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NEW QUESTION: 1
You are an agent with a broker-dealer and have learned of limited partnership interests being sold by a
small company that is planning to come out with a product that you think is going to "wow" the market.
You would like to get in on the action, but the minimum investment needed is $10,000, and you don't have
that kind of dough lying around. You talk to your brother, who is also one of your clients, and get him
interested in investing in the firm, too. The two of you decide to pull your money together, each putting in
$ 5,000, and you agree to split any profits or losses. Is this permitted?
A. Maybe. But it will require written consent from both your brother and your firm.
B. Yes. This is permitted since the agreement is between you and a family member.
C. No. Under no circumstances can an agent enter a joint investment with a client under the guidelines of
the Uniform Securities Act.
D. Yes, as long as your brother provides your firm with his written consent.
It may be permissible for you and your brother to open a joint account to invest in this
partnership since he is a family member, but it will require the written consent of both your brother and
your firm, and your firm is under no obligation to give its consent.