Trading, Customer Accounts, and Compliance

In this section

• Trading Securities
  Learn order types, execution, settlement, and short-sale rules tested on the SIE.
  • Types of Orders
    Review market, limit, stop, stop-limit, and other order types tested on the SIE.
  • Order Execution and Reporting
    Understand how orders are executed, routed, reported, and handled in the market.
  • Trade Confirmation and Settlement
    Review trade confirmations, settlement timing, and key post-trade obligations.
  • Short Sales and Regulation SHO
    Study short sale rules, locate requirements, and Regulation SHO basics.
• Customer Accounts
  Review account types, documentation, suitability, CIP, margin, retirement, and special account rules.
  • Types of Customer Accounts
    Understand the main customer account types and when each is used.
  • New Account Documentation
    Review the documents and records required when opening new customer accounts.
  • Suitability Requirements
    Study suitability obligations and how firms evaluate customer investment profiles.
  • Customer Identification Program (CIP)
    Learn CIP requirements, identity verification, and required recordkeeping.
  • Margin Accounts
    Understand margin account mechanics, disclosures, and borrowing risks.
  • Retirement Accounts
    Review key features of retirement accounts relevant to SIE exam questions.
  • Custodial Accounts
    Study custodial accounts, control rules, and account ownership issues.
  • Discretionary and Fiduciary Accounts
    Understand discretionary authority, fiduciary responsibilities, and account controls.
• Customer Communications and Disclosures
  Learn FINRA communication standards, disclosures, and electronic communication rules.
  • Communications with the Public
    Learn the FINRA standards for retail communications, correspondence, and institutional communications.
  • Advertising and Sales Literature
    Review advertising rules, sales literature, and approval requirements.
  • Electronic Communications and Social Media
    Study email, social media, and other electronic communication rules.
  • Disclosure Requirements
    Understand the disclosure obligations that apply to customer communications.
• Prohibited Activities
  Review insider trading, manipulation, fraud, unauthorized activity, and other prohibited conduct.
  • Insider Trading
    Review insider trading rules and the misuse of material nonpublic information.
  • Market Manipulation
    Study manipulative practices and how markets guard against manipulation.
  • Fraudulent Activities
    Understand common forms of securities fraud and related compliance issues.
  • Unauthorized Transactions
    Review unauthorized trading and the controls designed to prevent it.
  • Selling Away and Outside Business Activities
    Learn the rules on selling away and outside business activities.
  • Churning and Excessive Trading
    Understand churning, excessive trading, and related suitability concerns.
  • Borrowing From or Lending to Customers
    Review the restrictions on borrowing from or lending to customers.
  • Sharing in Customer Accounts and Guarantees
    Study the limits on sharing in accounts and guaranteeing customer outcomes.
• Anti-Money Laundering Compliance
  Study Bank Secrecy Act, PATRIOT Act, SAR, and CTR obligations.
  • Bank Secrecy Act Requirements
    Understand Bank Secrecy Act recordkeeping and reporting requirements.
  • USA PATRIOT Act Provisions
    Review the PATRIOT Act provisions that affect customer identification and AML controls.
  • Suspicious Activity Reporting (SAR)
    Learn when firms file suspicious activity reports and how SAR confidentiality works.
  • Currency Transaction Reporting (CTR)
    Understand currency transaction reporting requirements and related AML rules.
• Privacy and Confidentiality
  Learn Regulation S-P and identity-theft prevention requirements.
  • Regulation S-P and Privacy Notices
    Review Regulation S-P privacy notice, safeguarding, and opt-out requirements.
  • Identity Theft Prevention and the Red Flags Rule
    Study identity-theft prevention programs and the Red Flags Rule.