Chapter 1

Question 0

How many years does a statutory disqualification last?

Answer 0

10 years

Question 1

Who regulates OTC non exempt securties?

Answer 1

FINRA. And the SEC

Question 2

Series 6 can sell closed end funds when?

Answer 2

At new issue.

After 2nd mkt 7 or 62 is required.

Question 3

Are commodities futures securities?

What series must you have to trade them?

Answer 3

No

3 or 31

Question 4

Series 11
What can be performed?
What can the person not do?

Answer 4

1. Unsolicited orders, update information, account forms.

2. No recommendations no soliciting business.

Question 5

Series 22

What can be done with it?

Answer 5

Limited Partnerships

Question 6

Series 52

What can be done with it?

Answer 6

Municipal Securities

529’s

Question 7

Series 55

What can be done with it?

Answer 7

Trader can trade oTC securities.

Nasdaq mkt makers and Proprietary Traders

Question 8

Series 62

What can be done with it?

Answer 8

Corporate securities only. Also sell closed end funds

Question 9

Series 24
What is it?
What does it do?

Answer 9

General Securities Principal

Everything even approve add material.

Question 10

Series 4
What is it?
What does it do?

Answer 10

Registered Options Principal

Supervise members of options business.

Question 11

Series 26
What is it?
What does it do?

Answer 11

Inv Company Products Variable products Principal.

Question 12

Series 27
What is it?
What does it do?

Answer 12

Financial and operations principal

Supervise prep of financial reports and filings with SEC FINRA

Question 13

Series 51
What is it?
What does it do?

Answer 13

Supervise municipal business. Limited principal

529. / Bonds

Question 14

Series 53
What is it?
What does it do?

Answer 14

Muni Principal

Supervise all Activities

Question 15

Series 9 10
What is it?
What does it do?

Answer 15

General Securities Supervisor

Cannot oversee
Investment Banking 
Trading
Market making 
Approve advertising

BOM of NYSE

Question 16

Series 14
What is it?
What does it do?

Answer 16

Compliance Officials

10 or more people

Question 17

What are the policies and procedures for Rule 3012?

Answer 17

Transmittal of Funds
Change of ownership
Outside entities
Any where other than customers residency

Change of Address
Investment Objectives

Question 18

What are the rules for correspondence?

Answer 18

Must have proceed in place for Pre or Post.
Must retain for 3 years.
If post must have education policy.

Question 19

What are the filling requirements for sales literature?

Answer 19

Date of use
Name and title of who approved
Date approval was given

Question 20

Advertisement and Sales lit that is 10 days prior to use? PRE

Answer 20

CMO
Options
Security futures
Rankings that are not recognized

Question 21

Advertisement and Sales lit that is 10 within use? POST

Answer 21

Inv company material
DPP
Government securities

Question 22

What are the requirements of a repurchase agreement?

Answer 22

in writing
exempt securities
time and price are specified

Question 23

OBA when is permission not required?

Answer 23

In a Limited Partnership where the FA has no management role.

Question 24

Does FINRA requirer permission to enter into contracts with employees of other members?

Answer 24

NO

Question 25

What is the fine for a MRV not to exceed?

Answer 25

2500

Question 26

What are lifetime Records for SEC 17a-3 and 17a-4

Answer 26

``` Partnership Articles Articles of Inkoprtation Minute Books Stock Cert Books Form BD ```

Question 27

what are the 6 Year Records for SEC (6 total)

Answer 27

``` Blotter General Ledger Stock Record Customer Complaints Muni Customer Ledgers Customer Account Records Principal Designation Records ```

Question 28

What are the 3 year records with the SEC?

Answer 28

``` Adds FOCUS reports Trial Balances u4 & U5 Customer confirmations Order Tickets Subsidiary Ledgers Compliance/ Supervisory manuals ```

Question 29

What are the 5 year records with the SEC?

Answer 29

Form 104 SAR filings Records related to customer id

Question 30

What are the 4 year records with the SEC?

Answer 30

Customer Compliants