Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

Is it permissible for a firm to conduct its annual compliance meeting via webcast?

1. No, it must be in person

2. Yes, but with certain restrictions

3. Yes, if questions can be answered timely

4. No, only through written communication

The correct answer is: Yes, if questions can be answered timely

The correct answer highlights that conducting an annual compliance meeting via webcast can be permissible, provided that there is a mechanism in place for attendees to ask questions and receive timely responses. This is important because the purpose of the compliance meeting is to ensure that all employees have a clear understanding of compliance issues, policies, and regulatory requirements. A well-structured webcast can effectively communicate this information, allowing employees to participate from various locations, which can enhance accessibility and engagement. However, for such a meeting to satisfy regulatory expectations and effectively foster an interactive learning environment, it is crucial that attendees can engage in real-time discussion. This interaction ensures that participants can clarify doubts and comprehend the material being presented, making the learning process more effective. Webcasts that allow for live questioning fulfill the need for dialogue that is typically found in in-person meetings, ultimately maintaining the spirit of compliance education while adapting to modern communication technologies. Therefore, this response focuses on the necessity of timely interaction during the webcast, which aligns with compliance training standards.