FINRA Securities Industry Essentials Exam (SIE) SIE Question # 6 Topic 1 Discussion
SIE Exam Topic 1 Question 6 Discussion:
Question #: 6
Topic #: 1
Which of the following statements best describes the permissibility of a borrowing arrangement between a registered representative (RR) and a customer who is also the RR ' s grandfather?
A.
It is permissible subject to FINRA approval.
B.
It is permissible if the grandfather agrees in writing.
C.
It is permissible if the loan was made on commercially reasonable terms.
D.
It is permissible provided that the loan was made in accordance with the firm ' s policies.
FINRA Rule 3240: Permits borrowing or lending arrangements between RRs and customers under specific conditions, including familial relationships, provided the arrangement complies with the firm’s policies.
Incorrect Options:
A: FINRA approval is not required; firm approval is.
B: A written agreement alone is insufficient without firm approval.
C: Commercially reasonable terms are not the sole criterion for permissibility.
FINRA Rule 3240 (Borrowing from or Lending to Customers): FINRA Rule 3240.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit