SIE Overview of the Regulatory Framework Question 16: Answer and Explanation

Question: 16

Which of the following is an obligation of each member firm under FINRA Rule 3110(e) – Responsibility of Member to Investigate Applicants for Registration?

• A. Document the applicant's identity
• B. Review the applicant's driver's license
• C. Review the applicant's passport
• D. Document contacting the applicant's employers for the last twenty years

Correct Answer: A

Explanation:

A: Choice A is correct because the member firm is obligated to document the applicant's identity. Choices B and C are incorrect because neither the driver's license nor the passport are required as the documentation. Choice D is incorrect because the member is required to document contacting employers of only the last three years.