New Account Application Template

The New Account Application Template is a voluntary model brokerage account form that is provided as a resource to firms when they design or update their new account forms. The voluntary template was created by FINRA with input from senior industry professionals and other regulators.

In developing the template, FINRA worked with a firm that specializes in presenting investor information in a clear, intuitive format to assist in the design of the application form. Some of the significant features of the template include:

 

  • Instructions and other information presented in plain-English,
  • Highlights of key disclosures, and
  • Incorporation of related investor education information.

 

Firms that choose to use this voluntary template may use it in its entirety or choose selected portions or language—there is no regulatory requirement to use it, or to use any portion of it. Please note that not all questions provided in the template are required by either FINRA or SEC regulations.

This voluntary template is intended to serve as an example of the type of application that brokerage firms may provide to their customers. This template addresses individual and joint accounts only. FINRA recognizes that firms may continue to use their proprietary application forms, methods and processes, as long as they meet all applicable regulatory requirements.

Please note that use of the voluntary template in whole or in part does not guarantee compliance with or create any safe harbor with respect to FINRA Rules, the federal securities laws or state laws. Firms are responsible for ensuring that their forms meet regulatory requirements, including meeting any AML requirements. Firms may choose to ask additional questions related to AML depending on their business model and AML needs. The template gives firms the flexibility to terminate a sweep option and transfer customer funds to an FDIC-insured bank account. This option is expected to be used solely to facilitate a firm's ability to effect bulk exchanges of customer assets in the event of adverse circumstances affecting or likely to affect a designated cash management program.

We hope that by providing this sample template, firms will benefit from being able to create easy-to-use, easy-to-read, plain-English new account forms.

 

Template Options and Helpful Documents

 

FINRA developed a number of different documents for turn-key use or to provide more information about the template, including:

 

  • The voluntary template in PDF and Word formats, which incorporates a wide range of standard sections that firms might find helpful to include on their own forms.

  • A shorter version in PDF format that demonstrates how the full version can be tailored to fit your firm's needs. For example, firms that gather additional investment background information from clients and customers after account opening may find the short version better suits their needs.

  • A demonstration of how the voluntary template might work during an online application process. For firms that offer-or plan to offer-online account opening, this version illustrates how your firm might adapt the template for online use. The demonstration shows how the online application process can be simplified by using layered disclosures, click-throughs, rollovers and hyperlinks to educate investors and also customize the questions based on each individual customer. Of course, there are many ways in which to display and render online information, and a firm's online application may differ substantially from the demonstration.

  • New Account Application Tutorial – The New Account Application tutorial is designed to highlight some of the key features of the new account application template.

 

See more information about customizing the template.

 

Related Information

 

 

Questions should be directed to Julie Hoffman, Director, Office of Emerging Regulatory Issues, at (202) 728-8448, or by email.