Finra Exam Series-6 Topic 1 Question 82 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 82
Topic #: 1

Chandler is a registered representative with GetErDone Broker-Dealers, a FINRA member-firm. His friend, Phoebe, is employed by FlyByNight Investments, which is not a member of FINRA, or any other securities association for that matter. Given these facts:

AIf Chandler executes any transactions for Phoebe, he is required to charge her the same commission that he charges any member of the general public.

BChandler is prohibited from engaging in any financial transactions with Phoebe.

CChandler is prohibited from splitting any commissions with Phoebe.

DBoth A and C are true.

Show Suggested Answer

Suggested Answer: D

Given that Chandler is a representative with a member firm while Phoebe's employer is not a member of any known securities association, he is required to charge Phoebe the same commission that he charges any member of the general public when executing a transaction for her and is prohibited from splitting commissions with her. He is not prohibited from engaging in any financial transactions with her; he simply must do so ''for the same commissions or fees, and on the same terms and conditions as are. . .accorded to the general public,'' according to FINRA.

by Jesse at Jul 06, 2024, 07:18 PM

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Beatriz

4 months ago

Ah, the joys of financial regulation. Chandler's gotta keep his work and personal life completely separate when it comes to Phoebe. No special deals, no commission splitting - it's all about maintaining those boundaries.

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Albina

3 months ago

C) Chandler is prohibited from splitting any commissions with Phoebe.

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Dortha

3 months ago

A) If Chandler executes any transactions for Phoebe, he is required to charge her the same commission that he charges any member of the general public.

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Selma

4 months ago

This is a no-brainer! Chandler can't do any favors for Phoebe, even if she's his friend. That's just the way it is when you're a registered rep. I bet Ross would know all the details on this one.

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Annelle

4 months ago

Hmm, I think the answer is D. Chandler can't give Phoebe any special deals, and he also can't split commissions with her. Gotta play by the rules, you know? Otherwise, the regulators might come knocking.

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Stephania

4 months ago

Woah, this is tricky stuff! Chandler's gotta be careful with Phoebe, that's for sure. I wonder if he can even talk to her about his work at all? This FINRA thing sounds like a real headache.

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Dewitt

4 months ago

Chandler can't engage in financial transactions with Phoebe.

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Anisha

4 months ago

Chandler has to charge Phoebe the same commission as the general public.

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Emeline

4 months ago

Chandler can't split commissions with Phoebe.

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Tamala

4 months ago

Yes, that's correct. So the answer should be D, both A and C are true.

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Lili

4 months ago

But isn't Chandler also prohibited from splitting commissions with Phoebe?

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Taryn

5 months ago

Okay, let's see... Chandler can't do any deals with Phoebe since she's not a FINRA member. That's a big no-no! But can he at least share the commissions? I'm not too sure about that one.

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Sang

3 months ago

Yeah, Chandler can't split commissions with Phoebe. It's against the rules.

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Ammie

3 months ago

C) Chandler is prohibited from splitting any commissions with Phoebe.

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Maryrose

3 months ago

A) If Chandler executes any transactions for Phoebe, he is required to charge her the same commission that he charges any member of the general public.

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Joanne

3 months ago

Yeah, Chandler can't split commissions with Phoebe. It's against the rules.

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Karol

3 months ago

C) Chandler is prohibited from splitting any commissions with Phoebe.

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Ozell

3 months ago

Yeah, it's important to follow the rules when it comes to financial transactions.

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Portia

3 months ago

Hmm, so Chandler can't split commissions with Phoebe. Good to know!

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Hayley

3 months ago

A) If Chandler executes any transactions for Phoebe, he is required to charge her the same commission that he charges any member of the general public.

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Wenona

4 months ago

C) Chandler is prohibited from splitting any commissions with Phoebe.

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Viva

4 months ago

A) If Chandler executes any transactions for Phoebe, he is required to charge her the same commission that he charges any member of the general public.

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Darrin

5 months ago

I agree with Rolland, because Chandler should charge Phoebe the same commission as the general public.

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Rolland

5 months ago

I think the answer is D.

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