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FINRA Series 6 Investment Company and Variable Contracts Products Representative Exam

1. Seeks business / Communications: practice questions

Our FINRA Series 6 bank has 39 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Under FINRA Rule 2210(d)(5), retail communications showing non-money market fund performance must also disclose:

  1. The portfolio manager's salary
  2. The fund's trading volume
  3. Only the fund's best five-year return
  4. Standardized performance and expenses
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D. Standardized performance and expenses — Rule 2210(d)(5)(A) requires standardized performance and fee and expense disclosure.

Question 2

Which statement about correspondence is correct?

  1. It must always be approved by a principal before sending
  2. It must be filed with FINRA within 10 days
  3. It is supervised and reviewed under Rule 3110
  4. It is not subject to any content standards
Show the answer

C. It is supervised and reviewed under Rule 3110 — Rule 2210(b)(2): correspondence is subject to the supervision and review requirements of Rule 3110; content standards still apply.

Question 3

Under Rule 2212, a fund ranking used in a retail communication must disclose:

  1. Only the fund's rank number
  2. Category, number of funds, ranking entity, period
  3. The name of the portfolio manager only
  4. The fund's sales charge only
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B. Category, number of funds, ranking entity, period — Rule 2212(c)(2) requires the category name, number of funds, ranking entity, period and ranking criteria.

Question 4

Rule 2210 generally prohibits projecting performance. Which of these is a permitted exception?

  1. A hypothetical illustration of math principles
  2. A forecast of next year's fund return
  3. A statement that past results will repeat
  4. A projection of a specific fund's share price next year
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A. A hypothetical illustration of math principles — Hypothetical illustrations of mathematical principles that do not project an investment's performance, and investment analysis tools under Rule 2214, are permitted.

Question 5

In an illustration comparing tax-deferred and taxable compounding, the assumed gross rate of return may not exceed:

  1. 6 percent a year
  2. 15 percent a year
  3. The fund's best historical year
  4. 10 percent a year
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D. 10 percent a year — Rule 2210(d)(4)(C)(i): identical amounts and identical assumed rates, which may not exceed 10 percent per annum.

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