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
- DThe individual is prohibited from associating with any broker-dealer or investment adviser as specified by the order✓ Correct answer
Explanation
Why D — The individual is prohibited from associating with any broker-dealer or investment adviser as specified by the 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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