Series 6 STC Chapter 1-4 (Expanded) Questions
with 100% Correct Answers
What is the primary purpose of an SRO? Correct Answer:
To maintain fair and orderly markets and protect
investors.
Who is the SRO for the OTC market? Correct Answer:
FINRA.
What must an RR do before making recommendations?
Correct Answer: Develop a customer profile.
Why must a customer profile be updated regularly?
Correct Answer: Because customers circumstances and
needs can change.
What law established Reg BI? Correct Answer: The SEC
adopted Reg BI in 2019.
Who is considered a retail customer under Reg BI?
Correct Answer: A natural person or their non-
professional legal representative using advice for
personal, family, or household purposes.
, What document summarizes the client relationship
under Reg BI? Correct Answer: The Client Relationship
Summary (Form CRS).
How long can Form CRS be? Correct Answer: No longer
than two pages.
What are the 4 obligations under Reg BI? Correct
Answer: 1. Disclosure, 2. Care, 3. Conflict of interest, 4.
Compliance.
Can a Series 6 RR use 'advisor' in their title? Correct
Answer: No, unless they pass Series 65/66 and are
registered as an adviser.
What does Reg BI ban regarding sales contests? Correct
Answer: Sales contests/bonuses tied to specific
products.
What are the 4 types of income considered in profiling?
Correct Answer: Earned, Passive, Investment, Deferred.
What is earned income? Correct Answer: Compensation
for goods/services, taxed at marginal tax rate.
with 100% Correct Answers
What is the primary purpose of an SRO? Correct Answer:
To maintain fair and orderly markets and protect
investors.
Who is the SRO for the OTC market? Correct Answer:
FINRA.
What must an RR do before making recommendations?
Correct Answer: Develop a customer profile.
Why must a customer profile be updated regularly?
Correct Answer: Because customers circumstances and
needs can change.
What law established Reg BI? Correct Answer: The SEC
adopted Reg BI in 2019.
Who is considered a retail customer under Reg BI?
Correct Answer: A natural person or their non-
professional legal representative using advice for
personal, family, or household purposes.
, What document summarizes the client relationship
under Reg BI? Correct Answer: The Client Relationship
Summary (Form CRS).
How long can Form CRS be? Correct Answer: No longer
than two pages.
What are the 4 obligations under Reg BI? Correct
Answer: 1. Disclosure, 2. Care, 3. Conflict of interest, 4.
Compliance.
Can a Series 6 RR use 'advisor' in their title? Correct
Answer: No, unless they pass Series 65/66 and are
registered as an adviser.
What does Reg BI ban regarding sales contests? Correct
Answer: Sales contests/bonuses tied to specific
products.
What are the 4 types of income considered in profiling?
Correct Answer: Earned, Passive, Investment, Deferred.
What is earned income? Correct Answer: Compensation
for goods/services, taxed at marginal tax rate.
