SIE Exam Question 305: Answer and Explanation

Question: 305

A registered representative located in California makes a 7:30pm cold call to a potential customer in New Jersey. This is

• A. permitted because the call occurred between the hours of 8am and 9pm.
• B. permitted as long as the registered rep had prior verbal consent from the potential customer.
• C. permitted as long as the potential customer is not on the do-not-call-list.
• D. prohibited because cold calls can only be made between 8am and 9pm in the potential customer's time zone.

Correct Answer: A

Explanation:

A - Cold calls can be made between 8am and 9pm in the customer's time zone. Although it is 7:30pm in California, it is actually 10:30pm in New Jersey because of the difference in time zones. Therefore, this call is prohibited.