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SIE: Regulatory Framework
SIE practice questionhardRegistration Lapse

If a registered person's registration has been terminated for more than two years, what must occur before they can re-register?

  1. AThey must only file a new Form U4
  2. BThey must retake and pass the applicable qualification exams✓ Correct answer
  3. CThey are permanently barred and cannot re-register
  4. DThey must complete an additional 40 hours of continuing education
Explanation

Why BThey must retake and pass the applicable qualification exams

Under FINRA rules, if a person's registration has been terminated for more than two years (previously four years, changed by FINRA in 2022), they must requalify by passing the applicable exams again. This includes both the SIE and any top-off exams. The two-year window prevents individuals from maintaining qualification indefinitely without being associated with a firm. Within the two-year window, exam results remain valid and the person can re-register without retaking exams.

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