Recommendations by a registered representative to a customer about options strategies may still be suitable if the: A customer has not received the Options Disclosure Document B opening of the account has not been approved by the Registered Options Principal C representative is unsure about the client's ability to assume the risk associated with a specific options strategy D customer has not signed the Options Agreement

Question

Xzavier Roth

Business

9 November, 01:13

Recommendations by a registered representative to a customer about options strategies may still be suitable if the: A customer has not received the Options Disclosure Document B opening of the account has not been approved by the Registered Options Principal C representative is unsure about the client's ability to assume the risk associated with a specific options strategy D customer has not signed the Options Agreement

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Answers (1)

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Isabell Valentine · Answer 1

The correct answers are letters "A", "B", and "C".

Explanation:

Options brokers cannot provide any strategies to investors unless the Options Disclosure Document (ODD) was not sent to the investor, the Registered Options Principal has not approved the opening of the account of the investor or if the investor intends to apply a strategy that the broker is not sure if the investor can accept the risk inherent.

The Options Agreement must be signed by the investor and returned to the broker within 15 days but suggestions can be provided before or after the submission of the signed document.