Finra
Which of the following sanctions can FINRA impose on a registered representative who violates industry rules?
FINRA can bar individuals permanently from the securities industry, as well as impose fines, suspensions, and censures. Criminal prosecution, imprisonment, and asset seizure are powers of government agencies (DOJ, SEC) a
Complete Analysis & Legal Rationale
FINRA can bar individuals permanently from the securities industry, as well as impose fines, suspensions, and censures. Criminal prosecution, imprisonment, and asset seizure are powers of government agencies (DOJ, SEC) and courts, not FINRA.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.