Control of a licensee is presumed if a person or entity owns what percentage or more of the voting power of the licensee?

Control of a licensee is presumed if a person or entity owns what percentage or more of the voting power of the licensee?

• A. 3%
• B. 5%
• C. 7%
• D. 10%

Answer: (D)

Control of a licensee is presumed when a person or entity owns 10% or more of the voting power of the licensee. This threshold is significant as it reflects a level of ownership that allows an individual or entity to exert considerable influence over the decisions and operations of the licensee. Regulatory bodies establish this percentage to ensure that significant stakeholders are properly vetted and that the entities they control are compliant with laws and regulations governing the industry. This standard helps maintain the integrity and accountability within the financial and licensing sectors, thereby protecting consumers and the market.

Control of a licensee is presumed when a person or entity owns 10% or more of the voting power of the licensee. This threshold is significant as it reflects a level of ownership that allows an individual or entity to exert considerable influence over the decisions and operations of the licensee. Regulatory bodies establish this percentage to ensure that significant stakeholders are properly vetted and that the entities they control are compliant with laws and regulations governing the industry. This standard helps maintain the integrity and accountability within the financial and licensing sectors, thereby protecting consumers and the market.