Ch 4 Deck 1

Question 1

All firms must be registered “members” of FINRA who

Answer 1

conduct securities transactions

Question 2

Who regulates the securities industry.

Answer 2

Both the SEC and FINRA (as well as a few other SROs)

Question 3

FINRA writes

Answer 3

rules for the securities industry

Question 4

FINRA Enforces

Answer 4

securities regulations and laws within the securities industry

Question 5

FINRA Trains

Answer 5

Securities Professionals

Question 6

FINRA Oversees

Answer 6

member firm compliance

Question 7

FINRA handles dispute resolution between

Answer 7

members, representatives and customers

Question 8

“Associated person” is

Answer 8

a natural person who is registered at a member firm

Question 9

“Associated persons” includes

Answer 9

registered reps
partners
officers
directors

Question 10

Broker-dealers (BDs) must register with FINRA through Form

Answer 10

BD

Question 11

Must register BD in state where

Answer 11

home office is located

Question 12

A “representative” is also an

Answer 12

associated person

Question 13

A “representative” is an associated person who is

Answer 13

engaged in the investment banking or securities business for a member

Question 14

activities of investment banking or securities business that representatives are engaged in include

Answer 14

supervision
solicitation
conducting securities business

Question 15

A BD’s registered reps must register in

Answer 15

the states that they conduct business

Question 16

Registration package for registered reps is required for

Answer 16

every person who will be registered (those who will be conducting securities transactions)

Question 17

Registration package for registered reps includes

Answer 17

U4
fingerprints
fees

Question 18

U4 form must list basic info

Answer 18

Name and social security #

Question 19

U4 must list employment history for

Answer 19

10 years

Question 20

U4 must list bad background of

Answer 20

criminal convictions
guilty pleas
pleas of no contest

Question 21

U4 must list financial background of

Answer 21

Bankruptcy
Compromise with creditors
Past 10 years

Question 22

Updates to U4 must be submitted within

Answer 22

30 calendar days of relevant change

Question 23

U4 must be updated for these against the broker

Answer 23

complaints

Question 24

U4 must be updated for these involving the broker

Answer 24

settlements

Question 25

U4 must be updated for these problems with broker

Answer 25

Criminal charges and convictions

Question 26

U4 must be updated if these actions are taken against the broker

Answer 26

Regulatory actions

Question 27

U4 must be updated if this happens to the broker

Answer 27

termination of the representative

Question 28

Amendments to form BD must be made within

Answer 28

30 days of the change being reported in amendment

Question 29

examples of form BD amendments are

Answer 29

address change
opening offices
closing offices

Question 30

Must designate on form BD a principal to serve as

Answer 30

Chief Compliance Officer

Question 31

On form BD, CEO must certify that supervisory processes are

Answer 31

in place
reviewed
maintained
tested

Question 32

FINRA must give its answer to a form BD registration within

Answer 32

45 days