Finra SIE Exam - Topic 4 Question 15 Discussion

Actual exam question for Finra's SIE exam

Question #: 15
Topic #: 4

[All SIE Questions]

Which of the following activities is a responsibility of a mutual fund transfer agent?

AUnderwriting new shares of securities

BDistributing the fund's prospectus to investors

CMaintaining custody of the fund's securities

DMaintaining records of shareholder purchases and redemptions

Show Suggested Answer

Suggested Answer: D

A transfer agent is responsible for maintaining accurate records of shareholder purchases, redemptions, and account balances. They also handle the issuance and cancellation of shares and ensure shareholders receive appropriate distributions.

D is correct because maintaining shareholder records is a core duty of a transfer agent.

A is incorrect because underwriting is the responsibility of a broker-dealer.

B is incorrect because distributing the prospectus is handled by the fund's distributor.

C is incorrect because custody of securities is the role of a custodian, not the transfer agent.

by Charlene at Aug 14, 2025, 01:33 AM

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Ciara

4 months ago

Wait, they don't underwrite? That's surprising!

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Rosendo

4 months ago

Definitely B and D!

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Dalene

4 months ago

Transfer agents handle shareholder records.

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Emile

4 months ago

D is the main job, for sure!

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Paola

4 months ago

I thought they also did custody?

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Chun

5 months ago

I’m not confident, but I thought transfer agents might also deal with custody of securities? That could be option C, right?

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Zena

5 months ago

I feel like distributing the prospectus is important too, but that might be more of a marketing role? So, I guess I lean towards D as well.

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Sherell

5 months ago

I remember discussing the role of transfer agents in class, and I think they handle shareholder transactions, which sounds like option D again.

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Benedict

5 months ago

I think the transfer agent is mainly involved in record-keeping, so maybe option D? But I'm not entirely sure.

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Shawnna

5 months ago

Okay, I think I've got it. The transfer agent is responsible for the administrative tasks like keeping track of shareholder accounts, so option D is the right answer.

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Yuette

6 months ago

I'm a bit confused by the options here. Underwriting new shares and maintaining custody of securities don't seem like transfer agent duties to me. I'll have to eliminate those and see what's left.

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Armanda

6 months ago

Maintaining records of shareholder purchases and redemptions - that sounds like the key responsibility of a transfer agent, so I'll go with option D.

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Merlyn

6 months ago

Hmm, I'm not entirely sure about this one. The options seem a bit similar, so I'll have to think it through carefully.

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Jesus

6 months ago

This seems like a straightforward question about the responsibilities of a mutual fund transfer agent. I'm pretty confident I can figure this out.

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Tommy

7 months ago

Hmm, I was thinking B at first, but D makes more sense. Gotta keep those shareholder details in order.

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Laila

7 months ago

But what about option B) Distributing the fund's prospectus to investors? Isn't that also a responsibility of a transfer agent?

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Val

7 months ago

I agree, D is the way to go. Keeping track of all those purchases and redemptions must be a full-time job!

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Jamika

7 months ago

I agree with Arleen, because transfer agents are responsible for keeping track of shareholder transactions.

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Tammara

8 months ago

D definitely seems like the correct answer here. Maintaining shareholder records is a key responsibility of a mutual fund transfer agent.

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Arleen

7 months ago

A) Underwriting new shares of securities

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Arleen

8 months ago

I think the answer is D) Maintaining records of shareholder purchases and redemptions.

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