A registered rep wants to pay a $500 referral fee to a friend for introducing three prospects. Which of the following conditions must be met for this payment to comply with FINRA rules?

1. AThe friend must be registered with a FINRA member firm
2. BThe rep can pay the fee if it is under $1,000 per referral per year
3. CThe registered rep must obtain prior written approval from the firm and disclose the arrangement to the customer✓ Correct answer
4. DThe payment can be made if the friend is not involved in the transaction beyond the initial introduction

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.

• A registered representative hosts a public seminar and distributes approved sales literature and business cards.…
• A broker-dealer's registered rep plans to use both personal and firm-approved social media accounts for prospecting.…
• A registered representative is prospecting a high-net-worth individual who expresses strong interest in municipal bonds…
• A registered representative is preparing a cold calling campaign. She obtains a purchased list with 1,200 names, 100 of…
• During what hours (in the recipient’s local time) may a registered representative make unsolicited telemarketing calls…
• A representative obtains a list of potential prospects from a third-party data vendor. Which regulatory requirement…
• Which of the following pieces of information must be provided at the beginning of every cold call?
• A representative wants to include a testimonial from a satisfied client in a marketing brochure. Which statement…