Which of the following records must be kept by a broker-dealer for a minimum of 4 years?
A) Customer complaint letters
B) Partnership articles if the broker-dealer is organized as a partnership
C) Customer confirmations
D) Blotters
A) Customer complaint letters
There are 3 basic recordkeeping time periods. Customer confirmations are an example of a 3-year retention period. The trade blotter is an example of a 6-year retention period and partnership articles (for a partnership) is an
Standardization of transaction settlements, good delivery of securities, ex-dividend dates and trade confirmations is addressed in the
A) Conduct rules
B) Code of arbitration procedures
C) Uniform Practice Code (UPC)
D) Code of Procedure (COP)
C) Uniform Practice Code (UPC)
The Uniform Practice Code (UPC) established the uniform trade practices, including settlement, good delivery, ex-dates, confirmations, don't know (DK) procedures, and other guidelines for broker-dealers to follow when they d
The portfolio manager of a pension plan is well known as a fan of the local NFL football team. The branch manager of a FINRA member firm who has been trying to secure a portion of the plan's investment account owns a luxury box at the stadium. FINRA's Con
A) the branch manager to invite the portfolio manager to accompany him to a game of his choice
A gift of tickets to a single game, even in a luxury box, would be permitted under the Conduct Rules; a gift of tickets for the season would not be. Any gift co
Violations of the FINRA Conduct Rules would include
1) engaging in a private securities transaction without compensation with an immediate family member without notification to the employing broker-dealer
2) parking a license for a former registered princ
D) II and III
Parking a license, regardless of the registration level, is a prohibited practice. Receiving a complimentary registration to a seminar produced by a mutual fund sponsor could be permitted, but it would have to be in a location that is consid
If a registered person fails to complete the regulatory element within the prescribed period,
A) the person must not be present on the firm's premises until the requirements of the program are met
B) FINRA will normally grant a 30-day extension of time
C)
C) FINRA will deactivate that person's registration until the requirements of the program are met
Failure to complete the regulatory element within the prescribed time period will lead to FINRA deactivating that person's registration until the requirement
A municipal finance professional (MFP) would have duties
A) including issuing and underwriting municipal bonds
B) including underwriting, sales and trading of municipal bonds
C) limited to giving financial advice regarding new issue municipal bonds
D) lim
B) including underwriting, sales and trading of municipal bonds
A municipal finance professional (MFP) is an associated person of a FINRA member firm engaged in municipal securities underwriting, trading, sales, financial advisory, research, investment ad
An applicant completing a Form U-4 would NOT be required to list
A) date of birth
B) employment history for the past 10 years
C) legal name and any aliases used
D) residential history for the past 10 years
D) Residential history for the past 10 years
The Form U-4 requires residential history for the past 5 years only. Employment history for the past 10 years, legal name and any aliases used and date of birth are all examples of required information on form
A FINRA member broker-dealer has a new hire with the sole responsibility of training associated persons. She will not have any dealings with the firm's customers. In order to hold this position, the new hire
A) must only register as a registered represent
C) Must register as a principal
An individual who trains people to supervise, solicit, or conduct business in securities must be registered as a representative. However, an individual must be registered as a principal with FINRA when they are involved sol
Application for FINRA membership by a firm carries the applying firm's specific agreement to
1) comply with federal securities laws
2) pay dues, assessments, and other charges in the manner and amounts fixed by the association
3)pass the appropriate quali
B) I and II
A registered representative of a FINRA member firm has been accused of violating the Conduct Rules. Treatment of this case will be handled under the FINRA
A) Uniform Practice Code
B) Uniform Securities Act
C) Code of Arbitration Procedure
D) Code of Proce
D) Code of Procedure
The Code of Procedure (COP) describes how member violations of the Conduct Rules will be heard and handled. The Code of Arbitration Procedure governs the resolution of disagreements and claims between members, registered representativ
Each of the following might be considered misleading or statements omitting necessary information EXCEPT
A) an advertisement claiming that a BD's customers consistently do much better than any other BD's customers in terms of profitability
B) an options c
B) an options chart for calls showing unlimited gain potential and the possibility of losing all of one's investment
An option call chart showing unlimited potential gains would not be considered misleading or omitting information as long as the potential
A registered representative offers a free lunch seminar for retired seniors at which ideas for sustaining a successful financial retirement are to be discussed. Before the seminar, a poll of the attendees indicates that only one of them has ever invested
B) I and III
FINRA mandates that members must consider the nature of the audience to which the communication will be directed and should provide details and explanations appropriate to the audience. Investing in options or taking short positions in securi
The Securities Exchange Act of 1934 required the registration of
1)broker-dealers
2) initial public offerings (IPOs)
3)margin accounts
4) stock exchanges
A) II and III
B) I and II
C) III and IV
D) I and IV
D) I and IV
Broker-dealers and exchanges are required to register with the SEC. The 1934 Securities Exchange Act authorized the FRB to set margin rules, but does not register margin accounts. Registration of IPOs is a requirement of the Securities Act of
A broker-dealer has hired an individual for the position of registered representative. The individual is struggling to pass the necessary qualification exam and has failed 4 times. After that fourth failure, the applicant faces a waiting period of
A) 180
A) 180 days
If an individual fails the qualification exam, the waiting period before the next attempt is 30 days following the first 2 unsuccessful tries. Once failing a third time, each successive attempt requires a 180 day waiting period.
When a registered person terminates from a FINRA member firm, filing form U-5 is the responsibility of
A) FINRA
B) the member firm
C) the registered person
D) the depository trust company
B) The member firm
Should a person registered with a member resign or be terminated, the member must file Form U-5 with the Central Registration Depository (CRD) within 30 days of termination date.
Under rules found in the Investment Advisers Act of 1940, if a political contribution to certain elected officials or candidates is made,
A) an adviser must suspend providing advisory services to any government they represent until it is determined if the
B)an adviser may not provide advisory services to any government they represent for a fee for 2 years
The rule makes it unlawful for an adviser to receive compensation (fee) for providing advisory services to a government entity for a 2-year period after
A requirement placed by the SEC upon applicants for registration as registered representatives of a broker-dealer that is designed to lessen the possibility that an individual's criminal past might not have been discovered by the employing firm is
A) a pe
C) filing of a fingerprint card with the U.S. Attorney General
Because certain crimes result in statutory disqualification from association with a member firm, it sometimes happens that applicants do not disclose everything on their applications. If there
After working for several years as a retail sales manager, Marsha decided to seek employment at a FINRA member firm. Marsha was successful on her first attempt on the qualification exam and during her first 3 years as a registered representative, opened a
B) provide prior written notice to the employing member firm
Which of the following is the most appropriate action for a registered representative to take after receiving a written complaint letter from a client?
A) Forward the complaint to FINRA and maintain a copy in the representative's records.
B) Place a telep
C) Turn the letter over to the representative's supervisor.
Representatives receiving a written customer complaint are required to turn the complaint over to their supervisor without delay.
Five years ago, Tom, a resident of State A, was convicted of driving under the influence (DUI). At the time, the conviction was considered a misdemeanor. Last year, State A's legislature made DUI a felony. When filing a Form U-4 for registration with a me
C) II and IV
Non-securities related misdemeanors do not have to be reported on the applicant's Form U-4. Even though that DUI violation is now a felony, Tom's record shows him convicted of a misdemeanor. If it had been a felony 5 years ago, it would have