What happens if a financial adviser fails the fit and proper test?

What happens if a financial adviser fails the fit and proper test?

• A. The adviser is barred from acting and cannot advise clients until resolved.
• B. The adviser continues with no restrictions pending review.
• C. The adviser may be barred from acting, or restricted until issues are resolved; regulatory actions may be taken.
• D. The adviser receives only a formal warning with no further actions.

Answer: (C)