18: COMPLAINT RESOLUTION (46)

Question 1

Disputes between anyone in the industry, including registered clearing corporations are handled via _____ (except for statutory discrimination claims)

Answer 1

Arbitration

Question 2

Disputes between anyone in the industry, including registered clearing corporations, must go to arbitration, with the exception of ______

Answer 2

statutory discrimination claims

Question 3

Statutory discrimination claims

Answer 3

claims alleging sexual harassment or discrimination on the basis of, among other things, age, sex, or ethnicity

Question 4

FINRA Rule 8110 requires that members make available a current copy of the _____ examination by customers upon request.

Answer 4

FINRA manual

Question 5

When a member firm receives a complaint about one of its reps, the first person to be informs about the complaint is ___

Answer 5

The principal

Question 6

For how long must a FINRA member firm keep a record of written customer complaints?

Answer 6

4 years

written complaints and any correspondence relatated to it must be kept 4 years

Question 7

T/F: An applicant for registration as a registered representative of a FINRA member firm requires disclosure of significant personal information. Among the responsibilities of the member firm is verification of the previous 3 years employment

Answer 7

True

> Form U4 requires applicant to provide a 5-year residency history and a 10-year employment history.
Member firm only needs to verify last 3 years employment
No need to verify residency history

“Form U4 requires an applicant to provide a 5-year residency history and a 10-year employment history. With regard to the employment history, the member firm must verify the previous 3 years. There is no requirement to verify residency history.”

Question 8

T/F: An applicant for registration as a registered representative of a FINRA member firm requires disclosure of significant personal information. Among the responsibilities of the member firm is verification of the previous 3 years of residency history

Answer 8

False, member firm doesn’t need to verify residency history

> Needs to verify 3 yrs employment but nothing for residency

“Form U4 requires an applicant to provide a 5-year residency history and a 10-year employment history. With regard to the employment history, the member firm must verify the previous 3 years. There is no requirement to verify residency history.”

Question 9

Member firms must keep records on customer complaints for ____

Answer 9

4 years

“Member firms must keep the records on customer complaints for at least 4 years.”

Question 10

T/F: Penalties under the Code of Procedure may include censure, expulsion, suspension, and/or fines but not a prison sentence.

Answer 10

True, no prison sentence

Question 11

If an individual fails a FINRA qualification exam three consecutive times, a fourth attempt may not be made for ____

Answer 11

180 days

“If a qualification exam is failed three consecutive times, a fourth attempt may not be made for 180 days.”

Question 12

You have just received a statement of claim from the director of arbitration. One of your customers is claiming that your failure to follow his instructions led to a loss of $36,000. Under FINRA rules, you must respond within

A)
60 days.
 B)
24 business hours.
 C)
the business day the claim was received.
 D)
45 days.

Answer 12

D) 45 days.

“Under the Code of Arbitration Procedure, a respondent has 45 days to respond to both the director and the claimant.”