Important Timelines

Question 1

settlement day for cash

Answer 1

Same Day

Question 2

Regular way settlement for U.S. Government securities and options

Answer 2

T+1

Question 3

Regular way settlement for Municipal and corporate securities, and Mutual Funds

Answer 3

T+2

Question 4

amount of time specific financial information for a mutual fund can be used in a prospectus

Answer 4

16 months

Question 5

max time customer can place options before signed option agreement required

Answer 5

15 Days

Question 6

How long is the cooling off period?

Answer 6

20 Calendar Day

Question 7

Statue of limitations for fraud

Answer 7

5 Years from violation or 2 from Discovery

Question 8

Statute of Limitations for Securities Violations

Answer 8

Federal - 3 Years from violation/1 From Discovery. State - 3 Years from violation/2 From State

Question 9

Retail/Correspondence Communication

Answer 9

25 retail investors within 30 days/Less than 25 within 30 days

Question 10

Copies of retail comm. must be filed with FINRA ?

Answer 10

<1 Year - at least ten days before use. >1 year, within 10 days of first use

Question 11

How old can the company’s do not call and FTC Do not call lists be?

Answer 11

No more than 30 days old

Question 12

Account record requirements?

Answer 12

Furnish a copy within 30 days. Updated account within 30 days notification, at least every 3 years

Question 13

Account statement requirements?

Answer 13

At least every quarter

Question 14

What regulation requires privacy notice at relationship establishment and annually?

Answer 14

Regulation S-P

Question 15

What is on the Form U4

Answer 15

5 year residency and 10 year employment history. Any statutory disqualifications must be filed within 10 business days. Any standard changes must be filed with central registration depository no later than 30 days after member is made aware.

Question 16

Form U5

Answer 16

within 30 days of termination/resignation. Two years jurisdiction for FINRA and regulators. No need to requalify within the 2 years

Question 17

The SIE is good for?

Answer 17

4 Years

Question 18

How does military service affect registration?

Answer 18

Special inactive service until 90 days after leaving service. Two years start at the end of the 90 days

Question 19

Statutory disqualification

Answer 19

felony conviction or misdemeanor conviction involving securities or money within the past 10 years

Question 20

SIPC coverage

Answer 20

must be given to new customers at the account opening and once each year thereafter

Question 21

Contemporaneous traders

Answer 21

may bring a suit against an insider trader up to five years after the violation

Question 22

Temporary Holds on disbursements and review of financial exploitation

Answer 22

can be no longer than 15 days and notification must be sent no later than two days after the hold started

Question 23

Firm Partnership agreement or corporate charter, and BOD meeting minutes

Answer 23

must be held for the life of the firm

Question 24

Stock records, general ledger, and customer account records

Answer 24

Must be held for 6 years

Question 25

SAR Records

Answer 25

must be held for 5 years

Question 26

Written complaints records

Answer 26

must be held for 4 years

Question 27

Report listing all written complaints is filed with FINRA

Answer 27

within 15 days of the end of each calendar quarter

Question 28

what is the penalty for freeriding?

Answer 28

account frozen for 90 days

Question 29

Regulation Crowdfunding

Answer 29

Investors cannot sell securities for 12 months and companies can raise up to $5M

Question 30

SEC Customer Protection Rule

Answer 30

stock in a valid transfer location is considered a good control location for a maximum of 40 days

Question 31

Requirement to open a Coverdell ESA. also, how long does the person have to withdraw the funds after they turn 30?

Answer 31

Child must be under 18 and 30 days

Question 32

Customer Protection Rule

Answer 32

BD must make a deposit no later than 2 days after the date of calculation

Question 33

IRA Rollovers have a time limit of

Answer 33

60 DAYS

Question 34

Mutual Funds and Margin

Answer 34

cannot be bought on margin but can be used as collateral after being held for 30 days

Question 35

Customer Relationship Summary (CRS)

Answer 35

must be delivered before the earliest of entering into an investment advisory contract or the opening of a brokerage account for the retail investor

Question 36

Customer must pay for purchases in accordance with Reg T within

Answer 36

4 business days

Question 37

Which Act deals with Misusing nonpublic information

Answer 37

Securities and Exchange Act of 1934

Question 38

Cash value of variable annuity required to be calculated

Answer 38

at least monthly

Question 39

Letter of Instruction (LOI)

Answer 39

13-month window begins date of original purchase and can be backdated 90 days

Question 40

Companies are required to notify FINRA of corporate actions

Answer 40

10 days prior to the record date

Question 41

Review of unusual activity must be maintained for

Answer 41

18 months

Question 42

Performance stats in a mutual fund prospectus must be updated every

Answer 42

12 months

Question 43

Ex date for Stocks/Mutual Funds

Answer 43

Day before Record Date/Day after Record Date

Question 44

Face amount certificates have a maturity of at least

Answer 44

24 months

Question 45

FINRA members must report violations within

Answer 45

30 days

Question 46

An issuer with average DTV of at least $100K and $25M in public float has a restriction period of

Answer 46

1 Day

Question 47

The purchase of an equity option settles on __ and the exercise of an equity option settles on __

Answer 47

T+1 and T+2

Question 48

To qualify as a conduit, a mutual fund must pay out a minimum of?

Answer 48

90% of net income