Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Customer Accounts & Suitability 3

Question 1

Before a mutual fund can be sold to a customer, regulations require that the customer receive or have access to which document?

Accepted Answer

The fund's prospectus

Answer

SEC rules require that customers receive the fund's prospectus, which contains the information material to an investment decision, before or at the time of sale.

Question 2

A trade confirmation sent to a customer after a mutual fund purchase must include all of the following EXCEPT:

Accepted Answer

The fund's five-year performance history

Answer

Trade confirmations must include transaction date, price, shares, and costs such as sales loads, but historical performance data is not a required element of a confirmation.

Question 3

Which FINRA rule governs communications with the public and requires that all communications be fair, balanced, and not misleading?

Accepted Answer

FINRA Rule 2210

Answer

FINRA Rule 2210 governs communications with the public and establishes standards requiring that all member communications be fair, balanced, and not misleading.

Question 4

Before a new retail communication (such as an advertisement) is used by a registered representative, who must typically approve it?

Accepted Answer

A registered principal of the broker-dealer

Answer

FINRA Rule 2210 requires that retail communications be approved by a registered principal of the member firm prior to first use.

Question 5

Which of the following statements about social media use by registered representatives is TRUE under FINRA rules?

Accepted Answer

Static social media content is treated as retail communication subject to principal pre-approval

Answer

FINRA classifies static social media content (such as a profile page or posted content that does not change) as retail communication, requiring principal pre-approval.

Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Practice Test

Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Practice Test

Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Customer Accounts & Suitability 3