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Finra Exam SIE Topic 6 Question 1 Discussion

Actual exam question for Finra's SIE exam
Question #: 1
Topic #: 6
[All SIE Questions]

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?

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Suggested Answer: B

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 correct because underwriters are considered essential participants, and their status as bad actors disqualifies the offering.

A, C, and D are incorrect because custodians, transfer agents, and clearing corporations are not included in the 'bad actor' provisions of Regulation A.


by Lea at Feb 08, 2025, 11:57 PM

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Goldie
4 months ago
The underwriter is the one who can really mess things up if they're a bad actor. Better keep an eye on those guys!
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Billye
3 months ago
That's true, they play a crucial role in the offering process so it's important to make sure they're in compliance.
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Iluminada
3 months ago
Yeah, underwriters can definitely cause some trouble if they're not on the up and up.
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Luisa
4 months ago
Underwriter, for sure. Although, I heard the SEC has a sense of humor and might disqualify the offering if the underwriter's name is 'Sir Sketchy McSketcherson'.
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Amos
3 months ago
That's true, the SEC takes the role of underwriter very seriously.
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Rupert
3 months ago
I agree, underwriter is a key player in the offering process.
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Lorrie
4 months ago
Clearly it's the underwriter. I mean, who else would have that much influence on the offering? Except maybe the clearing corporation, but they're just the middlemen, right?
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Jamie
4 months ago
I'm gonna go with B. Underwriter. Gotta keep those bad actors out of the offering!
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Fairy
3 months ago
Absolutely, it's all about maintaining integrity in the market and ensuring transparency for all participants.
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Nobuko
3 months ago
I think it's important to have regulations in place to protect investors from potential harm.
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Lindy
3 months ago
Yeah, underwriters play a crucial role in the process, so it makes sense to disqualify them if they're deemed bad actors.
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Natalya
3 months ago
I agree, we definitely don't want any bad actors involved in the offering.
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William
4 months ago
I'm not sure, but I think it might be C) Transfer agent, as they handle securities transactions.
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Thora
4 months ago
I agree with Rolande, because underwriters play a crucial role in the offering process.
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Rolande
4 months ago
I think it's B) Underwriter.
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Leah
4 months ago
Hmm, I think it's the underwriter. They're the ones who really make or break the deal, right?
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Lilli
3 months ago
Definitely. If the underwriter is deemed a bad actor, it can have serious implications for the offering.
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Johnetta
3 months ago
Yeah, I agree. The underwriter plays a crucial role in the offering.
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Whitley
3 months ago
I think it's actually the underwriter too. They have a lot of influence in the process.
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Stefan
3 months ago
D) Clearing corporation
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Theresia
3 months ago
C) Transfer agent
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Pamela
4 months ago
I agree, the underwriter plays a crucial role in the offering process.
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Tayna
4 months ago
Definitely, they have a lot of influence on the success of the offering.
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German
4 months ago
D) Clearing corporation
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Gracia
4 months ago
B) Underwriter
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Sherill
4 months ago
C) Transfer agent
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Murray
4 months ago
B) Underwriter
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Fatima
4 months ago
A) Custodian
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Tina
4 months ago
A) Custodian
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