Mary is a registered agent with XYZ Brokerage Services. Sue is a licensed insurance agent with ABC Life Insurance Company but is not registered to sell securities. Sue solicits the sale of mutual fund shares with her clients and processes the transaction through Mary. Mary splits her commissions with Sue. How has Mary violated the NASAA Statement of Policy on Dishonest & Unethical Behavior?[A] She split her commissions[B] She sold away from her broker/dealer[C] The activity that she engaged in was unregistered[D] She sold unsuitable securities

Question

Mandi

Social Studies

15 November, 01:41

Mary is a registered agent with XYZ Brokerage Services. Sue is a licensed insurance agent with ABC Life Insurance Company but is not registered to sell securities. Sue solicits the sale of mutual fund shares with her clients and processes the transaction through Mary. Mary splits her commissions with Sue. How has Mary violated the NASAA Statement of Policy on Dishonest & Unethical Behavior?[A] She split her commissions[B] She sold away from her broker/dealer[C] The activity that she engaged in was unregistered[D] She sold unsuitable securities

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Answers (1)

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Brandon Bentley · Answer 1

[A] She split her commissions

Explanation:

According to the NASAA Statement of Policy on Dishonest & Unethical Behavior, which is very strict regarding these kinds of situations, it is not considered legal that an agent shares their comissions with any person that does not count on the lawful registration with the same broker-dealer