FINRA General Securities Representative SIE Question # 19 Topic 3 Discussion
SIE Exam Topic 3 Question 19 Discussion:
Question #: 19
Topic #: 3
Under which of the following circumstances, if any, is a registered representative (RR) permitted to share in the profits and losses of security interests that the RR has purchased jointly with a customer?
A.
Only when the customer is an accredited investor
B.
Only if the RR’s firm is also a participant in the sharing arrangement
C.
When the profits and losses are proportionate to the amount contributed by the RR
Under FINRA Rule 2150, registered representatives may share in profits and losses in a customer’s account if:
The customer provides written consent.
The arrangement is approved by the RR’s firm.
The sharing is proportional to the RR's financial contribution.
C is correctbecause it aligns with FINRA requirements.
A,B, andDare incorrect because they do not meet the necessary conditions for sharing.
[Reference:FINRA Rule 2150 (Sharing in Accounts; Prohibitions), ]
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