18: COMPLAINT RESOLUTION (46) Flashcards

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1
Q

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

A

Arbitration

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2
Q

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

A

statutory discrimination claims

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3
Q

Statutory discrimination claims

A

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

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4
Q

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

A

FINRA manual

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5
Q

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

A

The principal

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6
Q

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

A

4 years

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

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7
Q

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

A

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.”

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8
Q

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

A

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.”

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9
Q

Member firms must keep records on customer complaints for ____

A

4 years

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

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10
Q

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

A

True, no prison sentence

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11
Q

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

A

180 days

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

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12
Q

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.
A

D) 45 days.

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

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