A:

a. Never
b. When he or she has written approval from the firm



c. When he or she has written approval from the firm AND contributes equally to the account and shares equally in any losses that arise



d. Only if the agent's contributions to the account are two times GREATER than those of the client



Answer: C



It is considered fraudulent to commingle funds in an account, unless:
• Written authorization by the firm grants such.
• An agent contributes equally (monetarily) to the account.



RELATED FAQS
  1. When do you invest in a commingled fund vs. separate account?

    Explore situations when a commingled fund is a more suitable investment vehicle than a separate account. Read Answer >>
  2. Can I make a contribution to my Roth IRA before I get paid quarterly?

  3. My son's income has reached the level to prevent Roth IRA Contributions. Can Buy/Sell ...

  4. How can I tell when a real estate agent might be lying to me?

    Find out what real estate agents are likely to lie about, the reasons for the lies and how to protect yourself from unscrupulous ... Read Answer >>
  5. Under the Uniform Securities Act, client information may not be disclosed to a third ...

    The correct answer is c. No authorization is needed from the client’s wife since it is a joint account. Also none is needed ... Read Answer >>
  6. Excessive trading is:

    A. acceptable if the client is young enough to recover from any losses before retiring.B. acceptable if the firm mandates ... Read Answer >>
Related Articles
  1. Managing Wealth

    The Pro’s Guide to Selling Life Insurance to Your Clients

    Learn about the distinguishing characteristics a life insurance agent needs to be successful in the highly competitive life insurance industry.
  2. Personal Finance

    Finding A Good Real Estate Agent

    Don't go it alone in the real estate market. We'll show you how to find the help you need.
  3. Retirement

    Buying A Home: Find An Agent

    By Amy FontinelleIf you want to buy a home, you'll need to get an agent. The most basic reason to get an agent is that you won't be able to see homes without one. (To learn more, readDo You Need ...
  4. Financial Advisor

    A Day In The Life Of A Real Estate Agent

    While every day is unique for a real estate agent, there are some activities that may be a typical part of an agent's day.
  5. Retirement

    401(k) Contribution Limits in 2016

    Find out what the contribution limits are for 401(k) retirement savings plans in 2016, including individual, employer and aggregate limits.
  6. Professionals

    Would You Make A Good Real Estate Broker?

    How to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
  7. Retirement

    It’s Never Too Late to Contribute to Your 401(k)

    Find out why it is never the wrong time to start contributing to a 401(k), even in your late 30s, 40s or 50s; discover how to maximize your savings at any age.
  8. Personal Finance

    529 Plan Contribution Limits in 2016

    Learn about the contribution and account balance limits on 529 plan accounts and discover how these contribution limits differ in each state.
  9. ETFs & Mutual Funds

    What Does a Transfer Agent Do?

    Transfer agents maintain the records and documents related to shareholder accounts.
  10. Retirement

    Why are 401(k) contributions limited?

    Find out why contributions to 401(k) retirement plans are limited, including what the current contribution limits are and how limits encourage participation.
RELATED TERMS
  1. Commingled Fund

    A fund consisting of assets from several accounts that are blended ...
  2. Full Trading Authorization

    A level of trading authorization that grants an agent or broker the ...
  3. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
  4. Commingling (Commingled)

    1. In securities, it is the mixing of customer-owned securities ...
  5. Limited Trading Authorization

    A level of trading authorization that gives an agent or broker the ...
  6. Commingled Trust Fund

    Investment assets that are combined together under a common investment ...
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center