2. Registration of Associated Persons (APs) Flashcards
This type of alcohol-related traffic violations is subject to FINRA statutory disqualification
Felony-level DWI
Note - in many cases first offenses for DWI do not rise to felony level
A S24 principal does not jurisdiction over these types of activities
Options (ROP) and financial / operations (FINOP) activities
The principal responsible for supervising a BD’s options business is
A registered options principal (ROP, Series 4)
The principal responsible for supervising a BDs financial responsibilities such as meeting the net capital requirement is
A Financial & Operations principal (FinOp, Series 24)
The persons to whom a firm’s chief compliance officer (CCO) may delegate responsibility for compliance oversight include
NONE. This responsibility cannot be delegated by the CCO
The four types of activities that require a partner, director, officer or employee of a BD to be fingerprinted are
SAAS
- SELLING securities
- Having ACCESS to securities or cash
- Having ACCESS to original books and records
- SUPERVISING any of these activities
An unregistered, non-supervisory employee of a BD who does NOT sell securities must be fingerprinted if he/she
has access to securities, cash or the firm’s original books and records
A BD must store fingerprint cards in an easily accessible place in this location
The BD’s Principal Office (Not necessarily its OSJ)
The period of time BDs must retain fingerprint records after a registered rep leaves a firm
three years following departure; two years in an easily accessible place
If a registered rep resigns while under investigation by his/her firm, the firm is required to
continue the investigation and, if necessary, update the rep’s Form U5 with the results
For a terminated rep, BD report results of investigations on this form
U5
Reps who leave the securities business are subject to FINRA jx and must make sure their FINRA files are accurate for this period of time after they leave
Two years
This is the period of time reps remain subject to FINRA jx after leaving the business (i.e. would need to notify of address changes w/in 30 days inside of this two year period)
When registered persons are required to complete regulatory element continuing education requirements
Annually
For a NEW registered rep, the first FINRA regulatory element CE requirement must be completed by
December 31st and every year thereafter
The content of a firm element continuing education program is created by
Each BD, based on its specific needs and business lines
A BD is advised to design its firm element CE program by considering factors such as
Scope of business
Size and structure of firm
Products and services offered
New regulations
Customer complaints
Regulatory exam results
The only permissible excuse for not participating in FINRA-required CE training is
Active military service
An individual who has been FINRA registered for three years is called into active military service for one year. The impact this will have on timing of CE requirements is
The obligation is suspended (“tolls the time”) for one year (or time of deployment). After military service ends, the individual has a 90 DAY grace period
The two components that comprise FINRA CE requirements
Regulatory element
Firm element
Form that must be filled to apply for RR FINRA registration
U4
Form that terminates RR FINRA registration
U5
Number of days a firm has to provide written notification of the termination of a representative to FINRA
30 days
Waiting period required before a second attempt on a FINRA qualification exam
30 days
Waiting period required after three unsuccessful attempts on a FINRA qualification exam
6 months
