SIE practice questionmediumFiduciary Accounts
A trust account at a brokerage firm is managed by a:
- ARegistered representative chosen by the broker-dealer
- BTrustee as specified in the trust document✓ Correct answer
- CFINRA-appointed administrator
- DThe beneficiary of the trust
Explanation
Why B — Trustee as specified in the trust document
A trust account is managed by the trustee named in the trust document. The trustee has a fiduciary duty to manage the assets in the best interest of the trust's beneficiaries according to the terms of the trust. The trustee must provide a copy of the trust document or a certification of trust to the broker-dealer. The beneficiary (D) does not manage the account unless also named as trustee.
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