Free FINRA Series 7 (General Securities Representative) Opening Accounts Practice Questions
Account opening and customer documentation on the FINRA Series 7 exam covers new account forms, suitability requirements (FINRA Rule 2111), anti-money laundering (AML) compliance, Customer Identification Program (CIP), and fiduciary obligations.
Sample Questions
Question 1
Easy
In a Delivery Versus Payment (DVP) account, settlement occurs when:
Solution
Choice B is correct because Delivery Versus Payment (DVP) accounts require the simultaneous exchange of securities and payment. The customer's agent bank delivers payment at the same time the broker-dealer delivers the securities, eliminating settlement risk.
Question 2
Medium
Under Regulation Best Interest (Reg BI), which document must a broker-dealer deliver to a retail customer at or before the time of a recommendation?
Solution
Choice C is correct because Regulation Best Interest requires broker-dealers to deliver Form CRS (Customer Relationship Summary) to retail customers at or before the time a recommendation is made. Form CRS describes the firm's services, fees, conflicts of interest, and disciplinary history in a concise, plain-language format.
Question 3
Hard
Under FINRA Rule 4512, which of the following is considered an "essential fact" that a broker-dealer must attempt to obtain when opening a new individual customer account?
Solution
Choice B is correct because FINRA Rule 4512 requires broker-dealers to obtain essential customer account information including the customer's name, tax identification number, address, date of birth, occupation, employer name and address, and whether the customer is an associated person of another member firm. These facts are necessary for proper account administration, suitability determinations, and regulatory compliance.