SIE Overview of the Regulatory Framework Question 8: Answer and Explanation

Question: 8

In which of the following Articles are standards of behavior for FINRA members and associated persons described?

• A. FINRA By-Laws Article I – Definitions
• B. FINRA By-Laws Article III – Qualifications of Members and Associated Persons
• C. FINRA By-Laws Article IV – Membership
• D. FINRA By-Laws Article V – Registered Representatives and Associated Persons

Correct Answer: B

Explanation:

B: Choice B is correct because this section lists, in addition to registration requirements, the members' and associated persons' actions in the industry and how they are expected to conduct themselves. Choice A is incorrect because this explains the meaning of words and phrases that are used through the By-Laws. Choice C is incorrect because this describes the application for membership and agreements for members to make. Choice D is incorrect because this explains which persons can perform securities or investment banking business.