Which of the following statements about a registered representative is FALSE?

Which of the following statements about a registered representative is FALSE?

• A. A representative may work for multiple developers
• B. A representative must be licensed to operate
• C. A representative can sell intervals as a service to clients
• D. A representative must disclose conflicts of interest

Answer: (A)

The statement regarding a registered representative working for multiple developers is not accurate. Typically, a registered representative is associated with one specific developer or sales organization at any given time, primarily to avoid conflicts of interest and ensure that the representative can remain compliant with all relevant regulations and ethical standards in the industry. This exclusivity fosters trust between the representative and their clients, as clients can be assured that the representative is dedicated to their specific interests without outside influences. Other statements are true and reflect the requirements and ethical responsibilities placed on registered representatives. They must be licensed to operate legally within the timeshare industry, ensuring they have met the necessary qualifications and regulatory standards. Representatives are also obligated to sell intervals as their primary service to clients and hear competing interests to help clients make informed decisions. Additionally, they are required to disclose any conflicts of interest, advocating for transparent communication and maintaining the integrity of the sales process.

The statement regarding a registered representative working for multiple developers is not accurate. Typically, a registered representative is associated with one specific developer or sales organization at any given time, primarily to avoid conflicts of interest and ensure that the representative can remain compliant with all relevant regulations and ethical standards in the industry. This exclusivity fosters trust between the representative and their clients, as clients can be assured that the representative is dedicated to their specific interests without outside influences.

Other statements are true and reflect the requirements and ethical responsibilities placed on registered representatives. They must be licensed to operate legally within the timeshare industry, ensuring they have met the necessary qualifications and regulatory standards. Representatives are also obligated to sell intervals as their primary service to clients and hear competing interests to help clients make informed decisions. Additionally, they are required to disclose any conflicts of interest, advocating for transparent communication and maintaining the integrity of the sales process.