Financial Industry Regulatory Authority (FINRA)

B is correct. Since Jennifer works for an SEC-registered RIA (federal covered adviser), she must register as an IAR with the SEC through the IARD system, not with FINRA. FINRA only regulates broker-dealers and their registered representatives, not investment advisers or IARs. A is incorrect because FINRA does not regulate IARs. C is incorrect because while she may need to pass the Series 65 exam (or equivalent), she registers with the SEC, not FINRA. D would only be correct if her firm were state-registered, not SEC-registered.

C is correct. FINRA is a self-regulatory organization with authority to regulate broker-dealers and their registered representatives (those who buy and sell securities for clients). FINRA does NOT regulate investment advisers (A), investment adviser representatives (B), or registered investment advisory firms (D). These entities are regulated by the SEC (if federal covered) or state securities regulators.

C is correct. Dual registrants who engage in both broker-dealer activities and investment advisory activities must comply with BOTH regulatory frameworks. This requires FINRA registration for the broker-dealer functions (with appropriate qualification exams like Series 7) AND registration as an IAR for the advisory functions (with Series 65 or equivalent). The percentage split is irrelevant. any amount of activity in each category triggers registration requirements. A and B are incorrect because they only address one aspect of the dual registration. D is incorrect because both activities trigger separate registration obligations.

D is correct (the EXCEPT answer). FINRA does NOT regulate, register, or examine investment advisers. Investment advisers are regulated by the SEC (if federal covered with $110M+ AUM) or state securities regulators (if managing less than $110M). A is accurate: FINRA is indeed a self-regulatory organization operating under SEC oversight. B is accurate: FINRA administers exams including Series 6, 7, 63, and others for broker-dealer representatives. C is accurate: FINRA has enforcement authority to impose fines, suspensions, and industry expulsions for rule violations.

B is correct. Statements 1, 3, and 4 are all within FINRA's authority over broker-dealers. Statement 1 is TRUE: FINRA can examine broker-dealer books and records as part of its regulatory oversight. Statement 3 is TRUE: FINRA has authority to investigate suitability complaints against broker-dealers and their representatives. Statement 4 is TRUE: FINRA establishes and enforces continuing education requirements (Regulatory Element and Firm Element) for registered representatives. Statement 2 is FALSE: FINRA does NOT regulate investment advisers or enforce fiduciary standards for IAs. that authority belongs to the SEC and state regulators.