Learn how Series 4 tests customer verification, discretionary-account controls, and signed-options-agreement requirements.
The final step in opening an options account is verifying the customer’s background and obtaining the agreements that make the account operable. Series 4 expects you to know how customer verification works, what signed agreements are required, and how discretionary options accounts need separate supervision and approval.
This matters because the account-opening process is not complete without enforceable and reviewable customer authorization. A discretionary feature adds another level of control because the firm has to supervise not just the product risk but also the representative’s authority to act.
Questions here often reward the answer that adds review and documentation. If a signature, verification step, or discretionary approval is missing, the account is not ready for use.