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Question (Relevant to the Series 6, Series 7, Series 24, Series 26, and Series 99):
Under FINRA Rule 2830, an associated person may accept which of the following gifts from a mutual fund distributor?
Answers:
A. Reimbursement for out-of-pocket expenses incurred by the associated person and his spouse in attending an educational conference
B. Occasional meals and NFL tickets tied to a stated annual sales quota
C. A crisp new $100 bill delivered once every year on Christmas eve
D. None of the choices listed
Correct Answer: D.
Rationale: Rule 2830 prohibits all of these gifts from a mutual fund distributor to an associated person; specifically, any cash compensation (unless described in a current prospectus of the investment company), meals and tickets tied to a sales target, and reimbursement for meeting expenses incurred by anyone other than the associated person.
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