An associated person who is not a registered representative is permitted to do which of the following?

An associated person who is not a registered representative is permitted to do which of the following?

• A. Sell securities directly to clients
• B. Provide account opening forms to a new customer
• C. Execute trades on behalf of clients
• D. Provide investment recommendations

Answer: (B)

An associated person who is not a registered representative is permitted to provide account opening forms to a new customer because this task does not involve making securities transactions or giving investment advice, which typically requires licensing. The role of collecting account opening paperwork is more administrative and does not imply that the associated person is engaging in activities that require regulatory oversight. In contrast, selling securities directly to clients, executing trades, or providing investment recommendations all fall under activities that require proper registration with a regulatory authority, as these tasks involve a higher level of responsibility and regulatory scrutiny. Such activities generally necessitate extensive knowledge of securities regulations and market practices, which is why they must be performed by individuals who are registered representatives.

An associated person who is not a registered representative is permitted to provide account opening forms to a new customer because this task does not involve making securities transactions or giving investment advice, which typically requires licensing. The role of collecting account opening paperwork is more administrative and does not imply that the associated person is engaging in activities that require regulatory oversight.

In contrast, selling securities directly to clients, executing trades, or providing investment recommendations all fall under activities that require proper registration with a regulatory authority, as these tasks involve a higher level of responsibility and regulatory scrutiny. Such activities generally necessitate extensive knowledge of securities regulations and market practices, which is why they must be performed by individuals who are registered representatives.