SIE practice questionmediumAccount Types
A registered rep recommends a complex options strategy to a minor's custodial account. Which rule does this most likely violate?
- ASuitability and account restrictions✓ Correct answer
- BMargin account requirements only
- CSEC reporting rules
- DRegulation S
Explanation
Why A — Suitability and account restrictions
Custodial (UGMA/UTMA) accounts have limitations; complex or risky strategies are generally unsuitable and may be prohibited. Margin and Reg S address other issues.
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