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.
Question 1
Under Regulation S-P, how often must a firm generally give customers a privacy notice during the relationship?
- Every month
- Every five years
- At least once every 12 months
- Only at account closing
Show the answer
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:
- The consumer's notarized consent
- FINRA's approval
- Nothing, if the third party is a trusted vendor
- Notice and a reasonable opportunity to opt out
Show the answer
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?
- Who has authority to act for the customer
- The customer's favourite sports team
- The customer's grocery spending
- 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?
- A co-owner who can trade the account
- The customer's attorney with power of attorney
- Someone 18+ the firm may contact about the account
- The beneficiary named on the account
Show the answer
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.
More FINRA Series 6 topics
- 1. Seeks business / Communications
- 1. Seeks business / Conduct and compensation
- 2. Opens accounts / Suitability and best interest
- 3. Products and recommendations / Investment company structure
- 3. Products and recommendations / Variable contracts
- 3. Products and recommendations / Disclosures and seniors
- 3. Products and recommendations / Statements and records
- 4. Orders and transactions / Complaints, disputes and conduct