Question

Which of the following are correct concerning customer background and financial information, according to options exchange rules?
(i)-Financial information which the customer supplies must be sent for verification by the broker/dealer within 15 days after the account has been approved for options transactions.
(ii)-If the firm becomes aware of material changes concerning existing customers, a copy of background and financial information on file must be sent to the customer within 15 days after the firm becomes aware of the change.
(iii)This information must be sent to the customer by the firm for verification within 15 days after the account is approved for options transactions unless it is contained in the customer's account agreement.
(A) I only
(B) II only
(C) III only
(D) I, II, and III

Answer 1

Answer:

(D) I, II, and III

Explanation:

1. Financial information which the customer supplies must be verified by the broker/dealer within 15 days after the account has been approved for options transactions.

2. If the firm becomes aware of material changes concerning existing customers, a copy of background and financial information on file must be sent to the customer within 15 days after the firm becomes aware of the change.

3. This information must be sent to the customer by the firm for verification within 15 days after the account is approved for options transactions unless it is contained in the customer's account agreement.