Part 6 — FCM and IB Costs Disclosure

Series 30 lesson on FCM and IB fee disclosure and branch-manager responsibility for explaining charges to customers.

This section is small, but it is useful because it tests whether the branch manager understands that customer charges must be explained as part of fair branch supervision.

What this part is really testing

  • whether fees and charges are being explained clearly enough
  • whether the branch manager recognises when cost opacity becomes a client-protection problem

Sample Exam Question

A branch uses fee language that is technically present but unclear enough that customers routinely misunderstand the total charges applied to their accounts. What is the best supervisory view?

A. The branch has a cost-disclosure weakness even if the fee language exists somewhere in the documents
B. No problem exists because some fee reference is present
C. The issue is only a bookkeeping problem after trade settlement
D. The issue matters only if customers ask for a fee schedule

Answer: A

Series 30 expects the branch manager to focus on real customer understanding, not mere document presence.

Revised on Thursday, April 23, 2026