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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasySharing in Accounts

Under the USA, when may an agent share in the profits or losses of a client's account?

  1. ANever under any circumstances
  2. BOnly with the firm’s and client’s written consent✓ Correct answer
  3. COnly if the client is a family member
  4. DIf the agent guarantees against losses
Explanation

Why BOnly with the firm’s and client’s written consent

An agent may share in profits or losses only with written consent from both the client and the broker-dealer (USA Section 402). Family relationship or guarantees do not exempt this requirement.

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