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SIE Prac Exam Part 4 (sec 31-32)|57 Questions with Verified Answers,100% CORRECT
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SIE Prac Exam Part 4 (sec 31-32)|57 Questions with Verified Answers
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SIE Prac Exam Part 4 (sec 31-32)|57 Questions with VerifiedAnswers
When a registered person leaves the securities business, Financial Industry
Regulatory Authority (FINRA) retains jurisdiction over that person for how long?
A)
1 year
B)
In perpetuity
C)
30 days
D)
2 years - CORRECT ANSWER D
Explanation
If a terminated person becomes subject to a customer complaint or charges are
brought against that person by FINRA, that person remains subject to FINRA
jurisdiction for two years following termination.
Regarding political contributions, limitations are place with the view to
A)
prohibit advisory services for a fee provided to any government the recipients
represent for a period of 10 years after the contribution.
B)
allow contributions to be made to any party without any possible loss of business.
C)
deter gaining political favor by employing what is commonly known as pay to
play.
D)
permit all contributions be made equally to all participating parties in an election.
- CORRECT ANSWER C
Explanation
The rule is designed to deter what is commonly called pay to play. It makes it
unlawful for an adviser to receive compensation (fee) for providing advisory
,services to a government entity for a two-year period after the adviser makes a
political contribution to a public official of a government entity.
In order for a registered representative of a member firm to receive any form of
compensation, such as commissions, after terminating employment, all of the
following statements are correct except
A)
the agreement must be entered into before the termination of employment.
B)
earnings from referred business from existing clients would be eligible for
payment.
C)
there must be a contract in effect calling for these continuing commissions.
D)
it would be permissible to pay continuing commissions to a surviving spouse. -
CORRECT ANSWER B
Explanation
Continuing commissions are permitted, but there is no requirement that they be
offered. In order for a former registered representative to receive them, the
terms must be spelled out in a contract entered into before termination. The
contract may call for payment to heirs but cannot provide any compensation for
business referred or introduced by an employee after that person ceases to be
registered with the member.
The regulatory element of training requires that all registered persons complete a
computer-based training session how frequently?
A)
Within 90 days of the person's second registration anniversary and then every 3
years thereafter
B)
Within 120 days of the person's second registration anniversary and then every 3
years thereafter
C)
Within 90 days of the person's third registration anniversary and then every 2
years thereafter
D)
,Within 120 days of the person's third registration anniversary and then every 2
years thereafter - CORRECT ANSWER B
Explanation
The regulatory element of training requires that all registered persons complete a
computer-based training session within 120 days of the person's second
registration anniversary and every three years thereafter (i.e., within 120 days of
the person's 2nd, 5th, 8th, 11th registration anniversary, and so on).
A municipal finance professional (MFP) is
A)
an elected official of a municipality having some decision-making authority
regarding who will underwrite the municipality's bonds.
B)
an employee of a Financial Industry Regulatory Authority (FINRA) member
engaged in municipal security representative activities such as underwriting and
trading.
C)
an employee of the Municipal Securities Rule Board (MSRB) specializing in seeing
that broker-dealers adhere to the MSRB rules and regulations regarding the sales
of municipal bonds.
D)
employed by a municipality (not elected) to oversee the issuance of municipal
bonds. - CORRECT ANSWER B
Explanation
As per the Municipal Securities Rulemaking Board (MSRB), a municipal finance
professional (MFP) is an associated person of a member firm who is primarily
engaged in municipal securities representative activities, including underwriting,
sales and trading, or any other activity that involves communications with the
public regarding municipals.
Associated persons or registered representatives who want to work outside of
their existing employment with their current broker-dealer may do so if they
provide prior written notice to the member. In which of the following would
notice not be required?
A)
, Ownership equaling 5% interest in another financial services company is intended
to be made.
B)
They will be involved in extensive fundraising activities for a charitable institution.
C)
The amount of total compensation expected from the outside employer is less
than $7,500 per year.
D)
They intend to serve only in the capacity of a director of another company with
no compensation. - CORRECT ANSWER B
Explanation
If a registered person wants to be employed by or accept compensation from an
entity other than the member firm, that person must provide prior written notice
to the member. These affiliations would include serving as an officer or director of
a company or owning any interest in another financial services company.
Failure to complete the regulatory element continuing education (CE)
requirement within the allotted time period will result in
A)
the registration being deactivated until the requirements are met.
B)
suspension of the individual until all CE requirements are met.
C)
an automatic bar from the industry for three years.
D)
an automatic extension request, which Financial Industry Regulatory Authority
(FINRA) will normally be grant. - CORRECT ANSWER A
Explanation
Failure to complete the regulatory element within the allowable time frame will
lead to FINRA's deactivating that person's registration until the CE regulatory
element is met.
Mary Alice McVey, a registered representative with a Financial Industry
Regulatory Authority (FINRA) member broker-dealer, has recently remodeled her
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