SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 62: Answer and Explanation

Question: 62

Under FINRA 4512, what information must a member firm maintain for a customer who is a natural person who is only purchasing mutual funds of the customer's choice?

• A. Social Security number or tax identification
• B. Occupation and employer's name and address
• C. Whether the customer is a representative for another member firm
• D. An alternative contact

Correct Answer: D

Explanation:

D: Choice D is correct because FINRA 4512 does require an alternate contact for every customer who is a natural person. Choices A, B, and C are incorrect because these items are only expected if the customer is placing orders for investments besides their own selected mutual funds, and these items can be obtained by reasonable effort.