A registered representative who is also designated as a Municipal Finance Professional (MFP) is reviewing regulatory requirements regarding industry conduct. Which of the following statements regarding gifts, political contributions, and outside business activities are correct?
- Prior written notification must be provided to the employing member firm before engaging in any compensated business activity outside the scope of the relationship with the firm.Cevap
- An MFP may contribute up to $250 per election to an elected official candidate for whom the MFP is entitled to vote without triggering a ban on negotiated municipal business.Cevap
- CEvent tickets provided to a customer are classified as exempt business entertainment regardless of whether the registered representative accompanies the customer to the event.
- DPolitical contributions made independently by an MFP's spouse using separate funds automatically trigger a two-year ban on negotiated municipal securities business for the member firm.
Cevap
The correct statements state that prior written notice is required for compensated outside business activities under FINRA Rule 3270, and that an MFP may make a de minimis contribution of up to $250 per election to a candidate for whom they are eligible to vote under MSRB Rule G-37.
The correct options accurately state FINRA Rule 3270 requirements (prior written notice to the employer is mandatory for compensated outside business activities) and MSRB Rule G-37 de minimis exceptions ($250 per election cycle limit for an MFP eligible to vote for the candidate).
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Anahtar Kavram
Compliance requirements across FINRA and MSRB rules for gifts, political contributions, and outside business activities