Question

A close friend of an MFP is running for election as treasurer in the MFP's city. If the MFP contributes $450 to his friend's election campaign, for how long is the MFP's broker-dealer restricted from engaging in negotiated underwritings with the city?

A. Two years
B. Three years
C. Five years
D. There is no restriction

Answer 1

If the MFP contributes $450 to his friend's election campaign, the MFP's broker-dealer is restricted from engaging in negotiated underwritings with the city for 2 years.

Step-by-step explanation:

According to McCain-Feingold campaign finance law, if the MFP (Member of Financial Planning Association) contributes $450 to his friend's election campaign for treasurer in the city, the MFP's broker-dealer will be restricted from engaging in negotiated underwritings with the city for

1. Two years
2. Three years
3. Five years
4. There is no restriction

The correct answer is Two years. The restriction is in place to prevent conflicts of interest and ensure fair financial practices.