Series 7 practice questionmediumNetworking Arrangements — Dual Employees
In a networking arrangement between a bank and a broker-dealer, which statement about dual employees is accurate?
- ADual employees may offer deposit and securities products in the same conversation without restriction.
- BDual employees must clarify whether they are acting on behalf of the bank or the broker-dealer during each client interaction.✓ Correct answer
- CDual employees may offer only bank products.
- DDual employees are not permitted under any circumstances.
Explanation
Why B — Dual employees must clarify whether they are acting on behalf of the bank or the broker-dealer during each client interaction.
FINRA requires dual employees to clearly identify the capacity in which they are acting to avoid confusion between bank and securities business.
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