Series 65: Exercise

Taken from our Series 65 Online Guide

Exercise

Choose proper or improper.

1. _____ Client funds and broker-dealer funds are held in the same account.

2. _____ Client funds are audited by an independent accountant on a scheduled date at least once a year.

3. _____ Clients receive account statements every three months.

4. _____ A broker-dealer receives written consent and then hypothecates a client’s securities.

Answers

1. Improper. Commingling of funds is a violation of custody rules.

2. Improper. Altho

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