SIE Overview of the Regulatory Framework Question 11: Answer and Explanation

Question: 11

Which of the following is true regarding non-registered persons?

• A. A non-registered person may meet with a member of the public to discuss risk tolerance and financial goals as they relate to investing in securities.
• B. A non-registered person may ask whether a member of the public is interested in reviewing possible investments with a registered person of the firm.
• C. A non-registered person may review the current investment portfolio of a member of the public.
• D. A non-registered person may have passed a FINRA registration exam.

Correct Answer: B

Explanation:

B: Choice B is correct because a non-registered person may inquire as to a person's interest in meeting with a registered person from the firm to review investments. Choices A and C are incorrect because only a registered person is allowed to discuss these topics with a member of the public. Choice D is incorrect because a person who has passed a FINRA registration exam would be a registered person.