SIE Exam Podcast Series Episode 11 Regulatory Framework

Section 4: Overview of the Regulatory Framework 4.1 SRO Regulatory Requirements for Associated Persons 4.1.1 Registration and Continuing Education • SRO qualification and registration requirements ◦ Definition of registered vs. non-registered person ◦ Permitted activities of registered and non-registered persons ◦ Ineligibility for membership or association ◦ Background checks ◦ Fingerprinting ◦ Statutory disqualification ◦ Failing to register an associated person • State registration requirements (e.g., blue-sky laws) • Continuing Education (CE) requirement ◦ Firm Element ◦ Regulatory Element 4.2 Employee Conduct and Reportable Events 4.2.1 Employee Conduct • Form U4 and Form U5 (e.g., purpose, when to update forms) • Consequences of filing misleading information or omitting information • Customer complaints • Potential red flags 4.2.2 Reportable Events • Outside business activities • Private securities transactions • Reporting of political contributions and consequences for exceeding dollar contribution thresholds • Dollar and value limits for gifts and gratuities and non-cash compensation • Business entertainment • Felony, financial-related misdemeanors, liens, bankruptcy