Series 7 practice questioneasyProspecting and Cold Calling 1
A referral fee for opening brokerage accounts may generally be paid only to:
- Aany existing customer who refers a friend
- Banother appropriately registered person✓ Correct answer
- Can unregistered branch administrator
- Da CPA who is not associated with the firm
Explanation
Why B — another appropriately registered person
Transaction-based compensation may generally be paid only to properly registered persons. Paying securities-related referral compensation to unregistered persons can violate registration rules.
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