A registered representative is advising a young, high-income couple who are new parents. They want to start saving for their child's college education and are particularly interested in tax advantages and flexibility. They plan to contribute consistently over the next 18 years. The representative recommends a 529 College Savings Plan. Which of the following features is the MOST significant advantage of a 529 plan for this couple's stated goals?
A client invests $50,000 in a mutual fund with a stated front-end sales charge of 5.0%. However, the fund offers breakpoints, and the client qualifies for a reduced sales charge of 4.0% based on their investment amount. The representative fails to apply the breakpoint, and the client is charged the full 5.0%. This action is a violation known as:
A registered representative is preparing a seminar for more than 25 prospective retail clients. The presentation includes slides that show the 1, 5, and 10-year performance of a specific growth mutual fund, comparing it to a relevant benchmark. Under FINRA rules, how would this presentation be classified, and what is the principal approval requirement?
A client calls their registered representative at 3:30 PM ET to place an order to purchase shares of an open-end mutual fund. The representative enters the order immediately. The fund calculates its Net Asset Value (NAV) once per day at 4:00 PM ET. What price will the client receive for their shares?
A client is considering a 1035 exchange from an existing variable annuity to a newer product that offers a more attractive living benefit rider. The client is 55 years old and the current annuity is out of its surrender period. As the representative, which of the following factors represents the MOST critical suitability concern you must address with the client?
A married couple, both age 68 and retired, want to open a joint brokerage account. Their primary goal is to ensure that if one of them passes away, the assets in the account transfer directly to the survivor without going through probate. Which account registration is most suitable for this objective?
A registered representative discovers a clerical error on a client's trade confirmation for a mutual fund purchase. The confirmation shows 100 shares were purchased, but the order ticket and the client's intent were for 1,000 shares. Which of the following actions should the representative take? (Select TWO)
True or False: A representative is permitted to call a prospective client whose number is on the National Do-Not-Call Registry if the prospect has an existing investment account with a different representative at the same firm.
A new client is opening an account and provides all the necessary information for the new account form. According to FINRA rules, the firm must send a copy of the account record to the customer for verification within what timeframe?
A representative is reviewing a client's portfolio, which includes a variable life insurance policy purchased several years ago. The client has made all scheduled premium payments, but the policy's cash value has declined significantly. What is the MOST likely cause for this decline?