Trading, Accounts & Prohibited ActsQuestion 290 of 398
A representative deposits a customer's check into the representative's own personal bank account 'temporarily' before moving it to the brokerage account. This is an example of:
a.Improper commingling of customer funds with the representative's own funds
b.A permissible convenience
c.Best execution
d.A standard settlement practice
Explanation
Placing customer funds into a personal account, even briefly, improperly commingles customer money with the representative's own and violates rules protecting customer assets. Customer funds must be handled through proper firm channels.
Law Reference: FINRA Rule 2010Practice all 398 questions free — no signup required.
Related questions on this topic
- Under FINRA Rule 2210, 'correspondence' generally refers to a written communication distributed to how many retail investors within a 30-day period?
- Which statement about institutional communications is generally correct under FINRA rules?
- Generally, a withdrawal of earnings from a traditional IRA before age 59 1/2, without an exception, is subject to ordinary income tax plus an additional penalty of:
- A representative learns that a customer with an individual account has died. What is the appropriate immediate action?
- Two unrelated investors each want their portion of a joint account to pass to their own heirs, not to each other, upon death. Which registration should they choose?
- When gathering information to make suitable recommendations for a new customer, which of the following is LEAST relevant to the customer's investment profile?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review