SIE Overview of the Regulatory Framework Question 19: Answer and Explanation

Question: 19

Which of the following is NOT included in the definition of Associated Person under FINRA 1011 Definitions (b) "Associated Person"?

• A. Any person who is only in senior management
• B. Any person who is a sole proprietor
• C. Any person who is in investment banking controlled indirectly by the applicant
• D. Any person who does only clerical work

Correct Answer: D

Explanation:

D: Choice a D is correct because a person who is only doing clerical work is not considered an "associated person." Choices A, B, and C are incorrect because a person in senior management, a person who is a sole proprietor, and a person who is in investment banking controlled indirectly by the applicant are included in the definition of Associated Person under FINRA 1011 Definitions (b) "Associated Person."