General Securities Sales Supervisor (Series10) Practice Exam

To open a new account for an individual, which of the following information is required?

1. Date of Birth and Social Security Number only

2. Customer Name and Residence Address only

3. All four: Name, Address, Date of Birth, and Social Security Number

4. Only Name and Date of Birth

The correct answer is: All four: Name, Address, Date of Birth, and Social Security Number

When opening a new account for an individual, it is essential to collect comprehensive information to ensure compliance with regulatory requirements and to adequately assess the individual's identity. The collection of the individual's name, address, date of birth, and Social Security number is mandated under the Patriot Act and various Know Your Customer (KYC) regulations. This information helps financial institutions verify the identity of their customers, which is a critical step in preventing fraud and money laundering. The name and address provide basic identification, while the date of birth adds another layer of personal identification. The Social Security number is crucial for uniquely identifying the individual and is often necessary for tax reporting purposes. Collectively, this set of information allows firms to perform background checks and to establish a risk profile for the client. The other options do not encompass all that is required to open an account, as they either lack one or more of the key pieces of information necessary for proper identification and compliance. Therefore, having all four details is the required standard for opening an individual account.