SIE practice questioneasyTrusted Contact Person
Under FINRA Rule 4512, broker-dealers must make reasonable efforts to obtain the name of a trusted contact person when opening a customer account. What is the trusted contact person used for?
- ATo be contacted in cases of suspected financial exploitation, health concerns, or to confirm contact information✓ Correct answer
- BTo make investment decisions on behalf of the customer
- CTo receive duplicate copies of all account statements
- DTo serve as a co-signer on all account transactions
Explanation
Why A — To be contacted in cases of suspected financial exploitation, health concerns, or to confirm contact information
The trusted contact person is someone the firm can reach in limited circumstances, such as possible financial exploitation, contact-information confirmation, or concerns about the customer's health or mental capacity. The trusted contact is not authorized to trade, co-sign transactions, or automatically receive account statements.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Customer Accounts & Suitability questions
- Under SEC Regulation Best Interest, broker-dealers must provide retail customers with Form CRS (Customer Relationship…
- Under SEC Regulation Best Interest (Reg BI), a broker-dealer must act in the best interest of the retail customer when…
- A registered representative who places trades that are most advantageous to the client is upholding which standard?
- When opening a new brokerage account, which of the following is NOT typically required?
- A registered representative must always act in the:
- Which of the following is required BEFORE a registered representative can exercise discretion over a customer's account?
- A registered representative making a trade unsuitable for a client violates which duty?
- If a registered rep makes recommendations involving securities for which the firm is a market maker, what must be…