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FINRA Series 6 Investment Company and Variable Contracts Products Representative Exam

3. Products and recommendations / Disclosures and seniors: practice questions

Our FINRA Series 6 bank has 9 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Who may authorize a Rule 2165 temporary hold at a firm?

  1. A supervisory, compliance or legal person
  2. Any registered representative
  3. The customer's trusted contact
  4. A FINRA examiner
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A. A supervisory, compliance or legal person — Rule 2165(c)(2): procedures identify by title each person authorized, who must serve in a supervisory, compliance or legal capacity.

Question 2

A fund prospectus should be read before investing because it explains:

  1. Only the adviser's biography
  2. Its objectives, risks and fees
  3. Only past tax returns
  4. The broker's commission rate only
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B. Its objectives, risks and fees — Investor.gov urges investors to read the prospectus and shareholder report, which describe objectives, strategies, risks, fees and shareholder information.

Question 3

Under Rule 2165, a firm that places a temporary hold on a specified adult's disbursement must notify authorized parties and trusted contacts within:

  1. Two business days
  2. Ten business days
  3. 24 hours
  4. 30 calendar days
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A. Two business days — Rule 2165(b)(1)(B): notification not later than two business days after placing the hold, unless the party is suspected.

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