An applicant ______ designate as its full-time responsible managing employee a person who is the designated full-time RME of another registered firm.

• A. may not
• B. must not
• C. cannot
• D. should not

Answer: (B)

RME designation must be dedicated to a single registered firm. A person who is already the full-time RME for another registered firm cannot also be designated as the full-time RME of the applicant because the RME is responsible for supervising all professional activities and must be available full-time to that one firm. Allowing the same individual to serve as RME for two firms would stretch their capacity, create supervision gaps, and undermine regulatory requirements for accountability and compliance. Therefore, it is not permissible to designate such a person.