Chapter 1

Question 1

When does the 2 year License Expiration period begin for a Registrant on Active Military Duty?

Answer 1

It begins on the date the person enters active military service.
It ends 90 days after that person’s completion o factive service.

Question 2

Can someone on Active Military service receive commissions for account activity?

Answer 2

Yes

A BD may make arrangements for someone to cover the book of business and set up a Commission sharing arrangement.

Question 3

Which type of historical information is required on Form U-4?
X Residential History and
X Employment History

Answer 3

5 years Residential History

10 years Employment History (3 years must be verified by a principal)

Question 4

Under FINRA Rules, a RR must complete the regulatory element of con ed within how many days of a registration anniversary date?

Answer 4

120 days within their 2nd anniversary date and every 3rd anniversary thereafter.

Question 5

If an individual fails a FINRA qualification exam 3 consecutive times, a 4th attempt may not be made for

Answer 5

If a qualification exam is failed 3 consecutive times, a 4th attempt may not be made for 180 days.

Question 6

Can a BOM (or person in charge of a small branch) approve the New Account Forms?

Answer 6

Yes -

New account forms may be approved by the BOM (or person-in-charge of a small branch) and affirmed by the ROP and municipal securities principals who are “on-site principals” at an OSJ designated to supervise that registered branch office. The initialism OMSJ is used by the Municipal Securities Rulemaking Board meaning office of municipal supervisory jurisdiction.

Question 7

Allegations of Forgery, Theft, or a settlemtn for more than $15,000 involving an individual require what kind of notification with FINRA?

Answer 7

Prompt Filing with FINRA

Question 8

A member firm fails to pay an arbitration award within the prescribed time frame. FINRA may revoke the member’s registration after giving

Answer 8

21 days written notice

30 days to Pay / 21 Days notice to suspend membership

Question 9

FINRA will base its annual dealer Assessments on:

Answer 9

Securities Transactions

Assessments, as opposed to fees, are made against revenue generated from securities transactions.

Fees are based on number of branches and registratns