SIE practice questionmediumAccount Types: Trust and Fiduciary Accounts
A trust account is established at a broker-dealer. Who has trading authority in this account?
- AFINRA
- BThe beneficiary
- CThe designated trustee✓ Correct answer
- DAll beneficiaries jointly
Explanation
Why C — The designated trustee
The trustee holds trading and management authority. Beneficiaries do not unless named. FINRA does not manage accounts. D is incorrect—beneficiaries do not act collectively.
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