UNIT 05.03-001 Flashcards
Which of the following does not automatically disqualify an applicant for registration?
Misstatements unwittingly made in an application for membership or registration as an associated person
If a misstatement was truly made unwittingly, it is not grounds for disqualification. Proving that the error was an accident or a misunderstanding may be difficult, though. A felony conviction, either domestic or foreign, or a misdemeanor conviction involving securities or money within the past 10 years or court injunctions prohibiting the individual from acting as an investment adviser, an underwriter, or a broker-dealer or in other capacities aligned with the securities and financial services industry may be grounds for disqualification.
If a FINRA member firm suspends a registered representative, the firm must report the suspension to
the FINRA.
The firm must report the suspension to its designated examining authority (DEA), in this case, the Financial Industry Regulatory Authority (FINRA).
The central registration depository (CRD) maintains information on the disciplinary history of all persons currently registered. A customer can access this information toll free through what service of the CRD?
BrokerCheck
The CRD maintains information on the disciplinary history of all persons currently registered. A customer can access this information toll free through the CRD’s BrokerCheck. A link to BrokerCheck is required on all FINRA member firm websites.
If a person unsuccessfully attempts the Series 6 exam, how long must they wait after the FIRST attempt before attempting the exam again?
30 days
There is a waiting period of 30 days after failing the exam for the first time. The period is the same after failing a second time. After a third failure, the waiting period is 180 days.
If a person unsuccessfully attempts the Series 6 exam twice, how long must they wait after the second attempt before attempting the exam again?
30 days
There is a waiting period of 30 days after failing the exam for the first time. The period is the same after failing a second time. After a third failure, the waiting period is 180 days.
How long does a person have, after the filing of a full termination Form U5, to associate with a member firm before they must requalify by taking an appropriate exam?
Two years
Within the two years a person may associate with another (or the same) member firm without requalifying (retaking the exams). If a person does not re-affiliate with a member firm within the two years, they will need to successfully pass the qualifying exams again.
How long does FINRA retain jurisdiction after the filing of a Form U5 full termination?
Two years
After the filing of Form U5 for a full termination, FINRA and other regulators retain jurisdiction for two years. The regulators may still require a terminated person to provide evidence and answer questions during this period.
Which of the following does NOT disqualify a person from associating with a member firm?
The person was CHARGED with felony fraud within the past 10 years.
Only a CONVICTION may result in a disqualification, not a charge. An expulsion, suspension, denial, or revocation from any regulator may be grounds for disqualification.
Which of the following persons would not need to be fingerprinted under regulatory requirements?
Adrian, a file clerk handling new account paperwork
Adrian, who does not work directly with customers or handle money, would not require fingerprinting. Alex likely will handle checks and certificates while opening the mail. Blair handles money, and Devon supervises Alex.
A change to which of the following items requires amending the Form U-4?
Home address
A home address change requires an amendment to Form U-4. A change to the member firm’s address requires the firm to amend its Form BD, but not the representative’s Form U-4. Marital status and vacation home address are not items of information on Form U-4.
