PCA Operations has recently experienced an increase of new account paperwork deemed not in good order (NIGO). We would like to send this friendly reminder to all advisors and staff opening accounts with PCA that there are 5 required PCA documents that MUST be completed and received before PCA Operations will submit the account paperwork to the custodian for opening.
- New Account Form
- Client Discretionary Agreement
- Schedule A
- Investment Summary Worksheet
- Volatility Tolerance Analysis
Most of the issues we’re seeing center around the Investment Summary Worksheet and the Volatility Tolerance Analysis. Please note, while one New Account Form, Client Discretionary Agreement, and Schedule A is sufficient for a client relationship, we require one Investment Summary Worksheet per account. Therefore, if opening two accounts for a client, we MUST receive two Investment Summary Worksheets, one for each account.
Regarding the Volatility Tolerance Analysis, we are receiving incomplete VTAs where either the Soon Bucket section, or Later Bucket section has not been completed by the client(s). For compliance purposes, both sections of the VTA must be completed and the last page signed by the client(s).
Failure to comply with these policies will result in paperwork being rejected and processing delayed until the issues are resolved.
Also, we’ve seen an increase in errors at the custodian due to illegible handwritten applications. While not a requirement, please note the account applications and additional forms are fillable PDFs that the information can be typed in. Another good practice would be to provide us with a copy of the client’s driver’s license. Again, not a requirement, but would be very helpful in resolving some of the errors at the custodian.
We are currently updating some of the PCA account opening forms to make the account opening process more efficient in an effort to provide clarity and reduce processing delays. We will be pushing those out in the next week or so. Regardless, the same 5 documents will be required for opening an account with PCA.
Our goal is to provide the best advisor/client experience and your attention to this matter is greatly appreciated. Thank you!