General Securities Sales Supervisor (Series 10) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

How often must customer account details be verified under SEC rules?

12 months

24 months

36 months

Under SEC rules, customer account details must be verified every 36 months, or every three years. This requirement is in place to ensure that the information held by financial institutions is up to date and accurate. Regular verification helps to maintain the integrity of customer records and assists in preventing fraudulent activities.

By periodically confirming account details, firms can ensure compliance with anti-money laundering regulations and other securities laws. This practice not only protects the firm and its customers but also is part of a broader framework aimed at maintaining the stability and trustworthiness of the financial system.

The frequency of verification has been established to strike a balance between the necessity of updating records and the administrative burden placed on firms. A three-year cycle allows for appropriate oversight without overwhelming operational capacities. Other answer choices represent different time frames that do not align with the SEC’s prescribed requirement.

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48 months

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