Ch 4 Deck 2 Flashcards
When a rep is terminated, the firm must let FINRA know by
filing a U-5 form
A U-5 form must be filed within
30 calendar days of the termination
a U-5 form Must contain
the reason for the termination.
The rep must receive a copy of the U-5 form within
(Class says 30) (book says 60) days of the termination
Even after a rep or member has had their license revoked or cancelled, FINRA has jurisdiction over the rep or member up to
2 years after their registration is no longer effective.
During the period of jurisdiction after a reps member or license is revoked, The rep must notify FINRA with
address changes
Employees may register with FINRA only if sponsored
by a FINRA member.
Persons exempt from FINRA registration include those who have jobs that are
clerical
Persons exempt from FINRA registration include those who are limited
partners and are not involved in the everyday business
Persons exempt from FINRA registration include those who only transact
in municipal or commodities transactions do not have to register with FINRA, but must register elsewhere.
Persons exempt from FINRA registration include those who are registered
as floor members of an exchange
A candidate who fails an exam can take it in another
30 days.
The candidate is allowed 3 attempts at passing an exam, and then must wait
180 days before taking it again
A rep must re-take an exam if
their license lapses for more than 2 years
AND
they wish to return to the industry
A reps license can lapse by being
withdrawn, revoked or terminated
Members cannot associate with
“ineligible members” or “ineligible persons”
Members can associate with “ineligible members” if
the FINRA board has granted a relief.
Continuing education requirements include
Regulatory Element
Firm Element
Regulatory Element—Reps must initially take a FINRA sponsored training session within
120 days of the rep’s 2nd anniversary
Regulatory Element—after their initial training session, Reps must subsequently take a FINRA sponsored training session
every three years after
If reps leave the industry and return within 2 years, their CE deadline is based on
their initial registration date before they left
If reps return after 2 years, their CE deadline is based on
their return date
If a rep does not fulfill the regulatory element, their license will not be active until
they fulfill the requirements.
Firm Element—Member firms must prepare an
annual training plan for their reps.
Firm Element - firms may choose the content, but it should be relevant to
developments in the industry
firm needs.
Who must participate in Firm Element training?
All Registered Reps
Fingerprinting is required for all employees that sell
securities
Fingerprinting is required for all employees who regularly have access to the keeping, handling, or processing
securities
money
original books and records relating to securities or money
Fingerprinting is required for these job descriptions
RR PODX BD T&A
Registered reps Registered clearing agents. partners officers directors those associated with national exchanges broker-dealers transfer agents
