Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Series 24 made by rich > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

The mission of the SEC

A

Is to protect investors, maintain orderly fair and efficient markets and to facilitate capital formation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Finra new member

A

Begins with new member application thru Finra firm gate way. Opens a 180 day application review period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Finra Has Obligation To:

A

Interpret rules, compliance, investigate members and AP’s, dispute resolutions, CRD, EXAMS, membership, Fees, TRF, OTCBB, ORF, TRACE, ADF, Market Data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Broker

A

any person engaged in the business of effecting transaction in accounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

DBA

A

Doing Business as is acceptable provided the name is filled with Finra.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Entitled

A

Satisfy requirement to apply online. Includes notarized form BD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

FORM BD

A

BD’s are required to promptly ( no later than 30days) update form BD whenever form is inaccurate or incomplete,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

FORM CMA

A

Change in Ownership, control or business operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

NASD 1014 Standards for admission

A

Biz plan, org chart, financial projections trial balance, bal sheet net capital comp. Supervisory system. Statement that applicant and AP’s comply with state, fed and finra laws. Clearing and banking, biz facilities Comms, list all AP’s. Form BD , U$ Fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

All Applicants for memberships

A

Except for sole proprietorship must have a t least 2 officers registers as AP’s. Limited to sale of Inv Company products, 2 series 26 qualified people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

DMR issues a written decision within how many days of the premembership interview

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

DMR issues decisions within 30 days to

A

Grant application
Grant with restrictions
Deny

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

FORM BR

A

30 days. to register or notice file their branch offices in the appropriate jurisdiction and/or with SROs
Info : Supervisor in charge, located physically at branch, location, OSJ telephone number . BD or IA, Jurisdication.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

OSJ

A

Finra Requires there be at least one Principle at each OSJ. The rules do not require the PIC to be a principal at all non OSJ branch offices.

Location must be under supervision of OSJ.
Finra notified within 30days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

FINRA or SRO is required by SEC to conduction inspection of newly registered firm with how many months

A

6 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

FORM MC-400

A

member firm wishes to sponsor a person who was permanently barred or convicted of a felony

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Tier 1

A

Member firms successful in petition to employ otherwise disqualified person must pay a fee of $1500 annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Tier 2

A

Member firms successful in petition to employ otherwise disqualified person must pay a fee of $1000 annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If Finra or SEC suspends an AP, the member cannot:

A

Pay salary, commission, profit or any other remuneration that results directly or indirectly from any transaction may have earned during the suspension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Rule 9522

A

Department of member regulation has authority to approve an applicant to remain in a clerical or ministerial capacity. Still nust fiel a form MC-400. can appeal to NAC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Form 4530

A

promptly but later than 30 days a violation of Securities laws. Complaint alleging theft, expelled by another SRO, plead guilty to any criminal offense( no traffic violations), withholding of commissions or fines in excess of $2500. 15k in any securities or commodities fine( 25k if its the member itself)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Form BDW

A

used to withdraw from registration as a broker dealer. Becomes effective on 60th day from filing unless SEC deems necessary to public interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A firm operating under restrictions is required to request and obtain finra approval to remove or modify restriction: Before or After

A

BEFORE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

FORM BD amendments

A

within 30 days, address, phone numbers, ownership, officers, branch openings or closings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

After being expelled by the NYSE, a firm may be granted membership in FINRA if it files FORM BD and a form U-4 for each associated person. True or False

A

False. A firm will statutorily denied member ship if it has been expelled by another SRO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

A restriction agreement prohibiting certain activities of a member firm remain effective through out the life of the firm

A

True. A membership agreement remains in force including any restriction agreement unless the firm changes its line of business and satisfies rules 1014 and 1017

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Member firms are obligated to notify finra after merger with another company

A

False. Membership agreement stipulates that a firm must notify FINRA 30 days prior to an acqusition or merger with another member firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Member firms are obligated to notify finra within 30days if an AP is subject to a customer complaint

A

True Member firms are obligated under rule 4530 to promptly ( no later than 30 days) report an event found to have violated securities lasw or rules of any country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

If a member firm fails to pay fees and assessments in a timely manner, its membership may be revoked or suspened upon 21 days written notice

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How long must a candidate wait if fails a test.

A

Candidate must wait 30 days before retesting Following 3 or more attempts the wait is 180 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Series 6

A

Allows holder to offer investment Company Products and variable contracts BY PROSPECTUS, Includes closed end funds by prospectus only. May only sell as a new issue, once trade on secondary market the need a 7 or 62

32
Q

Series 3

A

Commodity or Futures, both physical and financial futures are not securities.

33
Q

Series 11

A

Sales assistant. Comp must be salary no comms or per transaction…can pay bonuses

34
Q

Series 22

A

DPP

35
Q

Series 57

A

trade equites, OTC equity and Covertible debt

36
Q

Series 62

A

Corporate securities, common stockm preferred stock, bonds and closed end funds

37
Q

Series 86

A

research Analysis and valuation

38
Q

Series 87

A

research rules and regs

39
Q

Series 99

A

Senior managers with direct responsibilty to supervise or manage client on boarding, fund collection, re-investment

40
Q

In how many days register as a principal if a RR is given addtl responsibilities such as supervision, training.

A

90 days or firm and individual subject to finra santctions and fines

41
Q

Series 4

A

options principal

42
Q

Series 26

A

qualifies to sell of investment company products and variable products offered by insurance cvompanies

43
Q

Series 27

A

Prepare firms financials such as FOCUS Part II . the FINOP is responsible to perform the weekly reserve computation, maintenance of books and records. Only principal with no prerequisite

44
Q

Series 79

A

Investment banking

45
Q

Series 51

A

Muncipal fund securities, 529 and local government investment pools

46
Q

Series 53

A

Muni Principal

47
Q

Series 9/10

A

sales supervisor.

48
Q

Series 16

A

analyst for NYSE to approve research for general investing public

49
Q

Series 14

A

Compliance supervisor of 10 or more people

50
Q

NASD RULE 1160

A

requires firms to update contact info promptly but no later than 30 daysand update info theu the FINRA Gateway with 17 bd’s after the end of the calendar year.

51
Q

U-4

A

Name, SS#, Birth date, 10 year history of biz, Residence for 5 years, Denial suspension, Temporary or permanent injunctions, bankruptcy, fidelity bond refusal, alias.

Statutory disqualification within 10 dyas

52
Q

U-4 Marital status

A

Info on marital status or educational background is not required. Original signatures must be obtained with the initial form

53
Q

Employment verification u-4

A

Principal must verify for the prior 3 years. Signed U4 no pre-registration search written consent form is needed

54
Q

AP’s

A

Even outside directors or partners whose only contribution is capital are considered associated persons of the broker dealer.

55
Q

Form u-5 how long for firm to file?

A

Member has 30 days to file after termination. A person terminated/resigns subject to complaint filings for 2 years. Strictly FINRA still subj to state and fed laws

56
Q

Permitted to Resign Box U-5

A

if checked all relevant details must be included. updates must be within 30 days. No time limit on how long after termination an amend U5 is required.

57
Q

U5 review by new employer

A

in addition to getting a new U-4, new employer must review U5 within 60 days. Former employer is not required to provide form U-5 to new employer, 2 business days to provide

58
Q

Licenses good for how long between Employment

A

within 2 years after effective termination date or revocation or cancellation of registration

Except active Military Service. 2 years begins on the date person enters service and will end 90 days after completion

59
Q

Continuing ED

A

Regulatory element
Firm element

120days 2nd registration anniversary and every 3 years after

60
Q

An amendment to form U-4 involving possible statutory disqualification requires submission of an amended form must be made when?

A

10days, other amendments must be done promptly but no later than 30 days

61
Q

If a member learns that info on a U% is inaccurate or incomplete, it must file an amended form U5 when?

A

with in 30 days

62
Q

A stock exchange that wishes to join finra must submit form BD to where?

A

application made to FINRA district office where applying firm has its home office

63
Q

Finra members that hold customer funds or securities must supply to their customers at least once per calendar year

A

Broker Check hot line number, Finra website and access information regarding their investor brochure

64
Q

Foreign associates of a member firm who are non citizens and who conduct business outside the united states must

A

be registered with Finra but are exempt from passing a qualification exam

65
Q

A member firm may grant discounts, concessions or other allowances to…..

A

be registered with finra but are exempt from passing a qualification exam to other members but an exception is allowed for foreign non members/

66
Q

A registered person leaves industry and 18 months later reassociates with another member. This persons cycle for determining dates for the RE of continuing ed is based on…..

A

Provided reassociation occurs within 2 years, the cycle for determining the dates for the RE is based on initial registration. After 2 years, the cycle is based on the reassociation date.

67
Q

Before signing FORM U4, a principal must verify the applicants employment history for the previous…..

A

U4 requires 5 year residency and 10 year employment history….but principle bust verify thru writing or on the phone 3 years.

68
Q

under FINRA rules, amendment to form BD must be made within

A

within 30 days of any change.

69
Q

Under FINRA rules which of the following must be registered as Principals

A

Managers of OSJ’s and officers must be registered as principles

70
Q

a member firm may join with a nonmember in underwriting exempt and non exempt securities….True or False

A

False

Only FINRA members can be part of a group underwriting nonexempt securities. Nonmembers can join with members in underwriting exempt securities

71
Q

Under FINRA rules, a registered rep must complete the regulatory element of continuing ed within how many days of a registration anniversary date?

A

120 days

72
Q

A member firm files FORM U5 with FINRA for a former employee. 2 years later the member learns of facts that would cause the information filed to accurate. Under FINRA rules. the member must file an amended form U% with how many days?

A

30 days

73
Q

Which of the following statements regarding various forms are correct?
1 Form ADV is used to terminate an AP
2Form MC-400 is used when employing a statutorily disqualified individual
3 FORM U5 is used to register an IA with the SEC
4 Form u4 is used to register an AP

A

2 and 4

74
Q

Where is the Broker Check program located ?

A

CRD Central Registration Depository

WWW.FINRA.org

75
Q

FINRA member firm’s executive representation must be:

A

Individual must be a member of the firms senior management
Individual must be registered as a principal
Changes made to executive representation must be noted in writing to FINRA

76
Q

The Code of arbitration would handle….

A

Disputes involving a member and the public if brought by the public customer

77
Q

If a member wishes to merge with another member, finra must be notified

A

at least 30 days pror to the closing date

Series 24 made by rich (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions