Series 63 practice questioneasyUnsolicited order exemption – documentation
If a client in State Y calls their agent and requests to buy a thinly traded foreign stock, which of the following steps is LEAST likely to be required to qualify for an unsolicited order exemption?
- AThe order ticket notes the transaction was unsolicited.
- BThe agent provides written disclosure of risks to the client.✓ Correct answer
- CThe Administrator is provided documentation if requested.
- DThe agent does not solicit the transaction in any way.
Explanation
Why B — The agent provides written disclosure of risks to the client.
USA Section 402(b)(3) requires documentation and nondiscretionary action, but not a required written risk disclosure; however, documentation is needed. Wrong answers align with standard requirements for this exemption.
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