Series 63 practice questionmediumSharing in Accounts
An agent wishes to split profits on an account with a long-time client who is also her cousin. The broker-dealer consents orally, and the client provides written approval. Is this permitted under the USA?
- AYes, because the client is a family member
- BNo, because the broker-dealer's consent must be written✓ Correct answer
- CYes, with oral consent from the broker-dealer
- DYes, with written consent from the client only
Explanation
Why B — No, because the broker-dealer's consent must be written
USA Section 402 requires written consent from both the client and the broker-dealer, regardless of family relationships. Oral consent is not sufficient.
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