What is the consequence for an individual convicted of insider trading seeking to become a registered representative?

What is the consequence for an individual convicted of insider trading seeking to become a registered representative?

• A. She can be hired immediately.
• B. She can be hired after two years.
• C. She cannot be hired for six years.
• D. She must obtain a waiver to be hired.

Answer: (C)

The consequence for an individual convicted of insider trading seeking to become a registered representative is that she cannot be hired for six years. This reflects the serious nature of insider trading violations, as they undermine the integrity of the financial markets and breach fiduciary duties. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) impose significant restrictions on individuals with such convictions to protect investors and maintain trust in the financial system. The six-year ban serves as a deterrent against engaging in unethical trading practices, ensuring that those responsible for dishonest behavior must face substantial consequences before being allowed to re-enter the financial industry. This stringent policy reflects the regulatory framework's emphasis on maintaining honest and fair operations within the market, thereby reinforcing the importance of ethical conduct among financial professionals.

The consequence for an individual convicted of insider trading seeking to become a registered representative is that she cannot be hired for six years. This reflects the serious nature of insider trading violations, as they undermine the integrity of the financial markets and breach fiduciary duties.

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) impose significant restrictions on individuals with such convictions to protect investors and maintain trust in the financial system. The six-year ban serves as a deterrent against engaging in unethical trading practices, ensuring that those responsible for dishonest behavior must face substantial consequences before being allowed to re-enter the financial industry.

This stringent policy reflects the regulatory framework's emphasis on maintaining honest and fair operations within the market, thereby reinforcing the importance of ethical conduct among financial professionals.