Discuss American Bankers Association CRCM Exam Topic 2 Question 124

First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, including two municipal securities representatives. Martin Wells, a commercial loan customer of the bank, tells Ms. Watkins he wants to invest in municipal securities and asks for her help. Mr. Wells has never dealt with the municipal securities department of the bank and has never purchased municipal securities. He wants to purchase the securities today. What should Ms. Watkins do?

ADetermine what he would like to buy and help him buy it

BHelp him make the purchase only if she can be assured the transaction meets the MSRB suitability requirements

CHelp him make the purchase but avoid making any recommendations or comments about the advisability of the transaction

DRefer him to a municipal securities representative

Suggested Answer: B

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20 comments · newest first

Ceola 1 month ago

Option A seems too rushed. He needs guidance first.

Gail 1 month ago

I agree with B. Protecting the customer is important.

Maryrose 2 months ago

Option C could work too. Just let him buy without pushing advice.

Roxane 2 months ago

I prefer option B. Suitability is key for a first-time investor.

Alesia 2 months ago

Yeah, option D makes sense. He’s new to this.

Yun 2 months ago

I think Ms. Watkins should refer him to a municipal securities representative.

Becky 2 months ago

Totally agree with B! Protecting the customer is important.

Shelia 2 months ago

Ms. Watkins is a municipal securities principal.

Elvera 3 months ago

Wait, can she really help him without knowing his financial situation?

German 3 months ago

Option B makes the most sense. Suitability is key!

Stevie 3 months ago

I think she should definitely refer him to a municipal securities representative.

Rolland 3 months ago

I’m surprised he wants to invest without any prior experience!

Avery 3 months ago

Referring him to a rep sounds safer, option D might be best.

Aretha 4 months ago

Wait, can she really just help him without knowing his needs?

Lynsey 5 months ago

I agree, option B is the way to go!

Leonie 5 months ago

Ms. Watkins should definitely assess suitability first.

Shannon 6 months ago

I remember discussing how important it is to assess a client's needs first. So, option A seems like it could lead to issues if he doesn't understand the risks.

Norah 6 months ago

I recall something about not making recommendations if the client is inexperienced. So maybe option C could be risky?

Erick 6 months ago

I'm not entirely sure, but I feel like referring him to a municipal securities representative might be the safest option.

Tamie 6 months ago

I think Ms. Watkins should definitely consider the suitability requirements before helping Mr. Wells. I remember a practice question about that.

American Bankers Association CRCM Exam - Topic 2 Question 124 Discussion