TAKING THE SERIES 6 EXAM, KNOW RULES REGARDING NETWORKING BETWEEN BROKERS AND FINANCIAL INSTITUTIONS

FINRA publishes a Content Outline for the Series 6 exam, the exam that tests applicants on investment companies and variable contracts. In Section 1.2 of the series 6 Content Outline, FINRA lists one of its own rules as important to know for the exam. This rule deals with networking arrangements between members and financial institutions.

But what exactly is "networking"? Bob Eder defines networking in his book, Study for the Series 6 Exam, in the following manner:

"Networking with Financial Institutions (1.2)

FINRA recognizes that when a broker/dealer and a bank agree to share office space, this could cause significant misunderstandings by people who utilize the services of the broker/dealer. Specifically, when a bank rents space within its branch office to a broker/dealer or one of its representatives, customer could think that the securities offered by the broker or dealer are FDIC guaranteed or covered by the FDIC. To prevent this misunderstanding, FINRA has adopted Rule 3160."

Bob Eder in his book also goes on to describe and define Rule 3160, the requirements that a broker or brokerage firm must observe when engaged in networking. See page 42 of Study for the Series 6 Exam.

Bob Eder's Study for the Series 6 Exam contains a discussion of Networking and Rule 3160 on page 42 of the text. 

Here is the link to FINRA's Content Outline for the Series 6 exam. See the references to the Networking in FINRA's Content Outline, section 1.2.

Study for the Series 6 Exam is available from Amazon in both paperback and Kindle e-book versions. 

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's SIE manual, Study for the Series 6 Exam, or questions in general about the Series 6 exam, such as networking, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001. 


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