Series 63 practice questionhardProhibited Practice: Falsifying Documents
A broker-dealer changes a client's investment profile on account paperwork to make a transaction appear suitable. Under USA Section 501, this is:
- APermissible if it benefits the client
- BFraudulent, as it falsifies material information✓ Correct answer
- CAcceptable if the client verbally agrees
- DPermitted if the Administrator is notified
Explanation
Why B — Fraudulent, as it falsifies material information
Falsifying any client documents or information is fraud under Section 501, regardless of intent or Administrator notification. Client verbal agreement (C) is not sufficient.
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