Series 10 Exam Question 1: Answer and Explanation

Question: 1

When hiring a new employee, the principal must perform all of the following, EXCEPT:

• A. Confirm the agent's employment for the last 3 years.
• B. Obtain a U5 directly from the employee.
• C. Attest to the employee's character.
• D. Sign the U4 form prior to submission.

Correct Answer: B

Explanation:

A principal is not required to obtain a copy of the employee's U5 directly from the employee. The principal may obtain it from FINRA as well.