Series 10 Exam Question 2: Answer and Explanation

Question: 2

As it relates to influencing the employees of member firms, which of the following are true?

I. The gift may be given to the employee.

II. A record of the gift must be maintained by the employing firm.

III. The gift must be given to the employer for distribution.

IV. A contractual relationship is excluded from the rule.

• A. I and IV
• B. II and III
• C. II, III, and IV
• D. I, II, and IV

Correct Answer: C

Explanation:

All gifts given to the employee of another member firm must be given to the member for distribution to the employee, and a record must be kept of the gift. Contractual relationships, for an employee, to provide services to another member firm are excluded from the rules regarding influencing another member's employees.