Series 10 Practice Exam 2025 – Complete Guide for Securities Sales Supervisor Prep

For a registered representative, prior employer approval is required for certain outside business activities to ensure compliance with regulations and the protection of the firm's interests. In the context of the choices provided, the necessity for employer approval arises most significantly from activities that could directly relate to the representative’s professional role in the securities industry and potentially create conflicts of interest.

Engaging in business in a capacity like a taxi driver may not stand out directly as a securities-related activity, but it necessitates employer approval because it reflects an outside business engagement that could interfere with the representative's obligations and responsibilities to their primary employer. This is particularly relevant as FINRA rules aim to maintain professional integrity and avoid scenarios where a representative might misappropriate time or resources to a side job rather than fulfilling their duties to clients and their firm.

The other scenarios, such as being involved in private placements, taking equity in public companies, or serving on boards, typically require more scrutiny and approval because they involve potential financial conflicts or reputational concerns that relate directly to the business of selling securities. Therefore, while those activities might also require approval, they do so under different considerations compared to the scenario described in the question, which focuses more on maintaining control over external employment that could distract from a representative’s primary responsibilities in