Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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An agent cannot tell a client that a mutual fund is “no load” if the fund has
I. a front-end load
II. a contingent deferred sales load
III. 12b-1 fees
  1. I, II or III
  2. I or II only
  3. I only
  4. I or III only
Explanation
Answer: B - If a fund has either Selection I or Selection II, an agent cannot tell a client it is “no load.” If the fund has either a front-end load, a contingent deferred sales load, or both, the client must be told that the fund has a load. If the 12b-1 fees on a fund are 0.25% or less of the annual average net assets, it is not considered to be a load fund.
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