SIE Exam Question 491: Answer and Explanation

Question: 491

Which of the following is true?

• A. Broker dealers may not give gifts to the employees of other broker dealers.
• B. A representative may not obtain outside employment because of the potential conflict of interest.
• C. A client may not have a numbered account for his investment account.
• D. Representatives and broker dealers may not disclose any information regarding a client to a third party without the client's expressed consent or a court order.

Correct Answer: D

Explanation:

D: A client may have a numbered account if his signature as owner is on file; broker dealers may give gifts to the employees of other broker dealers with certain restrictions. To obtain outside employment, a representative must first obtain approval from the member firm where he works.