Question

After terminating from a securities firm and leaving the industry, regulators retain jurisdiction for a former representative for a period of?

1) 1 year
2) 5 years
3) 180 days
4) 2 years

Answer 1

Regulators retain jurisdiction over a former securities representative for a two-year period after they leave the industry, intended to prevent conflicts of interest.

Step-by-step explanation:

After terminating from a securities firm and leaving the industry, regulators retain jurisdiction over a former representative for a period of two years. This period is referred to as the cooling off period and is similar to the regulations that apply to former lawmakers, such as Members of the House of Representatives and Senators, who also have mandatory cooling-off periods before they can engage in lobbying activities. The purpose of these regulations is to prevent any potential conflicts of interest and the use of insider connections to influence current policies or legislation.