Series 63: Exercise

Exercise

Answer true or false

1. 1. Keeping a client’s electronic data out of public view is a primary responsibility for all investment professionals.
2. 2. Under the SEC’s cybersecurity regulations, firms must periodically review databases used to store client information.
3. 3. FINRA guidelines require only a firm’s management to have defined roles and responsibilities as part of a cybersecurity plan.
4. 4. As long as reasonable policies and procedures to identify the red flags of identity theft are in place, a firm has satisfied its SEC requirement to maintain an identity theft program.

Answers

1. 1. True. Client confidentiality extends to data stored electronically and online. Therefore, its protection is a key responsibility for all investment professionals.