Series 63 practice questionmediumConflicts and disclosure in dual compensation
A William Blair agent receives both commissions on transactions and a flat quarterly advisory fee from the same client account. All of the following must be disclosed to the client EXCEPT:
- AThe amount and formula of each fee
- BPotential conflicts from dual compensation structures
- CThat the agent could earn more by recommending frequent trades
- DThe educational background of the agent✓ Correct answer
Explanation
Why D — The educational background of the agent
Disclosures under Section 406 pertain to fees, compensation, and conflicts, not personal details such as education (D). A, B, and C all relate to compensation conflicts and are required.
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