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SIE EXAM UNIT 4|62 Questions with Verified Answers,100% CORRECT
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SIE EXAM UNIT 4|62 Questions with Verified Answers
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SIE EXAM UNIT 4|62 Questions with Verified AnswersFINRA membership eligibility standards are determined by
A) the Municipal Securities Rulemaking Board (MSRB)
B) the National Adjudicatory Council (NAC)
C) the Securities and Exchange Commission (SEC)
D) the Uniform Securities Act (USA) - CORRECT ANSWER B. the National
Adjuicatory Council (NAC)
It is the NAC that has the responsibility for determining membership eligibility
standards for FINRA members.
An individual applying for registration as an associated person will be rejected if
he
A) submitted an application for registration which omitted mention of a minor
traffic violation that occurred two years ago
B) failed to include the ZIP code on his home address
C) is under a court injunction regarding a domestic issue
D) is under an order of a foreign financial regulator denying, suspending, or
revoking his registration or barring him from association with a BD - CORRECT
ANSWER D) is under an order of a foreign financial regulator denying, suspending,
or revoking his registration or barring him from association with a BD
There are a number of reasons why application for registration as an associated
person might be rejected. Among themare if he is under an SEC order or an
orderof a foreign financial regulator denying, suspending, or revoking his
registration or barring him from association with a BD. Non-securities-related
misdemeanors, such as traffic violations, do not have to be reported. The ZIP code
being left out is not a causefor rejection, and only a court injunction enjoining him
from entering the securities business would be cause for rejection, not a domestic
issue.
,As a means of protecting the integrity of the industry and protection of the
investing public, associated persons of FINRA member firms must submit finger-
print records to
A) the U.S. attorney general
B) the attorney general for the state in which they reside
C) the Securities and Exchange Commission (SEC)
D) the FBI - CORRECT ANSWER A. U.S. attorney general
Registered BDs must have fingerprint records made for most of their employees,
and all directors, officers, and partners must submit those fingerprint cards to the
U.S. attorney general for identification and processing.
If a registered representative (RR) has been barred from the securities industry
while working for the ABC broker-dealer (BD), which of the following is TRUE?
A) The RR must refrain from engaging with the public on any securities-related
activity for one year.
B) The RR may apply for and obtain a principal's registration, but may not engage
any direct sales of securities until the bar has expired.
C) The RR can be an adviser to a BD but may not be registered with a BD
D) The RR may not associate with any BD. - CORRECT ANSWER D. the RR may no
associate with any BD
If the SEC bars an associated person, no BD may allow that person to associate
with it without the SEC's express permission.
The receptionist at a BD opens all incoming mail and forwards to various depart-
ments and people of the firm. Which of the following statements is TRUE?
I. The receptionist must be fingerprinted.
II. The receptionist need not be fingerprinted.
III. The receptionist must be registered with FINRA.
IV. The receptionist need not be registered with FINRA.
A) I and III
B) I and IV
, C) II and III
D) II and IV - CORRECT ANSWER B. I and IV
When opening mail for the BD, it is inevitable that the receptionist will handle
monies and securities from customers,and as such, will need to be fingerprinted.
Registration is not required.
Which of the following is CORRECT regarding the continuing education regulatory
element requirements?
A) Training must be completed within 120 days of the person's second
registration anniversary and every 5 years thereafter.
B) Training must be completed within 120 days of the person's first registration
anniversary and then annually thereafter.
C) Training must be completed within 120 days of the person's second
registration anniversary and every 3 years thereafter.
D) Training must be completed annually. - CORRECT ANSWER C) Training must be
completed within 120 days of the person's second registration anniversary and
every 3 years thereafter.
The regulatory element requires that all registered persons complete a computer-
based training session within 120 days of the person's second registration
anniversary and every 3 years thereafter
The continuing education firm element requires member firms to prepare in-
house training for all registered persons
A) annually
B) biannually
C) semiannually
D) on an as-needed basis determined by the member firm - CORRECT ANSWER A.
annually
The continuing education firm element requires member firms to prepare an
annual training plan. The training should take into account recent regulatory
developments, the scope of the member's business activities, the performance of
its personnel in the regulatory element, and its supervisory needs.
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