Question

Someone responsible only for training associated persons at a Financial Industry Regulatory Authority (FINRA) member firm

A) need not hold any registration because training is the person's only function.
B) need not be registered because training is considered administrative.
C) must be registered as a principal of the firm.
D) need only be registered as a registered representative.

Answer 1

The correct answer is A) need not hold any registration because training is the person's only function. The person responsible for training associated persons at a FINRA member firm need not hold any registration because training is their only function.

Step-by-step explanation:

In the Financial Industry Regulatory Authority (FINRA), someone responsible only for training associated persons at a member firm does not need to hold any registration because training is their sole function. This means that they are exempt from the registration requirements that apply to other roles within a FINRA member firm.

For example, an individual who is hired to solely provide training on compliance procedures to employees at a member firm does not need to be registered as a principal or a registered representative. Their role is focused on training and does not involve conducting transactions or providing financial advice.