Series 7 Exam Question 322: Answer and Explanation

Question: 322

Charges for services performed by a broker-dealer (such as collection of money due for principal, interest, or dividends; transfer or exchange of securities; safekeeping of securities; and so on) should be

• A. considered part of the broker-dealer's business and not charged
• B. charged at a maximum rate of 1½ percent of the customer's portfolio
• C. charged at a maximum rate of 5 percent of the securities being held, transferred, and so on
• D. fair and reasonable

Correct Answer: D

Explanation:

D. According to FINRA, charges for services provided by broker-dealers (transfers, collection of monies, safe-keeping of securities, and so on) shall be "reasonable and not unfairly discriminatory among customers."