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SIE > Ch. 17 > Flashcards

Ch. 17 Flashcards

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SIE Exam flashcards
1
Q

If a trainee fails a FINRA exam on the third attempt, he must wait ___ days to re-test.

A

180 days

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2
Q

Candidates who have failed a qualification exam once must wait ___ days before retaking the exam.

A

30 days

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3
Q

True or False: The FINOP is responsible for the accuracy and final approval of a BD’s financial reports.

A

True. The FINOP is responsible for operations department activities and the preparation of financial reports.

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4
Q

True or False: Every registered employee must be assigned to a principal.

A

True

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5
Q

If an employee is qualified with a Series 82, what can he sell?

A

Private placements as part of a primary offering

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6
Q

What is the appropriate registration designation to supervise investment company sales, but not stock trades?

A

Series 26

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7
Q

True or False: A general securities principal is responsible for financial reporting.

A

False, a Financial and Operations Principal performs that function.

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8
Q

May a Series 6 registered person engage in option trades?

A

No

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9
Q

Mary has been an RR for nine years. When is she next subject to the Regulatory Element of Continuing Education?

A

In two years, on the 11-year anniversary of her initial registration

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10
Q

True or False: By passing the SIE Exam, an individual is permitted to act as a registered representative.

A

False. Candidates also need to pass another exam (e.g., Series 7) based on their job responsibilities.

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11
Q

When must RRs complete the Regulatory Element of Continuing Education?

A

On the 2-year anniversary of their registration and every 3 years thereafter.

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12
Q

If an employee is qualified with a Series 52, what activities are permitted?

A

Underwriting, selling, and trading of municipal bonds

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13
Q

Those qualified as municipal RRs (Series 52) may sell, trade, or underwrite municipals, but may not ____________ sales.

A

May not supervise sales

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14
Q

When must a registered person complete the Regulatory Element of the CE requirement?

A

Two years after her initial registration, and every three years thereafter

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15
Q

If a registered person joins the military, what is her registration status?

A

She falls under the special inactive status designation.

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16
Q

What exam must be passed in order to be registered at the state level?

A

Series 63, 65, or 66

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17
Q

True / False: A registered employee of a BD is required to be fingerprinted.

A

True

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18
Q

What is the appropriate registration designation to supervise investment banking, market making, advertising and sales?

A

Series 24

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19
Q

If an employee is qualified with a Series 50, what can he do?

A

Perform the services of a municipal advisor

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20
Q

True or False: Firm Element Continuing Education requires BDs to update employees on job and product-related subjects.

A

True

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21
Q

True or False: Municipal securities representatives may sell municipal bond funds.

A

False; Municipal representatives may only sell individual municipal bonds.

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22
Q

What is the appropriate registration designation to supervise the municipal activity for a BD?

A

Municipal Securities Principal (Series 53)

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23
Q

True or False: The acceptance of customer orders must be done by a registered employee.

A

True

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24
Q

Describe a Principal.

A

Officers, managers, or supervisory personnel who are involved in the day-to-day management of a member firm’s business.

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25
Q

What is the role of the FINOP?

A

To be solely responsible for the financial operations of a broker-dealer

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26
Q

True or False: All employees of a BD are required to be fingerprinted.

A

False. Clerical employees are not fingerprinted if they do not handle customer accounts, assets, or books and records.

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27
Q

True or False: A RR who fails the Regulatory Element of CE is allowed to work for a B/D in an unregistered capacity.

A

True. However, the RR may not work in a registered capacity.

28
Q

Registration status becomes __________ if the Regulatory Element of CE is not completed within the prescribed period.

A

Inactive

29
Q

Who is responsible for approving the accuracy of a BD’s financial reports?

A

The Financial and Operations Principal (FINOP)(Series 27)

30
Q

True or False: Firms are responsible for investigating the qualifications and experience of applicants for registration.

A

True

31
Q

If an employee is qualified with a Series 79, what can she do?

A

Investment banking functions

32
Q

What two types of securities registrations would allow an individual to offer variable annuities?

A

Series 6 or Series 7

33
Q

True or False: It is acceptable to disclose the content of a qualifying exam to a co-worker.

A

False

34
Q

How often are firms required to evaluate their training needs?

A

Annually

35
Q

What is the appropriate registration designation to supervise sales, but not investment banking?

A

Series 9 and 10

36
Q

Series ____ or Series _____ will qualify an individual to sell municipal securities.

A

Series 7 or Series 52

37
Q

What are the justifiable reasons for denying an individual’s registration?

A

Conviction for any felony or securities-related misdemeanor within the last 10 years

38
Q

What information does the Central Registration Depository (CRD) system provide about a registered person?

A

Employment and disciplinary history

39
Q

Identify the acronym: CRD

A

Central Registration Depository

40
Q

If a trainee fails a FINRA exam on the first attempt, he must wait __ days to re-test.

A

30 days

41
Q

True or False: RRs currently serving in the military can receive a CE waiver.

A

True

42
Q

If an employee is qualified with a Series 6, what can he sell?

A

Investment companies (mutual funds), variable annuities, and 529 plans

43
Q

True or False: An RR who served in the military must retake the Series 7 when he rejoins his broker-dealer.

A

False. An RR who served in the military is put into special inactive status and is not require to retest.

44
Q

May a Series 6 registered person engage in the sale of individual stocks or bonds?

A

No. Series 6 RRs may only sell packaged products, such as mutual funds and annuities.

45
Q

Firm Element continuing education is subject to ______________ to show completion, but not ________ with FINRA.

A

Recordkeeping but not filing with FINRA

46
Q

List the broker-dealer employees who need to be fingerprinted.

A

Salespersons, employees who handle money or securities, and anyone who deals with records of original entry

47
Q

How many days are representatives given to complete the Regulatory Element of Continuing Education?

A

120 days

48
Q

Who supervises a registered representative (RR)?

A

Supervising principal

49
Q

If an employee is qualified with a Series 7, what can she sell?

A

Corporate stocks, bonds, and options, investment companies (mutual funds), variable annuities, DPPs, and 529 plans

50
Q

Who supervises a firm’s municipal activities and provides account approval, transaction review, and complaint handling?

A

Municipal Securities Principal (Series 53)

51
Q

True or False: A registered person with no disciplinary actions for 15 years is excused from the Regulatory Element.

A

False. The Regulatory Element of Continuing Education is an ongoing process with no graduation from the plan.

52
Q

What is the purpose for obtaining a Series 9/10 or Series 24 registration?

A

The Series 9/10 or 24 the registrations required for supervising registered representatives.

53
Q

True or False: Only registered personnel are required to be fingerprinted.

A

False. Any individuals handling funds or securities are required to be fingerprinted.

54
Q

May an RR disclose Series 6 examination content to his supervisor?

A

No. Disclosure of exam content may invalidate the result.

55
Q

What is the continuing education (CE) requirement of an RR who is currently serving in the military?

A

His registration is in Special Inactive Status and the CE requirement is halted.

56
Q

If a qualification exam has been failed for the third time, what waiting period applies?

A

180 days

57
Q

True or False: All registered personnel of a BD must complete the Regulatory Element of Continuing Education.

A

True

58
Q

True or False: The FINOP is an employee who is solely responsible for the financial management of a BD.

A

True

59
Q

How often must a BD’s Firm Element Continuing Education program be reevaluated?

A

Annually

60
Q

What is the CRD system?

A

A system that pools information concerning the employment and disciplinary histories of registered persons

61
Q

If an employee is qualified with a Series 57, what can he do?

A

He can run a broker-dealer’s proprietary trading (e.g., a broker-dealer making a market on Nasdaq or the OTC markets).

62
Q

What is the CRD?

A

The Central Registration Depository (CRD). CRD is FINRA’s database for member registrations.

63
Q

What licenses are required for an agent to sell variable annuities or variable life?

A

Both a life insurance license and FINRA Series 6 or 7 license is required

64
Q

Who meets FINRA’s definition of associated person?

A

Officers, directors, partners, branch managers, and employees who are engaged in sales or investment banking

65
Q

What is an RR’s concern if her client moves to a new state?

A

Ensuring that the RR is properly registered in the new state (Uniform Securities Act)

66
Q

Describe a registered representative.

A

Sales personnel who are engaged in securities business activities

SIE (20 decks)

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