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SIE practice questionmediumSharing in Accounts

Under FINRA rules, a registered representative may share in the profits and losses of a customer's account only if:

  1. ASharing in accounts is always prohibited with no exceptions
  2. BThe representative has written permission from the firm, the customer consents in writing, and sharing is proportional to the representative's financial contribution✓ Correct answer
  3. CThe customer gives verbal permission
  4. DThe representative has been in the industry for at least 10 years
Explanation

Why B — The representative has written permission from the firm, the customer consents in writing, and sharing is proportional to the representative's financial contribution

FINRA Rule 2150 generally prohibits sharing in customer accounts but allows it under strict conditions: (1) the representative must have prior written authorization from their firm, (2) the customer must consent in writing, and (3) sharing must be in proportion to the representative's financial contribution to the account. An exception exists for immediate family members, where the proportional contribution requirement may be waived with firm approval.

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