SIE Knowledge of Capital Markets Question 19: Answer and Explanation

Question: 19

Which of the following statements is true regarding FINRA Rule 2266 - SIPC Information?

• A. The members are required to inform investors in written form of the investor's ability to learn about SIPC, and obtain the SIPC brochure by contacting SIPC.
• B. The members are required to inform investors in written form, and give an oral explanation to each one, of the investor's ability to learn about SIPC, and obtain the SIPC brochure by contacting SIPC.
• C. The members are required to orally inform investors of the investor's ability to learn about SIPC, and obtain the SIPC brochure by contacting FINRA or the SEC.
• D. The members are required to inform investors in written form of their ability to learn about SIPC, and obtain the SIPC brochure by contacting FINRA in writing.

Correct Answer: A

Explanation:

A: Choice A is correct. The information must be provided in written form. It is not required to be provided orally. Oral notification is inadequate without the written form. The information may be obtained from the SIPC, not necessarily from FINRA or the SEC. Choices B, C, and D are incorrect.