Which of the following, under the NASD Conduct Rules, would constitute a complaint?
I. An angry telephone call from a customer to a registered
representative’s (RR) supervising principal, complaining about
the RR’s attitude.
II. A letter, written by a client’s attorney, to the compliance
office of a broker-dealer, which alleges impropriety in the
handling of the client’s discretionary account.
III. A telephone call to a principal in a broker-dealer firm, from
a principal in another firm, alleging that one of the firm’s
RRs has been “stealing” customers.
IV. A hand-written note, sent to a RR, by a customer who is
unhappy with the recommendations and performance of the RR.
a) I, II, III, IV
b) II, IV
c) I, III
d) II, III, IV
The correct answer is b.
The NASD defines a “complaint” as adverse communications that are in writing. Choices I and III are matters that the appropriate principal would look into, but they are not technically complaints.
The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ...
The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
I. Moral suasionII. Changing the discount rateIII. Changing the reserve requirementIV. Changing the prime interest rate A. ...
The correct answer is d) Hedge funds are extremely aggressive entities that engage in margin and short-selling. They are ...
The correct answer is: d) Choice II is incorrect because the longer the investment horizon, the less emphasis must be placed ...
The correct answer is a. Fixed annuities are not considered securities, since the purchaser bears no investment risk. However, ...
A trading service consisting of everything in Level 2, plus the ...
The NASD was a self-regulatory organization of the securities ...
A ruling passed by the National Association of Dealers (NASD), ...
A person who works for a brokerage company that is licensed by ...
A program developed by the National Association of Securities ...
A comprehensive set of reform measures designed to improve the ...