Chapter 17 - SRO Requirements for Associated Persons

Question 1

Describes the responsibilities that a firm must follow to conduct business.

Answer 1

Written Supervisory Procedures

Question 2

The result of being convicted of a felony with the previous 10 years.

Answer 2

Statutory Disqualification

Question 3

Document that must be filed with CRD for a person to become registered.

Answer 3

Form U4

Question 4

Must be completed on a person’s second registration anniversary and every three years after.

Answer 4

Regulatory element

Question 5

Provides the reasons for the termination of a previously registered person.

Answer 5

Form U5

Question 6

A previously hired person was convicted of a felony 14 years ago and has served out his sentence in federal prison. If he is now seeking employment as a registered representative, he should be informed that:

Answer 6

He may be hired as a registered representative

Question 7

A person is NOT subject to a statutory disqualification if he:
A) Has been suspended from membership in any SRO
B) Stands accused of stock manipulation
C) Is subject to an order of the SEC which precludes his industry activities
D) Was expelled from a foreign securities exchange

Answer 7

B) Stands accused of stock manipulation