Prohibited Activities

Question 1

What groups is FINRA worried about with financial exploitation

Answer 1

65 up
18 up where the member reasonably believes they have a mental or physical problem that prevents them from protecting their own interests

Question 2

What are the two things done to help prevent fin exploi of impacted accs

Answer 2

reasonable effort to obtain contact info for a trusted person
temp holds on disbursements if exploi is believed

Question 3

Is simply asking a client for a trusted persons info considered a reasonable effort

Answer 3

yes

Question 4

What is required after obtainiing a trusted person from a client

Answer 4

disclosure in writing that the firm may contact them about your acc

Question 5

Is a firm required to place a hold if fin exploi is suspectecd

Answer 5

no its at the firms discretion

Question 6

How long can a hold be in place for suspected fin exploi

Answer 6

15 days

Question 7

What is required after placing a hold for sus fin exploi

Answer 7

contact trusted persons or any other auth persons with in 2 days
unless the trusted person is the sus

Question 8

What are the five types of lending arrangements allowed between RRs and customer accs

Answer 8

immediate fam relationship between them
cust is in the bus of lending
cust and RR are both RRs of the same firm
cust and RR have a personal relationship outside of the firm
cust and RR have a bus relationship outside of the firm

Question 9

Of the 5 allowed lending arrangements, which require firm approval and which req no approval

Answer 9

immediate fam and cust in the business of lending require no approval

Question 10

Can we guarentee gains or no losses

Answer 10

no

Question 11

Can a RR share in the profits and losses of an account

Answer 11

no
except if a joint account, with firm approval, and only proportionate to amount invested

Question 12

Can an RRs contribution to a approved joint account with a cust be anything other than dollars

Answer 12

no

Question 13

What if the RR is an immediate fam in a profit sharing joint acc

Answer 13

then contribution can be other things like knowledge

Question 14

Who constitutes an immediate fam member for profit sharing joint accs

Answer 14

nuclear
in laws
parents
anyone living in the same residence

Question 15

A non registered person is allowed to

Answer 15

handle money and secs, but must be fingerprinted