Question

If a registered representative of a FINRA member firm wants to open an account with another member firm, which of the following statements are TRUE?

I.The account may only be opened if the registered representative (RR) is also a principal of his employing BD.
II.The account may be opened, but the registered representative may not engage in securities transactions that he could do through his own firm.
III.The member firm opening the account must send duplicate confirmations to the employing member firm if the employing member firm has requested them to do so.
IV.The employing broker/dealer must receive prior written notice in order for the account to be opened but need not grant prior approval.

A) I and II
B) I and III
C) III and IV
D) II and IV

Answer 1

The answer is: C) III and IV

Step-by-step explanation:

The Financial Industry Regulatory Authority (FINRA) regulates member brokerage firms and exchange markets. FINRA is regulated and overseen by the SEC. They issue licences to individuals and admits companies into the financial trading industry.

If a former employee of a FINRA firm wants to work for another FINRA firm, he must notify his former employee and his new employer must send duplicate confirmations only if requested by the former employer.