FINRA – Reminds Members About Options Account Approval, Supervision and Margin Requirements

April 9, 2021 – The reminders are due to a recent increase in customers seeking to open brokerage accounts and trade options.

Options Account Requirements
Members required to perform due diligence on customers and collect information about the customer to support determination options trading is appropriate for the customer. Approval process members must comply when opening a customer’s brokerage account for options, and ongoing specific supervisory reviews set forth under FINRA Rule 2360. Supervisory reviews included reviewing the compatibility of options transactions with investment objectives and with types of transactions for which the account was approved. Accounts subject to customer identification rules (CIP) of anti-money laundering rules. Reminded of margin rules for options under FINRA Rule 4120 and FINRA Rule 2264. Reg BI (17 CFR 240.15L-1) obligations in making recommendations, as well as FINRA Rule 2111. Required to conform to communications rules, FINRA Rule 2110 and FINRA Rule 2220.

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