Series 7 practice questioneasyReferral Compensation — Permitted Recipients
Who may receive compensation from a broker-dealer for referring a client, according to FINRA rules?
- AOnly the firm's CEO
- BUnregistered individuals if they do not discuss investments
- COnly registered representatives✓ Correct answer
- DAny individual, regardless of registration status
Explanation
Why C — Only registered representatives
Under FINRA rules, only registered representatives can be compensated for client referrals; unregistered individuals may not receive referral fees.
Turn it into reps
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