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SIE practice questioneasyAssociated Persons

Which of the following individuals would be considered an 'associated person' of a broker-dealer?

  1. AAn independent attorney hired to review the firm's compliance manual
  2. BA person who solicits securities transactions on behalf of the firm✓ Correct answer
  3. CA vendor that provides the firm's trading software
  4. DAn employee who only performs janitorial services at the firm
Explanation

Why B — A person who solicits securities transactions on behalf of the firm

An associated person is any individual who engages in the firm's securities business, including soliciting trades, supervising those who do, or acting in a principal capacity. Clerical or ministerial employees (like janitors) who do not engage in the securities business, independent contractors providing non-securities services, and software vendors are generally not considered associated persons.

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