Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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Don is a state-registered agent with GetErDone Broker-Dealers. He has three other friends who are licensed agents-Huey, Dewey, and Louie. Huey is also an agent with GetErDone Broker-Dealers. Dewey is an agent with a different firm in the same city, CanDo Broker-
Dealers. Louie works for a Broker-Dealer with an office just across the state line. Don can enter a commission-splitting agreement with
  1. Huey only.
  2. either Huey or Dewey or both
  3. Dewey only.
  4. Either Huey, Dewey, or Louie or any combination of the three
Explanation
Answer: A - Don can enter a commission-splitting agreement with Huey only since he is the only one who is also working for GetErDone Broker-Dealers. It is considered unethical to split “commissions, profits or other compensation. . .with any person not also registered as an agent for the same broker-dealer,” under NASAA Model Rules.
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