Question

If a registered representative terminates employment with a member firm, how many years may elapse before she would be required to again pass the qualifying exams in order to affiliate with her prior firm?

1) One year
2) Up to five years, because she are returning to her prior employer
3) Two years
4) Three years

Answer 1

A registered representative must repass qualifying exams if termination from the industry exceeds two years before re-affiliation with any FINRA-member firm, including a prior employer. the correct answer to the question is Two years (3).

Step-by-step explanation:

If a registered representative terminates employment with a member firm and seeks to return after a period of time, she would be required to repass the qualifying exams if the termination period from the industry has been two years or more.

Therefore, the correct answer to the question is Two years (3). After a two-year absence from the industry, individuals must retake and pass their exams before they can re-affiliate with any FINRA-member firm, including a prior employer. The rules do not provide a longer grace period for returning to the same employer.