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FINRA Updated New Account Application Template
February 5, 2018
To help firms prepare for recently approved new FINRA Rule 2165 (Financial Exploitation of Specified Adults) and amendments to FINRA Rule 4512 (Customer Account Information) relating to financial exploitation of seniors, FINRA has posted new versions of the voluntary New Account Application template (in both Word and PDF formats).
The new rule and amendments go into effect on February 5, 2018.
The New Account Application Template is a voluntary model brokerage account form that is provided as a resource to firms when they design or update their new account forms. The voluntary template was created by FINRA with input from senior industry professionals and other regulators.
FINRA hopes that by providing the sample template, firms will benefit from being able to create easy-to-use, easy-to-read, plain-English new account forms. In developing the template, FINRA worked with a firm that specializes in presenting investor information in a clear, intuitive format to assist in the design of the application form. Some of the significant features of the template include:
- Instructions and other information presented in plain-English,
- Highlights of key disclosures, and
- Incorporation of related investor education information.
This voluntary template can be customized, so that firms can modify the form to meet their own branding, business practices and operational requirements. (See more information about customizing the template.) Firms that choose to use this voluntary template may use it in its entirety or choose selected portions or language.
This voluntary template is intended to serve as an example of the type of application that brokerage firms may provide to their customers. This template addresses individual and joint accounts only. Firms are under no regulatory obligation to use either version of the template, in whole or in part. FINRA recognizes that firms may continue to use their proprietary application forms, methods and processes, as long as they meet all applicable regulatory requirements.