A Registered Representative (RR) has a client who is also their mother-in-law. The RR wishes to borrow $50,000 from her to use as a down payment on a home. Which of the following best describes the compliance requirement for this transaction?

Question

Accepted Answer

Under Rule 3115(2)(iii), borrowing from a Related Person requires the RR to disclose the arrangement and obtain written approval from the firm before the transaction occurs.

A Registered Representative (RR) has a client who is also their mother-in-law. The RR wishes to borrow $50,000 from her to use as a down payment on a home. Which of the following best describes the compliance requirement for this transaction?

Discussion