening controls, account types, identity checks, approvals, and records for new client accounts.
• The New Account Application Form
  Understand what the NAAF records, why it matters, and how it supports KYC, suitability, supervision, and disputes.
• Completing the New Account Application Form
  Understand how to complete the NAAF accurately, verify identity and authority, resolve inconsistencies, and support supervisory approval.
• Client Disclosure Requirements
  Understand relationship disclosure, fee and conflict disclosure, timing, documentation, and update obligations in client onboarding.
• Client Records
  Understand what client records must show, how they support suitability and supervision, and why secure retention matters.