SIE practice questionhardFINRA Rules - Sharing in Profits
A registered representative shares in profits from a client’s account without prior written approval from the firm and the customer. This conduct is:
- ARequired for discretionary accounts
- BProhibited by FINRA rules✓ Correct answer
- CPermitted if the rep is a family member
- DAcceptable for high net worth clients only
Explanation
Why B — Prohibited by FINRA rules
FINRA prohibits sharing in profits without advance written consent from both the customer and the firm. Family relationships or client net worth do not create exceptions.
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