General Securities Sales Supervisor (Series10) Practice Exam

Which information is NOT typically required for customer accounts?

1. Customer name

2. Customer occupation

3. Social security number

4. Customer’s financial background

The correct answer is: Social security number

The identification of what information is typically required for customer accounts can be nuanced, particularly when considering regulatory compliance and industry practices. The correct choice here relates to the common requirements for establishing a customer account, especially in the context of anti-money laundering (AML) and customer due diligence (CDD) standards. Customer name is essential because it is fundamental for any sort of account creation and identification process. Occupation is also relevant as it helps in understanding the customer's financial situation and suitability for various investments. The customer's financial background is crucial for assessing risk, investment strategy, and ensuring that suitable products are recommended based on the customer's financial capacity and investment goals. In contrast, while a social security number is a common identifier used in many circumstances to verify identity and ensure accurate reporting to the IRS, its necessity can depend on the specific account type or jurisdiction. For instance, a taxpayer identification number (TIN) or an employer identification number (EIN) might be sufficient in business accounts, and certain accounts may be opened without this information if alternative verification methods are used. Thus, depending on the context or specific situation, a social security number might not be universally required for all customer accounts, setting it apart from the other pieces of information that are almost always necessary.