SIE practice questionhardFINRA - Statutory Disqualification
If a registered representative is convicted of a felony, which regulatory consequence is most likely?
- AMandatory retraining
- BStatutory disqualification from FINRA membership✓ Correct answer
- CSuspension for 30 days
- DNo consequences if unrelated to securities
Explanation
Why B — Statutory disqualification from FINRA membership
Any felony, whether related to securities or not, results in statutory disqualification, barring the individual from FINRA-registered activities. Retraining and suspension are insufficient, and unrelated felonies still count.
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