SIE Exam Question 1008: Answer and Explanation

Question: 1008

The Federal Trade Commission implemented which of the following rules that requires broker-dealers and other financial institutions to create a written identity theft prevention program designed to detect the warning signs of identity theft in their day-to-day operations?

• A. CTR Rule
• B. Red Flags Rule
• C. SRO Rule
• D. Whistleblower Rule

Correct Answer: B

Explanation:

The Federal Trade Commission implemented the Red Flags Rule that requires broker-dealers and other financial institutions to create a written identity theft prevention program designed to detect the warning signs of identity theft in their day-to-day operations.