SIE Exam Question 380: Answer and Explanation

Question: 380

Under what conditions, if any, may an agent of a broker-dealer share in the profits and losses of a customer's account?

• A. only if the sharing is in direct proportion to the financial contribution made by the agent to the account
• B. under no circumstances
• C. only if it is a discretionary account
• D. only with permission from an SRO such as FINRA

Correct Answer: A

Explanation:

A: A customer can open a joint account with their registered rep. In that event, sharing in the performance of the account is permitted, in proportion to the contribution made by each party.