When is it permissible for a bank that is a government securities broker or dealer to refrain from filing a Form G-FIN-5 or a Form MSD-5 when an employee terminates the associated person status?
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A. B. C. D.D
The question relates to the regulatory requirements for banks that are government securities brokers or dealers when an employee terminates their associated person status. In such situations, the bank is required to file either a Form G-FIN-5 or a Form MSD-5, depending on the circumstances. These forms are required to be filed with the appropriate regulatory agency, which is typically either the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).
Form G-FIN-5 is used when a broker-dealer is terminating the registration of an associated person who is also a government securities broker or dealer. On the other hand, Form MSD-5 is used when a bank is terminating the associated person status of an individual who is involved in the bank's municipal securities business.
Now, the question is asking under what circumstances a bank can refrain from filing these forms when an employee terminates their associated person status. Let's examine each answer choice in turn:
A. When the employee files the form
This answer choice is incorrect because the responsibility for filing the Form G-FIN-5 or the Form MSD-5 lies with the bank, not the employee. While it is possible that an employee may voluntarily file such a form, the bank is still obligated to do so as well.
B. When the bank does not have all the necessary information and notifies its regulatory agency
This answer choice is partially correct. If a bank does not have all the necessary information to complete and file the required form, it may notify its regulatory agency of this fact. However, the bank must still make a good faith effort to obtain the required information and file the form as soon as possible.
C. When the employee's status is reinstated within six months
This answer choice is incorrect. If an employee's associated person status is reinstated within six months of termination, the bank is still required to file the appropriate form with its regulatory agency.
D. When the employee remains employed by the bank and the bank notifies its regulatory agency
This answer choice is correct. If an employee remains employed by the bank and only terminates their associated person status, the bank is not required to file a Form G-FIN-5 or a Form MSD-5. However, the bank must still notify its regulatory agency of the change in status.
In summary, the correct answer to the question is D.