Under FINRA rules, which of the following correctly describes how Rights of Accumulation (ROA) differ from a Letter of Intent (LOI) when qualifying for mutual fund breakpoints?

Under FINRA rules, which of the following

Multiple choice — select the best answer

AROA gives a breakpoint discount based on the combined current and historical account value; LOI gives a breakpoint discount based on a stated future purchase commitment
BLOI is retroactive to previous purchases; ROA requires all purchases within 13 months
CROA applies only to new purchases; LOI applies only to existing holdings
DROA requires a written agreement; LOI requires no documentation

✓ Correct answer: A. ROA gives a breakpoint discount based on the combined current and historical account value; LOI gives a breakpoint discount based on a stated future purchase commitment Rights of Accumulation allow investors to aggregate prior holdings plus the current purchase to qualify for a breakpoint; a Letter of Intent projects future intended purchases to qualify immediately for a reduced load, making them complementary but distinct mechanisms.

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Topic: Series 6 (Investment Products)

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Under FINRA rules, which of the following correctly describes how Rights of Accumulation (ROA) differ from a Letter of Intent (LOI) when qualifying for mutual fund breakpoints?

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