Final answer:
If a customer refuses to provide information for a new account, a member firm should follow certain steps to ensure compliance and protect the firm from potential risks.
Step-by-step explanation:
If a customer refuses to provide information for a new account, a member firm should follow certain steps to ensure compliance and protect the firm from potential risks. First, the member firm should document the refusal and inform the customer about the legal requirements for providing the requested information. If the customer continues to refuse, the member firm should assess the regulatory implications and consider whether to proceed with opening the account. In some cases, the firm may decide to decline the account if it cannot verify the customer's identity or comply with regulations.