Lucky the Banker mascotLTB
Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyChurning - Consent Myth

A client gives written permission for her agent to trade as frequently as desired. If the agent excessively trades for commissions, which BEST describes the situation under the USA?

  1. AChurning, which remains prohibited✓ Correct answer
  2. BPermissible due to written consent
  3. CPermissible only if the agent discloses all commissions
  4. DPermitted as long as the trades are profitable
Explanation

Why AChurning, which remains prohibited

Churning is prohibited regardless of client consent or trade profitability (USA 412). Written approval does not excuse violations. B, C, and D reflect common misconceptions.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Regulation of Broker-Dealers & Agents questions