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FINRA Series 6 Investment Company and Variable Contracts Products Representative Exam

1. Seeks business / Conduct and compensation: practice questions

Our FINRA Series 6 bank has 14 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Under Rule 2341(k), may a firm favor selling a fund family because that family directs portfolio brokerage to the firm?

  1. Yes, if disclosed in the prospectus
  2. No; this is prohibited
  3. Yes, if the commissions are small
  4. Yes, if approved by the fund's board
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B. No; this is prohibited — Rule 2341(k)(1) prohibits favoring or disfavoring sales of a fund based on brokerage commissions received.

Question 2

A representative sends a customary wedding gift to a client's employee, paid for personally because of a long friendship. Under Rule 3220.04 this is:

  1. A personal gift outside the $300 limit
  2. Always counted toward the $300 annual limit
  3. Prohibited outright
  4. Allowed only up to $100
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A. A personal gift outside the $300 limit — Personal gifts for infrequent life events that are customary, reasonable and not related to the employer's business are outside the limit and recordkeeping.

Question 3

Which transaction is excluded from Rule 3280's definition of a private securities transaction?

  1. Selling a private placement for a fee
  2. Raising money for an unregistered offering
  3. Personal purchases of mutual fund shares
  4. Selling a friend's limited partnership units for a commission
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C. Personal purchases of mutual fund shares — Rule 3280(e)(1) excludes personal transactions in investment company and variable annuity securities, among others.

Question 4

Under amended Rule 3220, which gift is outside the rule entirely?

  1. A gift to an employee of an institutional client
  2. A gift to an individual retail customer
  3. A gift card to a bank's trust officer
  4. Concert tickets to a pension fund manager
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B. A gift to an individual retail customer — Rule 3220.09: the rule does not apply to gifts to a member's own associated persons or to individual retail customers.

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