Series 79 practice questionmediumFINRA Rules Applicable to Investment Banking
Under FINRA Rule 5110, what type of compensation must be disclosed and subject to limitations when participating in a public offering?
- AOffering-related underwriting compensation, including securities✓ Correct answer
- BOnly cash underwriting fees
- CTravel expenses under $5,000 per trip
- DPrincipal payments received from unrelated debt transactions
Explanation
Why A — Offering-related underwriting compensation, including securities
Rule 5110 captures cash and non-cash underwriting compensation, but excludes specified items such as reimbursement of accountable expenses. The old 'any item' formulation was overbroad.
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