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ARTICLE · 13 APRIL 2021

FINRA Highlights Members' Obligations Concerning Options Accounts

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AML requirements, specifically the "Customer Identification Program," pursuant to FINRA Rule 3310(b).

United StatesFinance and Banking
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FINRA reminded members of their obligations regarding (i) the performance of due diligence on customers seeking to open trade options, (ii) the supervisory reviews of options accounts and (iii) margin requirements for options.

FINRA recommended members review their policies regarding:

  • the approval process of opening a customer's brokerage account for options, pursuant to FINRA Rule 2360 ("Options");
  • obtaining customer information, pursuant to FINRA Rule 4512 ("Customer Account Information");
  • "reasonable diligence" when opening and maintaining such accounts, pursuant to FINRA Rule 2090 ("Know Your Customer"); and
  • AML requirements, specifically the "Customer Identification Program," pursuant to FINRA Rule 3310(b).

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