Question

A registered representative is notified verbally by the nephew of a client that his uncle has passed away. Which statements are TRUE regarding the actions that the registered representative can take based on this information?
I The account should be immediately marked as "deceased"
II The account should be marked deceased only when instructions are received from the executor of the deceased's estate
III All open orders should be canceled immediately
IV All open orders should be canceled only when instructions are received from the executor of the deceased's estate

a. I and III
b. I and IV
c. II and III
d. II and IV

Answer 1

Answer: a. I and III

Explanation:

As soon as word comes through that a client has passed on, the immediate thing to do is to note the date of death and then mark the account as deceased.

After this, all open orders should be immediately cancelled. It is also best to inform a superior of the development. Any other actions would from there henceforth regarding the account is to be determined by the executor of the estate.

Answer 2

Answer:

d. II and IV

Explanation:

The nephew cannot freeze or cause the account to be freezed because he is not considered an immediate family of the deceased or an executor for the deceased. The account cannot be marked as deceased and all open orders cannot be cancelled yet until the executor who was appointed to administer the deceased estate gives the instruction or announces to the representative of the person's death. The representative must therefore endeavor to make enquiries or call the right people to get needed information