SIE practice questionmediumReg BI - Form CRS
Under SEC Regulation Best Interest, broker-dealers must provide retail customers with Form CRS (Customer Relationship Summary). This form must be delivered:
- AOnly when the customer opens a margin account
- BAnnually by January 31
- CAt the time of the recommendation and at account opening, whichever comes first✓ Correct answer
- DOnly upon customer request
Explanation
Why C — At the time of the recommendation and at account opening, whichever comes first
Form CRS must be delivered to retail investors before or at the earliest of: a recommendation of a securities transaction or investment strategy, placing an order for the customer, or account opening. The form is a brief (2-page) document that describes the firm's services, fees, conflicts of interest, disciplinary history, and how to get more information. It helps retail customers understand what they are getting and compare services across firms.
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.
Related Customer Accounts & Suitability questions
- A registered representative who places trades that are most advantageous to the client is upholding which standard?
- Under FINRA Rule 4512, broker-dealers must make reasonable efforts to obtain the name of a trusted contact person when…
- A registered representative must always act in the:
- Under SEC Regulation Best Interest (Reg BI), a broker-dealer must act in the best interest of the retail customer when…