Series 79 practice questioneasySEC Enforcement Actions
If the SEC imposes a bar on a registered representative, which of the following is a possible effect?
- AThe individual may continue in any securities industry capacity
- BThe individual may serve as a principal only
- CThe bar is only symbolic with no real effect
- DProhibition on association as specified by the SEC order✓ Correct answer
Explanation
Why D — Prohibition on association as specified by the SEC order
An SEC bar prohibits association with regulated entities as defined in the order. The traps incorrectly minimize or misrepresent the impact of a bar, which is a severe sanction.
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