Finra Exam Series-6 Topic 5 Question 84 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 84
Topic #: 5

Joan is a customer of GetErDone Broker-Dealers. Her twin sister, Jean, has accompanied her to GetErDone's office and has gathered some information regarding opening an account with the firm, giving it her contact information at the same time.

Under Regulation S-P, which of the following statements regarding GetErDone's handling of Joan's and Jean's personal information is true?

AGetErDone must provide Joan with a notification of its privacy policies annually and provide her with information on how to mandate that it not share her nonpublic personal information with nonaffiliated third parties.

BGetErDone can disclose any information that Jean provided them to nonaffiliated third parties since Jean is not a customer of the broker-dealer.

CGetErDone is required to have provided Jean with a copy of its privacy policy when she inquired about opening an account with the broker-dealer.

DAll of the above are true statements.

Show Suggested Answer

Suggested Answer: A

Since Joan is a customer of GetErDone, GetErDone must provide her with a notification of its privacy policies annually and provide her with information on how to mandate that it not share her nonpublic personal information with nonaffiliated third parties. GetErDone may not disclose any information about Jean, who is not yet a customer of the firm, unless the broker -dealer has provided Jean with its privacy policy and given her the opportunity to opt out of its ability to share her information with nonaffiliated third parties. GetErDone is not required to have provided Jean with a copy of its privacy policy when she inquired about opening an account, but it will need to provide her with one when/if she becomes a customer.

by Marg at Aug 03, 2024, 06:25 AM

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Carmelina

3 months ago

You're right, I see your point now. C does make more sense.

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Davida

3 months ago

But doesn't Regulation S-P require the broker-dealer to provide the privacy policy to the individual when they inquire about opening an account?

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Carmelina

4 months ago

I disagree, I believe the correct answer is C.

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4 months ago

Haha, 'GetErDone' - what a great name for a broker-dealer! But in all seriousness, I think C is the right choice here.

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Mona

3 months ago

Yeah, I think so too. It's important for them to be transparent about how they handle personal information.

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Truman

3 months ago

I agree, C seems like the correct choice. They should have provided Jean with a copy of their privacy policy.

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4 months ago

Option C seems like the correct answer here. GetErDone is required to provide the privacy policy when someone inquires about opening an account, not just to the actual account holder.

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Jerry

3 months ago

Definitely, it's crucial for customers to have control over their personal information and know how it's being used.

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Azzie

3 months ago

A) GetErDone must provide Joan with a notification of its privacy policies annually and provide her with information on how to mandate that it not share her nonpublic personal information with nonaffiliated third parties.

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Leanora

3 months ago

That makes sense. It's important for both potential customers and actual customers to be informed about privacy policies.

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Queen

4 months ago

C) GetErDone is required to have provided Jean with a copy of its privacy policy when she inquired about opening an account with the broker-dealer.

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