Method and apparatus for new accounts program

• US 6,968,317 B1
• Filed: 08/21/2000
• Issued: 11/22/2005
• Est. Priority Date: 04/28/2000
• Status: Expired due to Term

• Current Assignee: Charles Schwab & Company Incorporated (Charles Schwab Corporation)
• Original Assignee: Charles Schwab & Company Incorporated (Charles Schwab Corporation)
• Inventors: Friman, Harry, Devin, Beth, Wallace, Colleen, Chou, Gee Kin, Chapman, Janet
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Greene, Daniel L.
• Application Number:
  US09/643,021
• Time in Patent Office: 1,919 Days
• Field of Search: 705/1, 705/30, 705/34, 705/36, 705/40, 705/44, 380/24
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method for opening an on-line brokerage account includes the steps of opening an on-line brokerage account for a user based on account information received from the user, the on-line brokerage account having one or more restrictions, generating an application based on the account information; requesting that the user submit required information with the application within a predetermined time to remove the one or more restrictions from the on-line brokerage account, and removing said one or more restrictions from the on-line brokerage account when the application including the required information is received within the predetermined time.

Claims

1. A method for opening an on-line brokerage account, comprising:

opening an on-line brokerage account for a user based on account information received from the user, the on-line brokerage account having one or more restrictions, wherein the account information includes at least the following the user'"'"'s name, the user'"'"'s social security number, the user'"'"'s home address, the user'"'"'s level of investment knowledge, and the user'"'"'s approximate annual income;

generating a non-alterable application based on the account information;

electronically presenting the user with the non-alterable application, and presenting the user with a click-through agreement setting forth the terms of the on-line brokerage account;

receiving an input from the user indicating an agreement from the user to the terms of the click-through agreement;

wherein the opening of the on-line brokerage account is done in response to the receiving the input from the user indicating agreement with the click-through agreement, and initially the on-line brokerage account is subject to one or more restrictions;

performing a review of the account information to determine if it complies with rules and regulations of the Securities and Exchange Commission;

if the review of the account information determines that the account information complies with the rules and regulations of the Securities and Exchange Commission removing said one or more restrictions from the on-line brokerage account;

assigning the user an account identifier to the on-line brokerage account;

assigning the user a password to access the on-line brokerage account; and

providing the user with access to on-line brokerage account prior to the removing of said one or more restrictions;

wherein the one or more restrictions comprise one or more of preventing the user from trading securities, and preventing the user from funding the brokerage account.

2. The method of claim 1, further comprising the steps of:

closing the on-line brokerage account if the review of the account information determines that the account information does not comply with the rules and regulations of the Securities and Exchange Commission.

3. The method of claim 1, wherein when the user accesses the brokerage account prior to the removing of the restrictions the user is provided with one or more selected features of the on-line brokerage account wherein the selected features include one or more of research on securities, and the ability to set up watchlist.

4. The method of claim 3, further comprising the step of:

if the review of the account information determines that the account information does not comply with the rules and regulations of the Securities and Exchange Commission revoking access by the user to the one or more selected features of the on-line brokerage account; and

notifying the user that the application to open the on-line brokerage account has been denied.

5. The method of claim 1, further comprising the step of:

doing a background check to verify whether the account information received from the user is valid or invalid.

6. The method of claim 5, further comprising the step of:

closing the on-line brokerage account when the account information is found to be invalid during the background check.

7. A system for opening an on-line brokerage account for a client, comprising:

a client communication channel through which account information can be exchanged with the client; and

a central server capable of communicating with said client communication channel and configured to receive from said client communication channel account information for an application to open the on-line brokerage account, wherein the account information includes at least the following the client'"'"'s name, the client'"'"'s social security number, the client'"'"'s home address, the client'"'"'s level of investment knowledge, and the client'"'"'s approximate annual income,

wherein in response to receiving the account information said central server is further configured to electronically generate and present to the client in a non-alterable format a pre-filled in application for the on-line brokerage account, and a click-through agreement setting forth the terms of the on-line brokerage account;

wherein the pre-filled in application includes at least the client'"'"'s name, the client'"'"'s social security number, the client'"'"'s home address, the client'"'"'s level of investment knowledge, and the client'"'"'s approximate annual income, and

to open the on-line brokerage account so that the opened on-line brokerage account is initially subject to one or more restrictions, and to thereafter remove said one or more restrictions from the opened on-line brokerage account, without any further action from the client, when a formal review of the client and the application for on-line brokerage account has been favorably completed, and after it has been determined that the account information complies with rules and regulations of the Securities and Exchange Commission; and

wherein said central server is further configured provide a client access to the opened on-line brokerage account prior to removing said one or more restrictions.

8. The system of claim 7 further including an electronic archive in which the non-alterable, pre-filled in application for the on-line brokerage account, the click-through agreement, and the information related to the formal review of the client and application for on-line brokerage account can be stored.

9. A method for opening an on-line brokerage account, comprising:

receiving account information from a user;

electronically presenting the user a non-alterable filled in application for the on-line brokerage account, and a click-through agreement setting forth the terms of the on-line brokerage account; and

receiving an indication that the user agrees with the click-through agreement;

opening the on-line brokerage account so that the opened on-line brokerage account is initially subject to one or more restrictions;

providing the user with access to the on-line brokerage account, while it is initially subject to one or more restrictions; and

reviewing account information, and upon a successful review of the account information removing the one or more restrictions from the on-line brokerage account; and

upon an unsuccessful review closing the on-line brokerage account and terminating the user'"'"'s access to the on-line brokerage account.

10. The method of claim 9, wherein the reviewing the account information includes:

performing a background check, including a credit check, based on the account information provided by the user, and if the background check is not acceptable, closing the on-line brokerage account.

11. The method of claim 9, wherein the reviewing the account information includes:

performing a background check, including a credit check, based on the account information provided by the user, and if the background check is not acceptable, closing the on-line brokerage account,

reviewing the account information, if the background check is successful, to determine if the account information complies with rules and regulations of the Securities and Exchange Commission; and

removing said one or more restrictions, if the account information is found to comply with the rules and regulations of the Securities and Exchange Commission.

12. The method of claim 9, further including electronically archiving the non-alterable, pre-filled in application for the on-line brokerage account, and the click-through agreement.

13. The method of claim 9, wherein the providing the user with access to the on-line brokerage account, while it is initially subject to one or more restrictions, includes providing the user with an account number, a customer identifier, and a password, so that the user can access the on-line account while it is initially subject to one or more restrictions.

14. The method of claim 13, wherein the when the user accesses the on-line account while it is subject to one or more restrictions, the user is prevented from trading securities in the on-line account, but the user can use the on-line brokerage account while is subject to one or more restrictions, to research different securities, and set up watchlist to track different securities.

15. The method of claim 14 further including:

notifying the user after the one or more restrictions have been removed from the on-line brokerage account, at which point the user can trade securities in the on-line brokerage account.

16. The method of claim 9 further including:

wherein the reviewing the account information includes, performing a background check, including a credit check, based on the account information provided by the user, and if the background check is not acceptable, closing the on-line brokerage account, and if the background check is successful reviewing the account information to determine if the account information complies with rules and regulations of the Securities and Exchange Commission, and if the account information is found to comply with the rules and regulations of the Securities and Exchange Commission, removing the one or more restrictions;

electronically archiving the non-alterable, pre-filled in application for the on-line brokerage account, and the click-through agreement;

wherein the providing the user with access to the on-line brokerage account, while it is initially subject to one or more restrictions, includes providing the user with an account number, a customer identifier, and a password, so that the user can access the on-line account while it is initially subject to one or more restrictions;

wherein when the user accesses the on-line account while it is subject to one or more restrictions, the user is prevented from trading securities in the on-line account, but the user can use the on-line brokerage account while is subject to one or more restrictions, to research different securities, and set up watchlist to track different securities; and

notifying the user after the one or more restrictions have been removed from the on-line brokerage account, at which point the user can trade securities in the on-line brokerage account.

17. The method of claim 9, further including:

providing the on-line brokerage account with features which require a signature card, signed by the user;

providing the user with electronic access to a signature card form, so that the user can print out the signature card form;

upon receipt of the signature card activating features of the on-line account which require a signed signature card from the user.