Welcome to Relationships and Dealings: the operational topics that shape how a firm communicates and works with customers, vendors, and associated persons.
Exam Weight: 3 of 15 in Function 2 (6% of exam)
What You'll Learn
In this unit, you'll cover:
- Methods of communication: How communication methods fit into relationships and dealings with customers, vendors, and associated persons.
- Nonpublic personal information: Why information privacy is a distinct consideration in those relationships.
- Commission management and soft dollars: The commission-related concepts identified in the outline.
- Commission payments to unregistered persons: The prohibition on those payments.
- Vendor-selection due diligence: The evaluation tied specifically to selecting a vendor.
Why This Matters
Operations professionals encounter each of these topics while supporting a firm's external and internal relationships. The exam separates concepts that may appear in the same fact pattern, so identify the precise issue before choosing an answer.
Let's start with the methods a firm uses to communicate in those relationships.