SIE practice questionmediumStatutory Disqualification
Which of the following would cause an individual to be subject to statutory disqualification from the securities industry?
- AFailing the SIE exam on the first attempt
- BReceiving a customer complaint that was later dismissed
- CBeing convicted of a securities-related felony within the past 10 years
- DChanging broker-dealer employers three times in two years✓ Correct answer
Explanation
Why D — Changing broker-dealer employers three times in two years
Statutory disqualification (SD) occurs when a person has been convicted of certain felonies (securities-related felonies within the past 10 years, or any felony involving theft, fraud, or misappropriation), expelled or suspended from an SRO, or subject to certain SEC or court orders. A dismissed complaint, failing an exam, or changing employers does not trigger statutory disqualification. A firm can apply for relief from SD through FINRA's Membership Continuance Application (MC-400).
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