Overview of the Regulatory Framework: practice questions

Correct: A. The two components are the Firm Element, delivered by the employing firm and tailored to its business, and the Regulatory Element, prescribed by the regulator. Naming them correctly is a reliable item.

• B — There is no Annual Element; the firm-delivered component is called the Firm Element.
• C — There is no Supervisory Element in the continuing education structure.
• D — Statutory disqualification is a separate concept and is not a continuing education component.

Correct: B. Felonies, financial-related misdemeanours, liens and bankruptcy are listed as reportable events in section 4. The outline separately flags the consequences of omitting information or filing something misleading.

• C — The outline lists these explicitly as reportable, so they are not treated as private.
• D — Outside business activities are a separate reportable category concerning other employment.
• A — A customer complaint arises from a customer, not from a criminal charge against the representative.

Correct: C. FINRA states that passing the SIE alone does not qualify an individual for registration or to engage in securities business. Registration needs the SIE plus a qualification exam, and that second exam requires firm association.

• D — Registration requires a qualification exam in addition to the SIE.
• A — The four-year figure is how long SIE results stay valid, not a licence to transact.
• B — Supervision requires a principal-level registration, which the SIE does not confer.