Business PracticesCâu 82 / 100
An investment adviser proposes to act as broker for a client on one side of a trade while representing the counterparty on the other. This agency cross transaction:
a.Is flatly prohibited in every circumstance
b.Requires disclosure of the adviser's role and the conflicts involved, and the client's consent, with the adviser never having recommended the trade to both parties
c.Requires only that commissions be reasonable
d.Requires approval from the Administrator before each trade
Giải thích
An agency cross transaction is permitted only with disclosure of the capacity in which the adviser acts, the compensation it will receive, and the conflict inherent in serving both sides, together with the client's consent and periodic reporting. The adviser may not have recommended the transaction to both the buyer and the seller. Reasonable commissions alone do not satisfy the rule, and there is no requirement of trade-by-trade approval by the Administrator.
Trích dẫn luật: NASAA Model RuleLuyện miễn phí toàn bộ 100 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A state-registered investment adviser takes custody of client securities. Under the NASAA custody rule, the adviser generally must:
- An investment adviser wants to charge a fee based on a share of the capital gains in a client's account. Under NASAA rules, such a performance-based fee is:
- An investment adviser directs client brokerage to a firm that provides research reports and also pays the adviser's office rent. Regarding these soft dollar arrangements, the adviser:
- An investment adviser pays an accountant a fee for every client the accountant refers. Under NASAA rules, this arrangement requires that:
- An agent's friend asks about the holdings and balance in a mutual acquaintance's brokerage account. The agent should:
- A client loses money on a trade the agent recommended. To keep the client from complaining, the agent quietly writes a personal check covering the loss and tells no one at the firm. The agent has:
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