SIE Exam Question 330: Answer and Explanation

Question: 330

A municipal finance professional at JoeBrokerDealer made a contribution of $500 to candidate in a local election that resulted in a ban on underwriting activity. A month later the MFP joined a new municipal securities firm, JaneBrokerDealer. The remainder of the two-year ban will apply to

• A. both JoeBrokerDealer and JaneBrokerDealer.
• B. neither JoeBrokerDealer or JaneBrokerDealer.
• C. JaneBrokerDealer only.
• D. JoeBrokerDealer only.

Correct Answer: A

Explanation:

A - JoeBrokerDealer will be subject to the ban for two years after the contribution was made even if the MFP leaves the firm. JaneBrokerDealer is also subject to the ban for the same period, even though the contribution was made while the MFP was associated with another municipal securities firm.