Many years ago, a father opened a UGMA account for his young son. The son has just turned 17 and the father believes that the son is now old enough to start handling the account. The father wants to give trading authorization to the son and asks his representative over the phone to do this. What should the registered representative do?

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Business

Guest

15 August, 05:23

Many years ago, a father opened a UGMA account for his young son. The son has just turned 17 and the father believes that the son is now old enough to start handling the account. The father wants to give trading authorization to the son and asks his representative over the phone to do this. What should the registered representative do?

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Answers (1)

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Chewbacca · Answer 1

D. The registered representative should decline the transaction

Explanation:

Based on the information provided within the question it can be said that the representative should decline the transaction. When dealing with money and financial accounts the representative that will handle these types of transactions needs to sit down with the owner and new recipient of the account as well as see identification from both and have them sign authorization paperwork. These are safety measures in place so that a stranger isn't able to just call and take ownership of an account.