Question

A registered person has left the securities industry and now holds a manufacturing job. Under what circumstances may this formerly registered person continue to receive commissions from work done at the person's old firm?

1) Any contract regarding continuing commissions must include the provision that the person's spouse must receive them in the event of the person's death.
2) The person may only receive commissions from current trades done by those who were the person's customers during employment at the firm.
3) Once the registered person has left the industry, the person must be treated like any member of the public and may not receive any further commissions.
4) A contract must have been signed by the registered person and the firm specifying what commissions are still to be paid.

Answer 1

Under certain circumstances, a formerly registered person in the securities industry can continue to receive commissions from work done at their old firm.

Step-by-step explanation:

In order for a formerly registered person in the securities industry to continue receiving commissions from work done at their old firm, certain circumstances must exist:

1. The person must have a contract specifying the continuing commissions and may include provisions for their spouse to receive the commissions in the event of their death.
2. The commissions can only be received from current trades done by customers who were the person's clients during their employment at the firm.
3. Once the registered person has left the industry, they must be treated like any member of the public and may not receive any further commissions.

Therefore, if these circumstances are met, the person may continue receiving commissions from their old firm.