FINRA Series 63 – Uniform Securities Agent State Law — Question 6

An investment adviser or its representative may

Answer options

• A. only exercise any discretionary power in the purchase or sale of securities for a client's account after receiving written authority prior to the execution of the transactions.
• B. exercise discretionary power in the purchase or sale of securities for a client's account as long as it receives written discretionary authority over the account within 10 business days of the first discretionary transaction placed, assuming oral authority has already been given.
• C. exercise discretionary power in the purchase or sale of securities for a client's account as long as.
• D. exercise discretionary power in the purchase or sale of securities for a client's account only after.

Correct answer: B

Explanation

The correct answer is B because it specifies that the adviser can exercise discretionary power if they receive written authority within 10 business days of the first transaction after having oral consent. Option A is incorrect as it requires written authority before any transactions, while C and D are incomplete and do not provide sufficient conditions for exercising discretionary power.