SIE (Securities Industry Essentials) Practice Exam

Which of the following would NOT make an individual be considered statutorily disqualified?

1. Any misdemeanor conviction

2. A felony conviction

3. Fraudulent securities transaction

4. Revocation of a broker-dealer registration

The correct answer is: Any misdemeanor conviction

An individual who has any misdemeanor conviction, a felony conviction, a fraudulent securities transaction, or a revocation of a broker-dealer registration would be considered to have a statutory disqualification. A statutory disqualification is a term used in the securities industry to describe a person who is barred from engaging in certain activities due to their actions or behaviors. This disqualification can result from criminal or regulatory actions. In this scenario, the only option that would not directly lead to a statutory disqualification is option A, any misdemeanor conviction. While a misdemeanor conviction may not automatically disqualify an individual, it can still impact their ability to work in the securities industry, depending on the severity and nature of the conviction. In contrast, options B, C, and D all involve more serious offenses and would likely lead to a statutory disqualification. Therefore, option A is the correct answer as it does not directly result in a statutory disqualification.