SIE Exam Question 384: Answer and Explanation

Question: 384

When an agent engages in securities activities outside the scope of their broker-dealer,

• A. the agent must update their Form U-4 within 30 days.
• B. the agent must disclose this activity to their principal within 24 hours.
• C. the agent must show they understand the suitability requirements of the securities being sold.
• D. the agent is in violation of FINRA rules prohibiting selling away.

Correct Answer: D

Explanation:

D: Selling away is a violation. It means selling securities which are not authorized to be sold by the employing broker-dealer.