Under MSRB rules, which statement about a registered representative sharing in a customer account is NOT true?

• A. MSRB must be notified in advance of the sharing arrangement
• B. Must receive approval to do so from the principal
• C. Must share only in proportion to the capital contributed
• D. Must share in both gain and loss

Answer: (A)

When a registered representative shares in a customer account, the arrangement must be clearly disclosed to the customer in writing, the customer must consent, and the firm’s principal must approve the setup. The sharing should be proportional to each party’s capital contribution, and both gains and losses must be shared. There’s no requirement to notify the MSRB in advance about such sharing arrangements. The emphasis is on client disclosure, written consent, and firm supervision, not on pre-notification to the MSRB.