Series 7 practice questioneasyMarketing and Prospecting — Referral Fees
A registered representative may pay a referral fee to:
- ATo friends or family members who refer new clients
- BOnly to a registered person at their broker-dealer✓ Correct answer
- CTo any employee of the firm, registered or not
- DAny person, regardless of registration status
Explanation
Why B — Only to a registered person at their broker-dealer
Referral fees may only be paid to properly registered persons at the same broker-dealer to comply with FINRA rules.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- A registered representative plans to cold call prospective clients. Which of the following best describes a requirement…
- During which hours (in the customer's local time) may a registered representative make telephone solicitations under…
- A representative wants to use LinkedIn to reach out to potential clients. Which action requires prior principal…
- Who is typically responsible for approving retail advertising materials before use?