Series 66: Exercise

Exercise

Choose whether the following are Allowed or Not allowed

1. 1. _____ Client funds and broker-dealer funds are held in the same account.
2. 2. _____ Client funds are audited by an independent accountant on a scheduled date at least once a year.
3. 3. _____ Clients receive account statements every three months.
4. 4. _____ A broker-dealer receives written consent and then hypothecates a client’s securities.

Answers

1. 1. Not allowed. Commingling of funds is a violation of custody rules.
2. 2. Not allowed. Although an annual audit by a third pa