SIE practice questionhardFront-Running - Penalties
A broker found guilty of front-running may be subject to which consequences?
- ARequired to repay commissions only
- BA warning letter only
- CFines, suspension, or permanent bar from the industry✓ Correct answer
- DNo consequences if the client did not lose money
Explanation
Why C — Fines, suspension, or permanent bar from the industry
Front-running is a serious violation subject to significant regulatory penalties. A warning or simple repayment is insufficient; client losses are not required for a violation.
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