SIE practice questionhardProhibited Activities
A registered representative shares profits with a customer in a joint account without firm approval. What rule is violated?
- AInvestment Company Act of 1940
- BRegulation D
- CSEC Rule 144
- DFINRA rules on sharing in profits and losses✓ Correct answer
Explanation
Why D — FINRA rules on sharing in profits and losses
Sharing profits requires firm approval and proportional investment under FINRA rules. Regulation D, SEC Rule 144, and the Investment Company Act are not about profit-sharing.
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