FINRA General Securities Representative SIE Question # 30 Topic 4 Discussion
SIE Exam Topic 4 Question 30 Discussion:
Question #: 30
Topic #: 4
Under SEC Regulation A, which of the following market participants, if deemed to be a bad actor, will disqualify the offering from reliance on this registration exemption?
SEC Regulation A provides a registration exemption for smaller public offerings but includes a "bad actor" disqualification. If certain key parties, such as the issuer, underwriter, or affiliates, have been involved in securities violations, the exemption is forfeited.
B is correctbecause underwriters are considered essential participants, and their status as bad actors disqualifies the offering.
A,C, andDare incorrect because custodians, transfer agents, and clearing corporations are not included in the "bad actor" provisions of Regulation A.
[Reference:SEC Regulation A, Rule 262 (Disqualification Provisions), ]
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