Which of the following statements is NOT TRUE concerning the opening of an account for a new client?

The statement that an account can be opened without any identification is not true. In most jurisdictions and according to regulatory standards, financial institutions are required to verify the identity of their clients before opening an account. This requirement is rooted in anti-money laundering (AML) laws and know your customer (KYC) regulations, which are designed to prevent illegal activities, including fraud and money laundering.

Obtaining identification is a critical step to ensure that the institution has a clear record of who they are dealing with and to protect both the client and the firm. Other requirements, such as having the client sign the new account form, providing basic financial information, and disclosing investment objectives, are standard practices that help financial advisors tailor their services to meet the client’s needs and comply with regulatory obligations.