"New York Stock Exchange Rule 405 - officially entitled 'Diligence as to Accounts' and commonly referred to as the 'know your customer' rule - requires every member of the NYSE to '[u]se due diligence to learn the essential facts relative to every customer....' NASD Rule 2310 similarly requires its member firms to 'make reasonable efforts to obtain information concerning: (1) the customer's financial status; (2) the customer's tax status; (3) the customer's investment objectives; and (4) such other information used or considered to be reasonable by such member or registered representative in making recommendations to the customer.'"
(http://www.sec.gov/answers/bd-persinfo.htm, 2004)