SIE Exam Question 318: Answer and Explanation

Question: 318

Pursuant to Regulation S-P, a broker-dealer must provide a privacy notice to a customer

• A. when a confirmation of a trade is sent.
• B. at the time a solicitation is made to purchase a security.
• C. prior to engaging in any securities business with that customer.
• D. when a statement of account is sent.

Correct Answer: C

Explanation:

C - Under Regulation S-P, a privacy notice must be sent to a customer prior to entering into an agreement to engage in business with that client and annually thereafter.