Regulations & ConductQuestion 117 of 125
Which of the following is a prohibited practice for a registered representative?
a.Recommending a diversified portfolio
b.Disclosing all material risks
c.Guaranteeing a customer against loss in a securities account
d.Filing accurate records
Explanation
It is prohibited to guarantee a customer against loss or to promise a specific investment result; investment returns cannot be assured. Other prohibited practices include churning, unauthorized trading, commingling customer funds with firm funds, and making unsuitable recommendations.
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Related questions on this topic
- A registered representative's communications with the public must be:
- Under anti-money laundering (AML) rules, a Currency Transaction Report (CTR) must generally be filed for cash transactions exceeding:
- A Suspicious Activity Report (SAR) is filed by a firm when:
- 'Churning' refers to:
- Commingling a customer's funds or securities with the firm's own assets is:
- The Securities Investor Protection Corporation (SIPC) protects customers by:
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