Series 7 practice questioneasyNetworking Arrangements — Definition
A networking arrangement typically refers to a relationship between a broker-dealer and which of the following?
- AA bank or other financial institution✓ Correct answer
- BA law firm
- CA real estate developer
- DA government agency
Explanation
Why A — A bank or other financial institution
A networking arrangement is a formal relationship between a broker-dealer and a financial institution, such as a bank, to offer securities products to the institution’s customers.
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Related Seeks Business for the Broker-Dealer questions
- When a broker-dealer operates within a bank branch under a networking arrangement, what must be disclosed to customers?
- Who may receive compensation from a broker-dealer for referring a client, according to FINRA rules?
- Which activity is NOT permitted for an unregistered bank employee in a broker-dealer networking arrangement?
- What is the primary purpose of a broker-dealer referral program?