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SIE: Regulatory Framework
SIE practice questionmediumContinuing Education

What happens if a registered representative fails to complete the Regulatory Element of continuing education by the required deadline?

  1. AThe representative's registration becomes inactive until the requirement is satisfied✓ Correct answer
  2. BThe firm is fined but the representative can continue working
  3. CThe representative receives a warning letter but can continue working
  4. DThe representative is permanently barred from the securities industry
Explanation

Why AThe representative's registration becomes inactive until the requirement is satisfied

If a registered person does not complete the Regulatory Element within the 120-day window, their registration becomes inactive. While inactive, the person may not perform any activities requiring registration, including soliciting or effecting transactions. The registration is reactivated once the CE requirement is satisfied. It is not a permanent bar — it is a temporary inactivation until compliance.

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