SIE: 8.2.2. Other Account Documentation

8.2.2. Other Account Documentation

Suitability questionnaires. Under the suitability and Know Your Customer rules, FINRA members must evaluate whether each recommendation is suitable for the customer. This involves collecting information on a customer’s age, time horizon (length of investment time), liquidity needs, risk tolerance, tax status, current and future financial needs, and investment experience. The suitability questionnaire should be given at the opening of an account and kept within the customer’s account file. This questionnaire should be revisited and updated frequently—at least every 36 months.

Qualified institutional buyer forms. Customers who wish to buy or sell restricted securities under Rule 144A will need to be certified qualified institutional buyers. Recall that QIBs need to be institutions, rather than individuals, that have at least $100 million of assets under management. Customers will need to fill out a form reflecting this upon opening their accounts.

Private placement documents. Investors who are investing in a private placement will need to be given the following docume