SIE practice questionhardReporting regulatory investigations
A broker-dealer is under investigation by a state regulator. What must it do?
- ANo reporting is required✓ Correct answer
- BReport only to the state regulator
- CNotify SIPC
- DReport the investigation to FINRA per Rule 4530
Explanation
Why A — No reporting is required
Being merely under investigation by a state regulator is not by itself a FINRA Rule 4530 reportable event. Rule 4530 reporting is triggered by specified findings, disciplinary actions, regulatory proceedings, reportable complaints, and concluded violations.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulatory Framework questions
- If a regulatory agency files a complaint against a firm, what is the correct reporting procedure?
- If a registered person fails to report an outside business activity (OBA) and the firm discovers it, what is the…
- How quickly must a major cybersecurity event be reported to FINRA?
- If there is a breach of customer private information, a broker-dealer must:
- A criminal indictment of a registered individual must be reported to FINRA within how many days?
- Within how many days must a broker-dealer file a Form U5 after the termination of a registered person?
- If a registered person files for personal bankruptcy, what is the reporting requirement?
- If an associated person violates firm personal trading policies, the firm must: