Finra Exam Series-6 Topic 2 Question 75 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 75
Topic #: 2

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 Whitney at Apr 20, 2024, 08:50 PM

Limited Time Offer

25%

8 months ago

Chandler, can you execute transactions for me at GetErDone Broker-Dealers?

upvoted 0 times

...