Question

A registered representative wishes to sell a customer a limited partnership unit that is offered through his friend - the general partner in the venture. Under FINRA rules, this action is:

Answer 1

only permitted if the member firm is notified in writing and gives prior written approval to the transaction

Step-by-step explanation:

Under FINRA rules, registered representatives cannot effect private securities transactions.

But FINRA does allow an exemption from this prohibition on the condition that the member firm is notified in writing and gives prior written approval to the transaction