Review suitability, Reg BI, discretionary-account, AML, OFAC, transfer, and penny-stock concepts in the Series 14 account chapter.
This section covers the broad rule set around opening and supervising customer and employee accounts. Series 14 expects the compliance officer to understand suitability, Reg BI, discretionary authority, accounts at other broker-dealers, designation of accounts, AML, OFAC, account transfers, and special regimes such as penny-stock rules. The point is to understand how account governance operates as a layered control system.
The exam often presents these issues together because real account problems are rarely isolated. A recommendation issue may also be a documentation issue. A discretionary problem may also implicate supervision and Form CRS. An account transfer issue may also reveal AML or designation weaknesses. The better answer usually is the one that restores full account-control discipline.
| Priority | Compliance question |
|---|---|
| Customer fit | Is the recommendation or activity appropriate for the account? |
| Authority | Does the firm have the right approvals and documentation? |
| Monitoring | Are AML, OFAC, and transfer obligations being followed? |
| Disclosure | Has the customer received the right relationship and product information? |