Question

A broker-dealer receives a court order directing it to turn over the customer account records of Joe Jones, a customer with a substantial account. Which statement is TRUE?

A. The broker-dealer is not obligated to comply with the order if Joe Jones directs it not to do so
Incorrect Answer
B. The broker-dealer is obligated to comply with the order only if it has been issued by the Administrator
C. The broker-dealer is not obligated to comply with the order at its discretion
D. The broker-dealer is obligated to comply with the order and must disclose the information

Answer 1

Answer:

D. The broker-dealer is obligated to comply with the order and must disclose the information.

Explanation:

There is no such thing as broker dealer-client privilege, therefore the broker-dealer must comply with the court order and must disclose all the information that they require. It doesn't matter if the client, Joe Jones, wants to disclose the information or not, the court order must be followed.