Series 7 practice questionmediumReferral Programs — Compensation Limits
A broker-dealer wants to reward an unregistered bank employee for referring clients. What is the maximum value of a non-cash gift that can be given annually without violating FINRA rules?
- A$200
- B$50
- C$0—no gifts are permitted
- D$100✓ Correct answer
Explanation
Why D — $100
FINRA rules allow non-cash gifts with a value up to $100 per individual per year to persons not registered with a broker-dealer.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 758+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Seeks Business for the Broker-Dealer questions
- A registered rep participates in a networking arrangement at a bank. If the rep receives compensation for referrals,…
- A broker-dealer rents space in a credit union to offer investment services. What must the broker-dealer do at its…
- A registered person refers a client to another department within the same broker-dealer and is to receive a referral…
- A brokerage firm wants to implement a referral program. Which individual may legally receive a referral fee under FINRA…
- In a networking arrangement between a bank and a broker-dealer, which statement about dual employees is accurate?
- A broker-dealer conducts business on the premises of a bank through a networking arrangement. What must be disclosed to…
- A broker-dealer wants to compensate a third-party firm for client referrals. What documentation is required to comply…
- A registered representative wishes to compensate a non-registered individual for referring a high-net-worth client to…