SIE Regulatory Framework Practice Questions
Regulatory Framework makes up 4 of every 50 questions on a Tigertest SIE practice test. Here are 10 of the 16 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on FINRA's Securities Industry Essentials content outline. Original questions; 50 per test, weighted like the real 75-question exam, 70% to pass.
1. Passing the SIE exam alone allows a person to:
- A.Open a broker-dealer
- B.Meet one part of qualification
- C.Sell securities to retail customers
- D.Act as a registered principal
Answer: B. The SIE is a corequisite. To register as a representative, a person also needs a firm's sponsorship and a top-off exam such as the Series 7.
2. How long are SIE exam results valid without association with a firm?
- A.Five years
- B.Indefinitely
- C.Two years
- D.Four years
Answer: D. SIE results are valid for four years from the exam date. Representative-level exams generally lapse after two years out of the industry.
3. Which form registers an associated person with FINRA?
- A.Form U4
- B.Form ADV
- C.Form U5
- D.Form BD
Answer: A. Form U4 is the uniform application for registration. Form U5 reports a termination, Form BD registers a broker-dealer and Form ADV registers an adviser.
4. A firm must file Form U5 after a registered person leaves within:
- A.60 days
- B.90 days
- C.30 days
- D.10 days
Answer: C. The firm files Form U5 within 30 days of termination and gives a copy to the departing person.
5. Changes to the information on a Form U4, such as a new address, must be updated within:
- A.45 days
- B.One year
- C.30 days
- D.10 days
Answer: C. Firms must amend Form U4 within 30 days of learning of a change. Some events, like certain statutory disqualifications, have shorter deadlines.
6. A person subject to a statutory disqualification:
- A.Cannot join a firm without approval
- B.Must only notify customers
- C.May register with any firm freely
- D.Can register after any waiting period
Answer: A. Statutory disqualification, such as certain felony convictions within 10 years, bars association with a member unless FINRA approves through the eligibility process.
7. FINRA's Regulatory Element of continuing education must be completed:
- A.Only once
- B.Every two years
- C.Every three years
- D.Every year
Answer: D. Since 2023, registered persons complete Regulatory Element training each year, by December 31. The firm element is the firm's own training plan.
8. Which public tool lets investors check a broker's registration and disciplinary history?
- A.TRACE
- B.BrokerCheck
- C.EDGAR
- D.EMMA
Answer: B. FINRA BrokerCheck shows registration, employment history and disclosures drawn from the Central Registration Depository (CRD).
9. A retail communication is distributed to more than how many retail investors within 30 days?
- A.100
- B.25
- C.10
- D.50
Answer: B. Written communication to more than 25 retail investors in 30 days is a retail communication. To 25 or fewer it is correspondence.
10. Retail communications generally must be approved by a principal:
- A.Only if a customer complains
- B.Once each year
- C.Within 30 days after use
- D.Before first use
Answer: D. FINRA Rule 2210 requires principal approval before a retail communication is used, with limited exceptions. Correspondence may be reviewed after use.
Practice all 16 regulatory framework questions, and the rest of the 200-question bank, in the free SIE training sets. Questions you miss come back until you have mastered them.
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