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FINRA Series 6 Investment Company and Variable Contracts Products Representative Exam

2. Opens accounts / Account information and KYC: practice questions

Our FINRA Series 6 bank has 20 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 Regulation S-P, how often must a firm generally give customers a privacy notice during the relationship?

  1. Every month
  2. Every five years
  3. At least once every 12 months
  4. Only at account closing
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C. At least once every 12 months — 17 CFR 248.5: not less than annually, meaning at least once in any 12 consecutive months, subject to limited exceptions.

Question 2

Before a firm shares a consumer's nonpublic personal information with a nonaffiliated third party, Regulation S-P generally requires:

  1. The consumer's notarized consent
  2. FINRA's approval
  3. Nothing, if the third party is a trusted vendor
  4. Notice and a reasonable opportunity to opt out
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D. Notice and a reasonable opportunity to opt out — 17 CFR 248.10: the firm must give the initial notice and opt-out notice and a reasonable chance to opt out, and the consumer must not have opted out.

Question 3

Which is an "essential fact" under Rule 2090?

  1. Who has authority to act for the customer
  2. The customer's favourite sports team
  3. The customer's grocery spending
  4. The customer's opinion of the firm
Show the answer

A. Who has authority to act for the customer — Rule 2090.01: essential facts are those needed to service the account, follow special handling instructions, understand the authority of each person acting for the customer, and comply with laws and rules.

Question 4

What is a trusted contact person under Rule 4512?

  1. A co-owner who can trade the account
  2. The customer's attorney with power of attorney
  3. Someone 18+ the firm may contact about the account
  4. The beneficiary named on the account
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C. Someone 18+ the firm may contact about the account — Rule 4512(a)(1)(F) asks for a trusted contact age 18 or older who may be contacted about the account; the contact has no trading authority.

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