Series 7 practice questionmediumNetworking Arrangements — Physical Location Disclosure
A broker-dealer rents space in a credit union to offer investment services. What must the broker-dealer do at its location to comply with regulations?
- AClearly identify itself as a broker-dealer and segregate its area from the credit union’s operations.✓ Correct answer
- BUse only the credit union’s signage and branding.
- CAllow dual employees to offer deposit and securities products from the same desk.
- DOperate without any visible signs or disclosures.
Explanation
Why A — Clearly identify itself as a broker-dealer and segregate its area from the credit union’s operations.
Broker-dealers must clearly identify their area and distinguish their operations from the bank or credit union to avoid customer confusion.
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