SIE (Securities Industry Essentials) Practice Exam 2025 - Free SIE Practice Questions and Study Guide

Question: 1 / 400

What rule is violated when an agent conducts securities transactions outside their broker-dealer's purview?

The compliance rule

The selling away rule

An agent conducting securities transactions outside of their broker-dealer's supervision is a violation of the "selling away" rule. This rule requires all transactions to be conducted through the broker-dealer in order to ensure proper oversight and compliance. Option A, the compliance rule, refers to the overall requirement for agents and broker-dealers to comply with regulations. Option C, the anti-money laundering rule, focuses on preventing financial crimes such as money laundering. Option D, the private securities transactions rule, requires agents to notify their firm of any private transactions and to obtain written approval. While all of these rules are related to securities transactions and may be violated in certain situations, the most relevant rule in this scenario is the selling away rule.

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The anti-money laundering rule

The private securities transactions rule

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