broker-dealer-customer-agreement

name	broker-dealer-customer-agreement
title	Broker-Dealer Customer Agreement
description	Drafts SEC/FINRA-compliant Broker-Dealer Customer Agreements covering account opening, trading, margin, fees, risk disclosures, privacy, arbitration, and execution. Use when drafting or updating customer account agreements, brokerage agreements, or customer documentation for registered broker-dealers.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/broker-dealer-customer-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	securities
language	en

Broker-Dealer Customer Agreement

Drafts the master contractual agreement between a registered broker-dealer and its customers, covering all regulatory requirements under SEC, FINRA, Reg BI, and AML frameworks.

Prerequisites

Gather before drafting:

• Firm registration — Form BD, FINRA CRD, state registrations, dual-registrant status
• Business model — execution-only vs. full-service, order routing, PFOF, principal trading
• Product catalog — all offered security types (equities, options, mutual funds, ETFs, penny stocks, alternatives)
• Fee schedule — commissions, account fees, margin rates, revenue sharing
• Existing docs — current applications, margin/options agreements, privacy policy, Form CRS
• Regulatory history — exam findings, deficiency letters, enforcement actions

Quick Start

1. Confirm firm's business model and capacity (execution-only, recommendation-making, or dual registrant)
2. Identify all offered products and applicable special rules
3. Draft agreement sections per the structure below
4. Tailor provisions to firm's actual services — omit inapplicable sections
5. Verify all statutory/rule citations against current law
6. Ensure margin and arbitration warnings use prominent formatting (bold/caps, separate signature)
7. Cross-check consistency with Form CRS, Reg BI disclosure, fee schedule, and privacy policy

Agreement Sections

1. Party Identification & Account Establishment

• BD identification: legal name, principal office, SEC reg number, FINRA CRD
• Customer identification per CIP Rule (USA PATRIOT Act §326): name, address, DOB, SSN/TIN, citizenship
• Entity customers: beneficial owners ≥25% or control persons
• Account types: cash (Rule 15c3-3), margin (Reg T), retirement, joint (JTWROS/TIC)
• KYC/suitability data per FINRA Rules 2090/2111
• Firm reserved rights: reject applications, restrict activities, close accounts

2. Service Relationship & Obligations

• Capacity disclosure: execution-only, recommendation-making (Reg BI), or dual registrant (BD vs. IA)
• If recommendations made: Reg BI four obligations — Disclosure, Care, Conflict of Interest, Compliance
• Product-specific rules: penny stock (Rules 15g-2–15g-9), options (Rule 2360 + ODD), mutual funds (share class/12b-1), leveraged ETFs (compounding risk), day trading ($25K minimum)

3. Trading Authorization & Order Handling