Chapter 5 Flashcards
Chapter Crunch
FINRA typically reviews new member (firm) applications within ________ . If rejected, the applicant may file a written request for review of the membership decision with FINRA’s National Adjudicatory Council within _________
within six months
Within 25 days
Form U4 requires a ___________ of employment/bankruptcy and a______ residential history.
10-year record
five-year
Being indicted or charged for a crime is not grounds for ________
statutory disqualification
Form U4 requires all felony convictions to be recorded ________
regardless of the time that’s elapsed.
If FINRA allows a firm to sponsor a statutorily disqualified (SD) individual, the firm is required to institute:
heightened supervisory procedures
The heightened supervisory plans should be in _______, acknowledged by the RR in _________, supervised by a designated principal, and be _____ to the nature of concerns and the RR’s activities
writing, writing, tailored
If a firm institutes a drug test for its RRs and an RR fails, this is ___________ to FINRA and it’s _______________. Instead, this is a matter between the employee and the firm.
NOT a reportable item
not grounds for statutory disqualification
If an associated person’s fingerprint card is ineligible ________ times, the FBI will conduct a _________ based on the associated person’s name (Name Check), rather than on the fingerprints submitted. This is done to verify whether the database contains criminal history record information
three
name search of its database
Hard copies of fingerprint cards must be retained for
three years
All cashiering and vault personnel of a member firm must be
fingerprinted
If foreign nationals or foreign residents are hired by a U.S. brokerage firm, they’re subject to the ______ requirement as U.S. residents
same fingerprint
If a foreign national is hired as the CEO of a broker-dealer and this person will have no sales supervisory responsibilities, will not be involved with customers, and will not be involved with the firm’s books and records, she must be added to ________ and is required to be __________. Additionally, she may be
registered via ____________ without being required to take an exam
Form BD
fingerprinted
Page 2 of Form U4
An RR who collects or receives a fee for selling variable annuities is not required to register as a
as an investment adviser
To offer wrap accounts, an RR who’s qualified with a _____ registration is also required to be registered with a ______ registration
Series 7
Series 65 or 66 (Investment Adviser designation)
If an RR serves on the board of directors for a non-profit organization, disclosure is _____. However, the __________ of the RR’s firm may require such disclosure
NOT required
in-house rules
If an RR obtains a real estate license, it’s considered an _____________ and must be:
outside business activity
disclosed on Form U4
If a current RR is discovered to have a real estate license that was not disclosed on his Form U4, the form must be__________. Additionally, the employing firm could impose
must be updated within 30 days
significant consequences, including heightened supervision, fines, or termination.
Form U5 must be retained for _________ after an RR leaves the firm
three years
If a registered representative was fired from one firm, but then joins another firm, the new firm must review:
the individual’s Form U5 within 60 days
A firm has an ____________obligation to amend a Form U5 (no time limit).
ongoing
Form U6 (Uniform Disciplinary Action Reporting Form) is used by ______ to report disciplinary actions against broker-dealers and associated persons (including Code of Procedure and/or Code of Arbitration proceedings)
SROs, regulators, and other jurisdictions
Broker Check information can be __________ through a Broker Comment Request Form
amended by an RR
BrokerCheck lists a person’s _________ (including outside business activities), other registrations held, and ____________
employment history
disciplinary actions.
FINRA members must provide customers with an annual disclosure which contains the FINRA BrokerCheck ______ and FINRA’s _______
hotline
website address.
A RR can function as a principal for up to __________ before being required to pass a principal qualification exam. However, before acting as a principal, the RR must have ________________
120 calendar days
18 months of experience within a five-year period
The firm’s AML officer is NOT required to be
registered
A brokerage firm’s Chief Compliance Officer supervises the sales activities of a _____________ of the firm
managing partner/director
The appropriate person to supervise a producing branch manager is a
principal who doesn’t report to the producing manager
An associated person of a foreign broker-dealer may visit with U.S. clients if he’s chaperoned by a:
registered person of a U.S. broker-dealer
A regional manager is typically allowed to supervise
a branch office manager (BOM)
A firm’s AML written procedures are _________ to be filed with a regulator.
NOT required
A firm’s AML reports are _________ to be filed with the Department of the Treasury
required
If a broker-dealer transmits funds through wire transfers of__________ , it must collect information on the ___________.
$3,000 or more
recipient and the transmitter
A single-location firm’s Business Continuity Plan (BCP) should contain contact information for
clearing-firm personnel
One of the ___ contact persons included in a firm’s BCP must be a:
two
registered principal (there’s no requirement for them both to be registered principals).
___ person is permitted to oversee multiple OSJs; however, this is typically a ______ situation and the reason must be _____ in the firm’s ____
One
temporary
documented in the firm’s WSP
An amended ________ must be filed within _____________________
Form BR
30 days of moving a branch location
If a bank allows an RR to meet with banking clients on bank premises for one day, the bank is considered an _________. If any clients decide to open accounts with the representative, they’re required to sign a:
office of convenience
disclosure which indicates that investment products are not bank obligations
