Certified Regulatory Compliance Manager (CRCM) — Question 46

An exempted borrower is a member of a national securities exchange or a registered broker or dealer who:

Answer options

• A. Maintains at least 1,000 active accounts annually for persons other than brokers, dealers, and persons associated with brokers and dealers
• B. Earns at least $10 million in gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers, or
• C. Earns at least 10 percent of its gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers
• D. None of these

Correct answer: A, B, C

Explanation

Option A is correct as it specifies the requirement of maintaining a significant number of active accounts, which qualifies the borrower as exempt. Options B and C also describe potential criteria for exemption but are not exclusive or definitive in nature, making A the strongest choice. Option D is incorrect as it denies all potential qualifications.