Do I need to disclose my financial information to a stock broker if I deposit cash for my buy?

This would be for an IPO. I'm already planning on giving him my SS# and Driver's License along with a cashier's check. Is he legally bound to collect all my financial information?|||YES, the broker is bound by law to determine as much financial information about you as possible. This is covered by FINRA in their "know you customer rule" and most exchanges require their members to do thorough research. They must know you net net worth, your liquid net worth, and any banking relationships.





Although most major broker/dealers do not run credit checks or D%26amp;B's, they do use a professional service that does check all customers for financial, legal and regulatory problems.





Based on my experience as both a regulator and B/D owner/manager when customers come in to buy an IPO and has done no other business with the firm, background checks and financials are thoroughly reviewed. The larger the deposit, the more checks are done.|||a cashier's check is not cash. for a cash account that already exists the broker won't need anything else.


BTW most brokerage offices will never accept cash. They are not interested in being robbed, or being involved in money laundering, or wasting manhours tracking down someone's wayward $20 deposit, and will send you to the nearest convenience store to convert it to money orders.|||I can't see any reason for his knowing anything more about you or your estate. If you're giving him secured ( I'd use a bank check %26amp; have the bank make copies for you) money to buy the stock there is no reason for him to need anything else. Waaay back when we had little money, my husband and I borrowed $100 %26amp; went %26amp; bought 100 shares of a Canadian Petroleum Co that someone had told us about. We just went in an office on our main street, handed the man the $ and got our certificate for 100 shares. No papers were signed nor any additional information given.





Ask him outright why he needs the info %26amp; then call your area's SEC or State Finance office %26amp; ask them if there's any law involved in puchasing stock. You should be investigating him rather than the other way around with all of the trouble we've had with brokerages during the past 3 years..