Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

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Enhance your competence for the Series 6 Exam. Study with expertly crafted multiple-choice questions, each complete with hints and detailed explanations. Elevate your performance and pass the exam with confidence.

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When must a broker-dealer file Form U5 with FINRA?

Upon termination of an employee
After an annual review
When a partner is added
Upon conviction for any felony or securities-related misdemeanor in the last 10 years

The correct answer is: Upon conviction for any felony or securities-related misdemeanor in the last 10 years

The correct choice indicates that a broker-dealer must file Form U5 upon conviction for any felony or securities-related misdemeanor within the last 10 years. This is essential for maintaining transparency in the industry and ensuring that the records of registered individuals are up-to-date and accurately reflect their backgrounds. Form U5 serves as a termination notice for a registered representative, and reporting such convictions is a regulatory requirement designed to protect investors and maintain the integrity of the financial markets. While the other scenarios, like termination of employment or changes in partnership, also require specific reporting actions, they do not target the critical nature of keeping the records current regarding criminal activity. Filing a U5 for a conviction highlights the significance of ongoing accountability and scrutiny in the financial advisory profession, which helps in evaluating the qualifications and trustworthiness of registered individuals.