SIE (Securities Industry Essentials) Practice Exam

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Which of the following actions violates FINRA rules regarding selling away?

Transferring client funds between accounts
Engaging in private securities transactions without written prior consent of the employing BD
Discussing generic investment strategies with a client
Attending a financial seminar as a guest speaker

The correct answer is: Engaging in private securities transactions without written prior consent of the employing BD

Selling away refers to the practice of a broker or financial advisor engaging in private securities transactions without the knowledge or approval of their employing firm. This is a violation of FINRA rules as it can expose clients to potential risks and conflicts of interest. Option A, transferring client funds between accounts, may be a violation of other regulatory rules but it is not considered selling away. Option C, discussing generic investment strategies, is a routine part of a financial advisor's job and is not considered selling away as long as the strategies are approved by the broker-dealer. Option D, attending a financial seminar as a guest speaker, also does not violate FINRA rules unless the speaker is promoting private securities transactions. Only option B, engaging in private securities transactions without written prior consent of the employing BD, directly violates FINRA rules regarding selling away.