Securities Industry Essentials (SIE) Quiz: Identify Reportable Disciplinary Events

What this quiz covers

This quiz focuses on Identify Reportable Disciplinary Events, giving you a quick way to practice the rules, question types, and explanations that matter most for Securities Industry Essentials (SIE).

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. immediately suspend the representative pending an internal review.
2. report the complaint on the representative's Form U4. (correct answer)
3. wait for the customer to file a formal legal action before taking any steps.
4. only take action if the customer can prove a financial loss occurred.

Question 2

1. only if the representative was terminated for cause.
2. within 10 business days of the termination date.
3. within 30 calendar days of the termination date. (correct answer)
4. only after the representative's licenses have been transferred to a new firm.

Question 3

1. being the subject of a written customer complaint alleging sales practice violations involving more than $5,000.
2. a mortgage foreclosure proceeding initiated by a bank.
3. a misdemeanor charge for trespassing. (correct answer)
4. a suspension of a registration by a state securities regulator.

Question 4

1. It does not need to be reported because it was not related to securities.
2. It must be reported, as shoplifting is a crime involving theft. (correct answer)
3. It only needs to be reported if the value of the goods was over $1,000.
4. It does not need to be reported because it was a misdemeanor.

Question 5

1. 10 days.
2. 30 days. (correct answer)
3. 60 days.
4. the end of the calendar year.

Question 6

1. The Securities Investor Protection Corporation (SIPC)
2. The Department of the Treasury
3. The Central Registration Depository (CRD) operated by FINRA (correct answer)
4. The Securities and Exchange Commission (SEC)

Question 7

1. associated person, who must notify their supervisor, who then notifies the firm's compliance department to file the form. (correct answer)
2. associated person, who must file the amended form directly with FINRA.
3. member firm's legal counsel, who is solely responsible for all regulatory filings.
4. local FINRA district office, which will file the form after being notified by the member firm.

Question 8

1. A civil lawsuit filed against the representative by a former spouse regarding divorce proceedings.
2. A satisfactory resolution of a credit card debt that was 90 days past due.
3. An outstanding federal tax lien. (correct answer)
4. A verbal complaint from a customer about poor investment performance.

Question 9

1. 10 calendar days
2. 10 business days
3. 30 calendar days (correct answer)
4. 90 calendar days

Question 10

1. Because the representative denies wrongdoing, no report is necessary.
2. The settlement must be reported on the representative's Form U4 because it exceeds $15,000. (correct answer)
3. The settlement is only reportable if the customer files for arbitration.
4. Since the firm paid the settlement, there is no impact on the representative's record.

Question 11

1. must be reported on an amended Form U4 within 30 days. (correct answer)
2. is a private financial matter and does not require disclosure to FINRA.
3. results in an automatic statutory disqualification.
4. only needs to be reported if the bankruptcy was business-related.

Question 12

1. a requirement to take the SIE exam again.
2. a permanent bar from the securities industry. (correct answer)
3. a mandatory arbitration hearing with the applicant's prior employer.
4. a fine paid directly to the SEC.

Question 13

1. the representative is likely to engage in outside business activities.
2. an increased potential for financial misconduct to alleviate monetary pressure. (correct answer)
3. the representative is not following the firm's investment recommendations.
4. an unreported change of address.

Question 14

1. $5,000 or more.
2. $10,000 or more.
3. $15,000 or more. (correct answer)
4. any amount.

Question 15

1. June 10th.
2. July 1st. (correct answer)
3. the conclusion of the internal investigation.
4. the end of the calendar quarter.

Question 16

1. They are subject to statutory disqualification and cannot be registered.
2. They are not subject to statutory disqualification for this event and it does not need to be reported on their Form U4.
3. They must report the conviction on their Form U4, but it does not trigger a statutory disqualification. (correct answer)
4. They can be registered but are limited to selling only mutual funds.

Question 17

1. must be disclosed on the representative's Form U4. (correct answer)
2. is only reportable if the amount of damages sought exceeds $25,000.
3. is considered a private matter until a judgment is rendered.
4. only needs to be reported if the firm is also named as a defendant.

Question 18

1. a red flag indicating potential securities violations.
2. likely to cause a statutory disqualification.
3. a non-disciplinary termination that is unlikely to affect future registration. (correct answer)
4. prohibited, as firms cannot disclose performance-related terminations.

Question 19

1. The Federal Reserve
2. FINRA (correct answer)
3. The Securities Investor Protection Corporation (SIPC)
4. The Depository Trust & Clearing Corporation (DTCC)

Question 20

1. A written letter from a client alleging their signature was forged on a new account form.
2. A verbal complaint from a client during a phone call that the representative is providing poor customer service. (correct answer)
3. A written complaint from a client alleging unsuitable recommendations, which settled for $16,000.
4. A written complaint from a client that the representative stole $10,000 from their account.