Series 66: Exercise

Taken from our Series 66 Online Guide

Exercise

Choose whether the following are Allowed or Not allowed

  1. 1. _____ Client funds and broker-dealer funds are held in the same account.
  2. 2. _____ Client funds are audited by an independent accountant on a scheduled date at least once a year.
  3. 3. _____ Clients receive account statements every three months.
  4. 4. _____ A broker-dealer receives written consent and then hypothecates a client’s securities.

Answers

  1. 1. Not allowed. Commingling of funds is a violation of custody rules.
  2. 2. Not allowed. Although an annual audit by a third pa

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