Question

A broker-dealer has hired an individual for the position of a registered representative. The individual is struggling to pass the necessary qualification exam and has failed four times. After that fourth failure, the applicant faces a waiting period of ________.

1) 60 days
2) 180 days
3) 30 days
4) 90 days

Answer 1

The individual must wait for 180 days after the fourth failure of a qualification exam, allowing adequate time for preparation before the next attempt.

Step-by-step explanation:

After the fourth failure of a qualification exam, the individual (registered representative) must wait for a period of 180 days before attempting the exam again. This waiting period is intended to provide the individual with sufficient time to prepare and improve their knowledge in order to successfully pass the exam on the subsequent attempt. The industry regulatory authorities impose this cool-off period to ensure competent and knowledgeable professionals gain the necessary certification.

The waiting period that an individual faces after failing the necessary qualification exam to become a registered representative is 180 days (option 2).