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NEW QUESTION: 3
Jack is an investment adviser representative employed by Giant Investments, a family of mutual funds.
Jack has recently read an article posted on the web that he thinks explains some consequences of some tax law changes that are being considered extremely well, and he e-mails his existing retail customers with a summary of the salient facts of the article. Given these facts:
A. Jack must submit a copy of the e-mail to a principal of the company, but he did not need to do so prior to sending the e-mail.
B. a copy of the e-mail must be submitted to FINRA within 10 days of Jack's hitting the send button.
C. Both A and C are true statements regarding this situation.
D. Jack has violated FINRA rules if he did not first have a principal of Giant approve his e -mail prior to hitting the send button.
Answer: A
Explanation:
Explanation/Reference:
Explanation: When Jack e-mails some of his existing retail clients with a summary of the tax article, he must submit a copy of the e-mail to a principal of the company, but he does not need to do so prior to sending the e-mail. Since this was sent to Jack's existing retail customers, it falls under the category of
"correspondence," which does not need to be approved by a principal beforehand, but is subject to review and supervision requirements.
