Academy Catalog|CTE-FINOPS · Financial Services & Brokerage Operations Walkthrough: KYC/AML, Reg T Margin & T+1 Settlement
CTE-FINOPS0/3 Modules VerifiedBridges into: SIE, SERIES7, SERIES99, SERIES24, SERIES66, CFP
~80 min total · Module 1 Free Preview

Financial Services & Brokerage Operations Walkthrough: KYC/AML, Reg T Margin & T+1 Settlement

Walk step-by-step through FINRA Rule 2090/FinCEN CDD account opening, Reg BI suitability, Reg T 50% margin & SMA schedules, and T+1 settlement blotters.

Form-Fill Statutory Workspace~25 min · New Account Blotter #BD-101: Harborview LLC Institutional & Retail Intake

Module 1: New Account Opening (FINRA 2090), FinCEN CDD & Reg BI Care Obligation

Review two incoming new-account packets on the Harborview Securities Principal Desk: (1) an unlisted private LLC entity account and (2) a 68-year-old retiree rollover recommendation.

Broker-Dealer New Account Packet · Unedited Primary Source PacketInspect figures carefully for Stage 2 Workpaper

Exhibit 1A: New Account Intake Forms (#NA-441 & #NA-442)

Account #NA-441 — Cedar Ridge Holdings LLCOwners: M. Vance (30%), R. Vance (30%), K. Patel (20%), S. Cho (20%) · Managing Director: L. Brooks (0% equity)
Account #NA-442 — Retiree IRA RolloverAge 68, $0 Liquidity Buffer, Low Risk Tolerance · Rep Proposed: Illiquid Non-Traded REIT (7% upfront selling concession)

Governing Statutory Authorities & Practitioner Rules

FinCEN Customer Due Diligence (CDD) 25% Ownership + Control Prongs

31 CFR §1010.230 (FinCEN CDD Rule) · FINRA Rule 3310

When opening a legal-entity account, broker-dealers must identify and verify (1) every individual owning 25% or more of equity interests (up to 4 individuals) PLUS (2) 1 individual with significant responsibility to control/manage the entity (Control Prong), even if that manager owns 0% equity.

Fieldwork Tip: Count BOTH ≥25% equity owners AND the 1 Control-prong officer!

SEC Regulation Best Interest (Reg BI) Care Obligation

17 CFR §240.15l-1 (SEC Reg BI) · FINRA Rule 2090

Broker-dealers and associated persons must evaluate costs, liquidity, risks, and reasonably available alternatives—never placing broker compensation ahead of the retail customer's interest.

Fieldwork Tip: High upfront commission + multi-year lockups for a retiree needing liquidity is a textbook Reg BI rejection.