Customer complaints (Business Practices)

An attorney that has been appointed executor of a deceased customer's estate contacts an investment adviser in a State to invest and manage the estate's financial assets until they are distributed to the heirs. The attorney offers to pay an advisory fee that is based on a percentage of assets under management. Which statement is TRUE regarding this arrangement? A. The advisory contract must be approved by the probate court judge prior to the adviser taking control of the financial assets B. The advisory contract must be approved by the heirs prior to the adviser taking control of the financial assets C. The contract is null and void because executors are not permitted to delegate investment and management functions over estate assets D. The contract is valid as long as the adviser exercises reasonable care to comply with the terms of the delegation

D

True or False: An executor or trustee is permitted to delegate investment and management functions as long as the trust or will permits such; and the agent actions are consistent with the purposes and terms of the trust or will.

True

A written customer complaint is received by mail about an error made by the firm that the firm resolves to the customer's satisfaction. The customer asks the member firm for a copy of the complaint letter along with a written apology letter. The member firm should: I retain the original complaint along with its resolution in the agent's file and send the customer a photocopy of the complaint II retain a photocopy of the original complaint along with its resolution in the agent's file and send the customer the original complaint copy III send the customer a written apology letter and retain a copy in the agent's file IV not send the customer a written apology letter and retain a note to this effect in the agent's account file A. I and III B. I and IV C. II and III D. II and IV

A

A written customer complaint is received by mail that the firm resolves to the customer's satisfaction. Which statement is TRUE regarding keeping this record? A. A copy of the original complaint along with its resolution must be retained in the file of the agent by the broker-dealer B. A copy of the original complaint along with its resolution must be retained at the firm's supervisory office C. A copy of the original complaint along with its resolution must be retained by the State Administrator D. There is no requirement to retain a copy of the complaint because it was resolved to the customer's satisfaction

A

An investment adviser representative receives a written complaint from a client about the handling of the client's account. Under the NASAA Statement of Policy on unethical practices, which statement is TRUE? A. A copy of the complaint must be filed promptly with the Administrator B. A copy of the complaint must be filed promptly with the SEC C. The complaint must be forwarded to a manager for resolution D. All of the above

A

An elderly client of a Registered Investment Adviser has gifted securities to his adult son at the end of each year, in an amount equal to the annual gift tax exclusion. The client has a stroke that has affected his ability to communicate and the RIA is approached by the adult son about continuing the annual giving of the gift. The RIA should: A. go ahead and continue giving the annual gift because this is in accordance with the prior practice in the account B. ask the son if he has a durable power of attorney granted by the father and obtain this prior to giving the annual gift C. follow the instructions in the client's will D. visit with the client and ask him whether he should give the gift, directing the client to squeeze his hand if the answer is "Yes"

B

Under NASAA rules, a complaint is defined as one received: I in a written letter II by e-mail III verbally over the telephone A. I only B. I and II only C. II and III only D. I, II, III

B

A customer submits a written complaint to your broker-dealer. Later, he changes his mind and asks that the complaint be returned. You should: A. do nothing unless the customer makes a written request B. return the original written complaint to the client C. return a copy of the complaint to the client and retain the original complaint in the firm's files D. return the original complaint to the client and retain a copy of the complaint in the firm's files

C

A customer writes a complaint letter to an agent, stating that "your stock recommendations stink" and "while everyone else has made money in the market, I am breaking even, at best." Under the Uniform Securities Act, which statement is TRUE about how this must be handled? A. This communication does not meet the definition of a complaint since the customer did not lose money B. This communication does not meet the definition of a complaint because it must be addressed to the firm's registration department, not to the agent C. This communication must be forwarded to a supervisor for resolution D. This communication must be forwarded to the State Administrator for resolution

C

An older customer with failing eyesight requests that his mail be delivered to the agent's brokerage firm branch office rather than to his home. He also requests that his agent be the one to read, on at least a monthly basis, his statements to him. If the agent cannot commit to this, the customer wishes that the agent's secretary be the one to read the mail. Which of the following actions may be taken? A. As long as written authorization is received from the customer's doctor detailing the customer's ailment, the customer's request may be honored B. Upon written confirmation from the customer, the customer's request may be honored C. As long as the action is not prohibited by the State Administrator, the customer's request may be honored D. The agent must refuse the customer's request because all mail must be sent to the customer's address or P.O. box

D