Final answer:
Regarding a member firm's fingerprint records for employees, the statement that is not true is that fingerprint records must be submitted to the SEC for processing. In reality, they are usually processed through FINRA. Other statements referring to the necessity of fingerprinting for various roles are generally true based on SEC regulations. option 1) Fingerprint records must be submitted to the Securities and Exchange Commission for processing is the correct answer.
Step-by-step explanation:
The question pertains to the rules governing fingerprint records for employees at member firms within the financial industry, particularly as regulated by the Securities and Exchange Commission (SEC). The following statements are evaluated for their accuracy:
• Fingerprint records must be submitted to the Securities and Exchange Commission for processing.
• Fingerprint records need not be kept for employees deemed to be performing clerical functions only.
• Fingerprint records are required for all those physically handling cash or securities, whether the position is deemed clerical or not.
• Fingerprint records are required for all associated persons involved in the sales of securities.
The statement amongst these options that is not true is the first one. While fingerprint records are often required for compliance with various regulatory requirements, these are typically processed through FINRA (Financial Industry Regulatory Authority), not directly by the SEC. FINRA collects and processes fingerprints to conduct a background check on individuals who seek to be associated with FINRA-regulated firms.
Statement two suggests that clerical employees are exempt from fingerprinting; however, the SEC rules are quite comprehensive and often require fingerprinting for a broad category of associated persons, which may include some clerical workers. Statement three correctly states that any employee who handles cash or securities, regardless of their job title, is required to provide fingerprint records. This requirement is put in place for security and anti-fraud purposes. Lastly, statement four is accurate as it aligns with the SEC’s regulation that all associated persons involved in sales should be fingerprinted to ensure the integrity of those dealing with securities transactions.