A brokerage firm may create an in-house, non-cash incentive program if it is tied to the sale of which products?

The correct answer indicates that a brokerage firm can establish an in-house, non-cash incentive program related to the sale of all securities products sold by the registered representative (RR). This reflects the regulatory environment in which brokerage firms are allowed to create various incentive structures to promote sales among their representatives.

Incentive programs are typically designed to motivate and reward representatives for sales performance. By being tied to all securities products, the firm can incentivize a broader spectrum of products, thereby encouraging sales across various asset classes like equities, bonds, options, and mutual funds. This flexibility can help the firm respond to market demand and align its sales strategy with its overall business objectives.

This comprehensive approach is often preferred as it fosters a culture of sales across diverse product lines, which can benefit both the firm and its clients by transforming the sales representatives into well-rounded advisors capable of offering a variety of investment solutions.

In contrast, the other options are too restrictive. Limiting the incentive program to only fixed income products, only mutual funds, or only derivatives would not only diminish the overall sales strategy but also restrict the representative's ability to fully serve their clients' wide-ranging needs in the investment landscape. Thus, the choice to include all securities products allows for a more dynamic and