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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumRegulatory Element Continuing Education

A registered person becomes inactive because the person did not complete the FINRA Regulatory Element by the required deadline. What is the consequence while the person remains inactive?

  1. AThe person may continue all registered activities for 30 days
  2. BThe person may not perform or receive compensation for activities requiring registration until the requirement is satisfied✓ Correct answer
  3. CThe person's securities licenses are permanently revoked
  4. DThe person must automatically retake every qualification examination
Explanation

Why BThe person may not perform or receive compensation for activities requiring registration until the requirement is satisfied

A person who is inactive for failing to complete the Regulatory Element may not perform, or receive compensation for, activities requiring registration until the continuing-education requirement is satisfied. Inactive status does not itself permanently revoke registrations or automatically require every exam to be retaken.

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