Series 6 – Investment Company and Variable Contracts Products
Representative Practice Exam
Total 500 plus [Questions & Answers with Full Explanations]
Q1. Which of the following best describes a “public communication” in the context of broker‐
dealer marketing?
A) Any internal memo distributed solely among employees.
B) Any communication distributed to 25 or more retail investors within a 30‐day period.
C) A one‐on‐one email to a current customer.
D) A confidential briefing for senior management.
Answer: B
Explanation: A “public communication” is defined as any written, electronic, or recorded
communication that is distributed to 25 or more retail investors in a 30-day period. Internal
memos or one‐on‐one communications are not considered public communications.
Q2. Before a broker‐dealer distributes any public communication, the material must be:
A) Approved by the marketing department only.
B) Circulated among peers for informal feedback.
C) Reviewed and pre-approved by the compliance department.
D) Sent to the state regulator for review.
Answer: C
Explanation: All public communications must be reviewed and pre-approved by the compliance
department to ensure they meet regulatory guidelines and are not misleading.
Q3. FINRA Rule 2210 requires that all public communications be:
A) Reviewed after distribution.
B) Pre-approved and in compliance with applicable regulatory standards.
C) Kept confidential until a quarterly audit.
D) Distributed only to institutional investors.
Answer: B
Explanation: FINRA Rule 2210 governs public communications and mandates that all such
materials be pre-approved and fully compliant with regulatory requirements.
Q4. Which of the following is NOT considered a public communication?
A) A television advertisement for a variable annuity.
B) A print advertisement in a newspaper.
C) A private, one-on-one telephone call with a customer.
D) An email blast to 30 retail investors.
,Answer: C
Explanation: A one-on-one telephone call is considered personalized correspondence rather
than a public communication, which involves distribution to a broad audience.
Q5. Which category of communications is subject to the highest regulatory scrutiny?
A) Institutional communications.
B) Retail communications.
C) Internal communications.
D) Training materials.
Answer: B
Explanation: Retail communications are distributed to retail investors (who may be less
sophisticated) and thus must be especially fair, balanced, and fully disclose risks.
Q6. An “institutional communication” is best described as:
A) Information distributed exclusively to institutional investors.
B) A communication intended for both retail and institutional audiences.
C) A personalized email to an individual investor.
D) An internal policy update.
Answer: A
Explanation: Institutional communications are directed solely to institutional investors, who are
presumed to have a higher level of sophistication and require less detailed disclosure than retail
communications.
Q7. Which of the following best defines “correspondence” in broker-dealer communications?
A) Mass-distributed emails to retail investors.
B) One-to-one communications, such as personalized letters or emails.
C) General advertisements posted on a website.
D) A published press release.
Answer: B
Explanation: Correspondence refers to one-to-one communications that are individualized and
not part of a mass-marketing effort.
Q8. A product-specific advertisement is characterized by:
A) A general overview of the firm’s services.
B) Detailed information about one product’s features, benefits, risks, and fees.
C) A broad discussion of market trends.
D) Internal training slides for new hires.
Answer: B
,Explanation: A product-specific advertisement focuses on one particular product and must
include all material details such as benefits, risks, and fees.
Q9. In a product-specific advertisement for a variable contract, which of the following must be
disclosed?
A) Only the product’s potential high returns.
B) Fees, risks, and performance limitations associated with the product.
C) Competitors’ fee structures.
D) The personal financial advisor’s background.
Answer: B
Explanation: Disclosures must include all material information—including fees, risks, and
performance limitations—to ensure the investor is fully informed.
Q10. A seminar sponsored by a broker-dealer must be:
A) Conducted without pre-approval if it is educational in nature.
B) Pre-approved by the compliance department before presentation.
C) Limited to discussing only product benefits.
D) Held exclusively for internal staff.
Answer: B
Explanation: Seminars, lectures, and group forums must be pre-approved by the compliance
department to ensure that all information presented is balanced and compliant with regulations.
Q11. Which of the following is essential when presenting product information during a seminar?
A) Focusing solely on the product’s benefits.
B) Including both benefits and risks along with required disclosures.
C) Avoiding any mention of risk to keep the audience positive.
D) Only discussing historical performance.
Answer: B
Explanation: A balanced presentation that includes both benefits and risks is required so that
attendees can make informed decisions.
Q12. When using electronic means (such as social media) for prospecting, what is required
regarding approval?
A) No approval is necessary if the message is brief.
B) The content must be pre-approved by the compliance department.
C) Approval is only required if the communication is sent to more than 25 people.
D) Approval is only required for print communications.
Answer: B
, Explanation: Regardless of the medium, all electronic communications that reach retail
investors must be pre-approved by compliance.
Q13. Which of the following methods is acceptable for prospecting new customers?
A) Unsolicited telephone calls to numbers on a do-not-call list.
B) Arranging an in-person meeting by mutual agreement.
C) Sending cold emails to individuals with no prior relationship.
D) Automated text messages sent without consent.
Answer: B
Explanation: In-person meetings arranged by mutual consent are acceptable; unsolicited calls or
emails without proper consent may violate regulatory rules.
Q14. When distributing marketing materials by mail, what must be included?
A) Only the return address.
B) Required disclosures and disclaimers as mandated by regulations.
C) A coupon without any product information.
D) No identifying information to protect privacy.
Answer: B
Explanation: All mailed marketing materials must include the necessary disclosures and
disclaimers to meet regulatory requirements.
Q15. Which electronic medium is subject to the same regulatory approval process as print
communications?
A) Social media posts.
B) Personal text messages between colleagues.
C) Internal instant messages.
D) Handwritten notes.
Answer: A
Explanation: Social media posts that are public communications must be reviewed and
approved just like print advertisements.
Q16. A product-specific advertisement for a variable annuity must include disclosures regarding:
A) Only the product’s attractive features.
B) Risks, fees, and any limitations of the product.
C) The firm’s overall market strategy.
D) The competitor’s product information.
Answer: B
Representative Practice Exam
Total 500 plus [Questions & Answers with Full Explanations]
Q1. Which of the following best describes a “public communication” in the context of broker‐
dealer marketing?
A) Any internal memo distributed solely among employees.
B) Any communication distributed to 25 or more retail investors within a 30‐day period.
C) A one‐on‐one email to a current customer.
D) A confidential briefing for senior management.
Answer: B
Explanation: A “public communication” is defined as any written, electronic, or recorded
communication that is distributed to 25 or more retail investors in a 30-day period. Internal
memos or one‐on‐one communications are not considered public communications.
Q2. Before a broker‐dealer distributes any public communication, the material must be:
A) Approved by the marketing department only.
B) Circulated among peers for informal feedback.
C) Reviewed and pre-approved by the compliance department.
D) Sent to the state regulator for review.
Answer: C
Explanation: All public communications must be reviewed and pre-approved by the compliance
department to ensure they meet regulatory guidelines and are not misleading.
Q3. FINRA Rule 2210 requires that all public communications be:
A) Reviewed after distribution.
B) Pre-approved and in compliance with applicable regulatory standards.
C) Kept confidential until a quarterly audit.
D) Distributed only to institutional investors.
Answer: B
Explanation: FINRA Rule 2210 governs public communications and mandates that all such
materials be pre-approved and fully compliant with regulatory requirements.
Q4. Which of the following is NOT considered a public communication?
A) A television advertisement for a variable annuity.
B) A print advertisement in a newspaper.
C) A private, one-on-one telephone call with a customer.
D) An email blast to 30 retail investors.
,Answer: C
Explanation: A one-on-one telephone call is considered personalized correspondence rather
than a public communication, which involves distribution to a broad audience.
Q5. Which category of communications is subject to the highest regulatory scrutiny?
A) Institutional communications.
B) Retail communications.
C) Internal communications.
D) Training materials.
Answer: B
Explanation: Retail communications are distributed to retail investors (who may be less
sophisticated) and thus must be especially fair, balanced, and fully disclose risks.
Q6. An “institutional communication” is best described as:
A) Information distributed exclusively to institutional investors.
B) A communication intended for both retail and institutional audiences.
C) A personalized email to an individual investor.
D) An internal policy update.
Answer: A
Explanation: Institutional communications are directed solely to institutional investors, who are
presumed to have a higher level of sophistication and require less detailed disclosure than retail
communications.
Q7. Which of the following best defines “correspondence” in broker-dealer communications?
A) Mass-distributed emails to retail investors.
B) One-to-one communications, such as personalized letters or emails.
C) General advertisements posted on a website.
D) A published press release.
Answer: B
Explanation: Correspondence refers to one-to-one communications that are individualized and
not part of a mass-marketing effort.
Q8. A product-specific advertisement is characterized by:
A) A general overview of the firm’s services.
B) Detailed information about one product’s features, benefits, risks, and fees.
C) A broad discussion of market trends.
D) Internal training slides for new hires.
Answer: B
,Explanation: A product-specific advertisement focuses on one particular product and must
include all material details such as benefits, risks, and fees.
Q9. In a product-specific advertisement for a variable contract, which of the following must be
disclosed?
A) Only the product’s potential high returns.
B) Fees, risks, and performance limitations associated with the product.
C) Competitors’ fee structures.
D) The personal financial advisor’s background.
Answer: B
Explanation: Disclosures must include all material information—including fees, risks, and
performance limitations—to ensure the investor is fully informed.
Q10. A seminar sponsored by a broker-dealer must be:
A) Conducted without pre-approval if it is educational in nature.
B) Pre-approved by the compliance department before presentation.
C) Limited to discussing only product benefits.
D) Held exclusively for internal staff.
Answer: B
Explanation: Seminars, lectures, and group forums must be pre-approved by the compliance
department to ensure that all information presented is balanced and compliant with regulations.
Q11. Which of the following is essential when presenting product information during a seminar?
A) Focusing solely on the product’s benefits.
B) Including both benefits and risks along with required disclosures.
C) Avoiding any mention of risk to keep the audience positive.
D) Only discussing historical performance.
Answer: B
Explanation: A balanced presentation that includes both benefits and risks is required so that
attendees can make informed decisions.
Q12. When using electronic means (such as social media) for prospecting, what is required
regarding approval?
A) No approval is necessary if the message is brief.
B) The content must be pre-approved by the compliance department.
C) Approval is only required if the communication is sent to more than 25 people.
D) Approval is only required for print communications.
Answer: B
, Explanation: Regardless of the medium, all electronic communications that reach retail
investors must be pre-approved by compliance.
Q13. Which of the following methods is acceptable for prospecting new customers?
A) Unsolicited telephone calls to numbers on a do-not-call list.
B) Arranging an in-person meeting by mutual agreement.
C) Sending cold emails to individuals with no prior relationship.
D) Automated text messages sent without consent.
Answer: B
Explanation: In-person meetings arranged by mutual consent are acceptable; unsolicited calls or
emails without proper consent may violate regulatory rules.
Q14. When distributing marketing materials by mail, what must be included?
A) Only the return address.
B) Required disclosures and disclaimers as mandated by regulations.
C) A coupon without any product information.
D) No identifying information to protect privacy.
Answer: B
Explanation: All mailed marketing materials must include the necessary disclosures and
disclaimers to meet regulatory requirements.
Q15. Which electronic medium is subject to the same regulatory approval process as print
communications?
A) Social media posts.
B) Personal text messages between colleagues.
C) Internal instant messages.
D) Handwritten notes.
Answer: A
Explanation: Social media posts that are public communications must be reviewed and
approved just like print advertisements.
Q16. A product-specific advertisement for a variable annuity must include disclosures regarding:
A) Only the product’s attractive features.
B) Risks, fees, and any limitations of the product.
C) The firm’s overall market strategy.
D) The competitor’s product information.
Answer: B
