Matt Is a Registered Representative with Fine, Howard, Fine and Associates

Matt is a registered representative with Fine, Howard, Fine and Associates. Tom, an old fraternity brother, is one of his clients. Business has been bad, and Matt is going to have difficulties making this month's mortgage payment. Tom was commiserating with him when the two hooked up to have a couple of beers together and offered to lend Matt some money to see him through the rough times. Based on these facts:

A) Matt must refuse Tom's offer since Tom is one of his clients.
B) Matt can accept Tom's offer, but only after obtaining pre-approval from Fine, Howard, Fine.
C) Matt can accept the offer without having to obtain pre-approval from his employer since he and Tom are former fraternity brothers and their friendship pre-dates their agent/client relationship.
D) Matt can accept the offer as long as Tom will not need to sell any investments to lend Matt the money. This would constitute a conflict of interest.

Correct Answer:

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