SIE Overview of the Regulatory Framework Question 9: Answer and Explanation

Question: 9

In which of the following Articles is an agreement for FINRA members to follow laws; rules and regulations of the SEC; rules and regulations of the MSRB; rules and regulations of the Treasury Department; FINRA By-laws; NAS Regulation; NASD Dispute Resolution; FINRA Rules; and all FINRA rulings, orders, decisions, and sanctions?

• 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: C

Explanation:

C: Choice C is correct because this section describes the application for membership and the members' agreement to abide by all these sets of codes. Choice A is incorrect because this explains the meaning of words and phrases that are used through the By-Laws. Choice B is incorrect 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 D is incorrect because this explains which persons can perform securities or investment banking business.