Exam Series 6 topic 1 question 211 discussion

Actual exam question from FINRA's Series 6

Question #: 211
Topic #: 1

Ms. Newbie has recently become licensed as a registered representative and is disappointed to discover no clients standing in line at the door to her office at
Savvy Investments. She decides she simply must take on a second job in order to pay the rent. The fitness club to which she belongs is advertising for a weekend receptionist, and the club manager has told her the job is hers if she wants it. Given this scenario, Ms. Newbie:

A. can accept the job since it only entails weekend work, which does not conflict with the hours she works as a registered representative.
B. can accept the job only if she tells her supervisor at Savvy that she will be working weekends.
C. must provide a written notice to Savvy Investments and await the firm’s approval before accepting the job.
D. can accept the job without any restrictions. She is not tied to Savvy by ball and chain, and her work as a receptionist at a fitness club does not have anything to do with the financial industry.

Show Suggested Answer

Suggested Answer: C 🗳️
Ms. Newbie must provide a written notice to Savvy Investments and await the firms approval before accepting the job at the fitness center. It is also the case that Savvy is entitled to withhold approval.
FINRA’s rule states, "No person associated with a member in any registered capacity shall be employed by, or accept compensation from any other person as a result of any business activity, other than a passive investment, outside the scope of his relationship with his employer firm, unless he has provided prompt written notice to the member."

by lolojepu at April 6, 2025, 1:25 a.m.

Comments

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!