SIE (Securities Industry Essentials) Practice Exam

When is it NOT required to provide notification to the trusted contact person or authorized parties that a temporary hold and investigation has been initiated on an account?

1. When the account shows irregular activity

2. When the party is the suspected perpetrator of financial exploitation

3. When there is significant financial loss

4. When unauthorized transactions are detected

The correct answer is: When the party is the suspected perpetrator of financial exploitation

When investigating potential financial exploitation on an account, it is typically important and necessary to notify the trusted contact person and/or authorized parties to ensure proper precautions are taken. Therefore, option B is correct given it is the only option that states when it is NOT required to provide notification. Options A, C, and D all describe different scenarios where notification to the trusted contact person/authorized parties would be necessary. Option A mentions irregular activity, which is important to monitor and may warrant an investigation; option C mentions significant financial loss, which may also indicate financial exploitation and require notification; and option D mentions unauthorized transactions, which are also a cause for concern and would also require notification. Therefore, option B stating when it is NOT required to provide notification is the correct answer.