Series 24 Registration and Continuing Education Practice Questions

Correct answer: C. A securities-related misdemeanor conviction within the past 10 years

Statutory disqualification under the Exchange Act includes certain securities-related misdemeanor and felony convictions within specified look-back periods, SRO bars/expulsions, and certain SEC/CFTC orders and findings. A pending civil suit is not itself a disqualifying event (no adjudication has occurred), and administrative lapses like a late U4 amendment or a CE deadline miss that is promptly cured are compliance issues, not statutory disqualifications.

• A. Incorrect. A pending, unresolved civil allegation is not itself a statutory disqualification.
• B. Incorrect. A single late U4 amendment is an administrative/reporting lapse, not a disqualifying event.
• C. Correct. A securities-related misdemeanor conviction within the relevant look-back period is a recognized basis for statutory disqualification.
• D. Incorrect. A CE deadline miss cured within a short period is a compliance lapse subject to consequences (e.g., CE inactive status), not a statutory disqualification.

• Source: 15 U.S.C. 78o (Exchange Act Section 15, broker-dealer registration)

Correct answer: B. January 15, 2025

Under FINRA's two-year rule, a person whose registration is terminated must requalify by examination (or obtain an appropriate waiver) if they do not become associated with a member firm in a registered capacity within two years of the termination date. Measuring two years from January 15, 2023 gives January 15, 2025. Choice A understates the window, C overstates it (that timeframe applies only under the five-year Maintaining Qualifications Program, which she did not enroll in), and D ignores the rule entirely.

• A. One year from termination is shorter than FINRA's two-year window for re-associating without requalifying by exam.
• B. Correct. Under FINRA's two-year rule, absent enrollment in the Maintaining Qualifications Program, a representative whose registration terminates on January 15, 2023 must become associated with a member firm in a registered capacity by January 15, 2025 to avoid requalifying by examination.
• C. Three years exceeds the two-year window FINRA allows before requalification by exam becomes necessary.
• D. The two-year rule does require requalification after the window lapses without MQP enrollment — this isn't an indefinite grace period.

Correct answer: C. 30 days

A member firm must file a Form U5 within 30 days of the termination of a registered person's association with the firm, and must promptly amend it if the firm later learns the information filed was or became inaccurate or incomplete.

• A. Incorrect — too short; this is not the Form U5 filing deadline.
• B. Incorrect — too short; this is not the Form U5 filing deadline.
• C. Correct — 30 days is the required Form U5 filing deadline after termination.
• D. Incorrect — too long; filing must occur sooner than 60 days.

Correct answer: C. Up to 5 years from termination

FINRA's Maintaining Qualifications Program, adopted alongside the 2022 CE rule changes, allows a formerly registered person to maintain their qualifications for up to five years after termination — rather than the default two-year window — provided they enroll in the program and complete the required Regulatory Element continuing education during that period. Choice A is the default two-year rule that applies absent MQP enrollment, and choices B and D do not reflect any actual FINRA timeframe.

• A. Two years understates the window available under the Maintaining Qualifications Program.
• B. Three years understates the maximum period the MQP allows before requalification by examination is required.
• C. A timely enrolled and CE-compliant registered person may maintain qualifications under the MQP for up to five years after termination without requalifying by exam.
• D. The MQP is not indefinite -- it is capped at five years, after which requalification by examination is required if the person has not re-registered.