SIE practice questionmediumBreakpoints
A client is eligible for a breakpoint but is not informed by their representative. This is considered:
- AA violation of FINRA fair dealing rules✓ Correct answer
- BA standard business practice
- CA permissible omission if the client didn’t ask
- DA requirement only for institutional investors
Explanation
Why A — A violation of FINRA fair dealing rules
A is correct; representatives must disclose breakpoints to retail clients. B, C, and D are false—failure to disclose is a regulatory violation regardless of client type.
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