Series 7 practice questionmediumNetworking Arrangements — Marketing Materials
A broker-dealer operating through a networking arrangement in a bank wants to use joint marketing materials. Which statement is true?
- AJoint materials may imply the bank guarantees the securities.
- BMaterials can omit disclosure if the products are low risk.
- CAll materials must clearly disclose that securities are not FDIC insured and are not bank obligations.✓ Correct answer
- DOnly the broker-dealer's name must appear on the materials.
Explanation
Why C — All materials must clearly disclose that securities are not FDIC insured and are not bank obligations.
Regulations require that all joint marketing clearly state that securities are not bank deposits, not FDIC insured, and may lose value.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- A registered rep wants to launch a personal referral program to attract new clients to the firm. What must the rep do…
- A broker-dealer wants to compensate a third-party firm for client referrals. What documentation is required to comply…
- A registered representative is considering entering into a networking arrangement with a local credit union to refer…
- In a networking arrangement between a bank and a broker-dealer, which statement about dual employees is accurate?