Customer Accounts & Registrations
Account questions ask who owns the account, who controls trading, and which rules apply to the account type.
How to study the SIE
Learn the concept vocabulary first, then drill products, risks, rules, and prohibited-conduct patterns until they feel automatic.
Core concepts
Concept 1
Cash, margin, options, discretionary, non-discretionary, fee-based, commission, educational, and retirement accounts have different permissions and risks.
Exam cue: Name the account owner and authorized decision-maker first.
Concept 2
Individual, joint, corporate, trust, custodial, partnership, and retirement registrations determine authority, taxation, and documentation needs.
Exam cue: If discretion is present, ask whether prior written authorization and firm approval are needed.
Concept 3
IRA and qualified-plan questions often test contributions, distributions, and required minimum distributions.
Exam cue: For custodial accounts, separate custodian control from minor beneficial ownership.
Risk pitfalls and guardrails
Treating a custodial account as the custodian's personal property.
Guardrail: Eliminate answers that sound financial but miss the exact SIE rule or product feature.
Assuming margin is allowed in every account type.
Guardrail: Eliminate answers that sound financial but miss the exact SIE rule or product feature.
Confusing fee-based accounts with commission accounts.
Guardrail: Eliminate answers that sound financial but miss the exact SIE rule or product feature.
Memory anchors
Cash Account
Customer pays in full for purchases.
Margin Account
Customer borrows from broker-dealer using securities as collateral.
Discretionary
Representative can decide action, amount, or asset with proper authority.
Non-Discretionary
Customer makes the trading decision.
JT WROS
Joint tenants with right of survivorship; survivor receives interest.
Tenants in Common
Deceased owner's share passes through estate.
UTMA
Custodian manages assets for minor beneficiary.
IRA
Retirement account with contribution and distribution rules.
RMD
Required minimum distribution from certain retirement accounts.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
In a cash account, a customer is expected to
Which feature is available in a margin account but not in an ordinary cash account?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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