SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 23: Answer and Explanation

Question: 23

Which of the following correctly describes the situation of FINRA's discipline of registered representatives regarding a customer's signatures under FINRA Rule 2010?

• A. The registered representative had a client sign a form that was not completed, which the representative completed later, without knowledge and approval of a registered principal.
• B. The registered representative had a client sign a form that was not completed, which the representative completed more than one year later.
• C. The registered representative had a client sign a form that was not completed, which the representative completed later, resulting in a trade that lost money for the customer.
• D. The registered representative had a client sign a form that was not completed, which the representative completed later.

Correct Answer: D

Explanation:

D: Choice D reflects the FINRA's discipline of registered representatives regarding a customer's signatures under FINRA Rule 2010, without any additional consideration. Choices A, B, and C mention additional conditions. If those conditions had not been present, the use of incomplete forms signed in advance by a customer would still be a disciplinary offense.