SIE Overview of the Regulatory Framework Question 7: Answer and Explanation

Question: 7

Which of the following connects a registered person's political contributions with the ability to perform certain activities for compensation?

• A. FINRA Rule 2030 – Engaging in Distribution and Solicitation Activities with Government Entities
• B. FINRA Rule 3270 – Outside Business Activities of Registered Persons
• C. FINRA Rule 4513 – Written Customer Complaints
• D. FINRA Rule 3280 – Private Securities Transactions of an Associated Person

Correct Answer: A

Explanation:

A: FINRA Rule 2030 – Engaging in Distribution and Solicitation Activities with Government Entities prohibits a registered person from "distribution or solicitation activities for compensation" with any governmental unit for two years if political contributions over a certain amount are made to a certain person's political activities. Choices B, C, and D do not connect political contributions with a registered person's ability to perform activities for compensation.