Series 7 practice questionmediumSocial Media — Responding to Customer Inquiries
A client sends a direct message on a firm's approved social platform requesting investment advice. What should the representative do to ensure compliance?
- ARespond using any available messaging app.
- BRespond with personal opinions only.
- CIgnore the message since social media is not for business communications.
- DRespond only through firm-approved channels and ensure the message is retained.✓ Correct answer
Explanation
Why D — Respond only through firm-approved channels and ensure the message is retained.
Business-related communications, including investment advice, must occur through firm-approved channels and be appropriately archived.
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 representative posts a hyperlink to a third-party article about mutual funds on their firm's website.…
- A broker-dealer wants to launch a digital ad campaign targeting retail investors on a popular investment blog. What…
- A representative uses a firm-approved app to recommend a specific ETF to all clients on his contact list. Which…
- A registered representative wants to repost a client testimonial on her personal social media page. Which statement is…
- A registered representative uses a third-party messaging app to communicate with clients about potential investments.…
- A representative uses a personal smartphone to send investment recommendations to clients via text. Which statement…
- A broker posts a chart about municipal bond trends on their firm's Facebook page. Clients begin commenting, and the…
- A representative wants to tweet a market prediction suggesting a specific stock will outperform based on recent…