Series 7 Exam Question 361: Answer and Explanation

Question: 361

Brett Overtrade is a registered representative who works for Missed Again Securities. Brett has just learned of the death of one of his customers. Which of the following actions should Brett take regarding his deceased customer's account?

I. Mark his customer's account as deceased.

II. Cancel all open orders.

III. Wait for the proper legal papers.

• A. I and II
• B. I and III
• C. II and III
• D. I, II, and III

Correct Answer: D

Explanation:

D. Upon learning about the death of a customer, a registered representative should mark the account as deceased, freeze the account (not do any trading), cancel all open orders (good-till-canceled orders), cancel all written powers of attorney, and await the proper legal papers for guidance about what to do with the account.