Chapter 9

Question 1

4 components of regulation BI

Answer 1

Disclosure , care, conflict of interest, compliance

Question 2

How often should a customer receive form CRS

Answer 2

Prior to new account opening , at the time of making a recommendation ,

Question 3

Record keeping requirement for form CRS

Answer 3

6 years from last use for BD and 5 years for IA

Question 4

How long can a hold be placed on account of fraud is suspected for exploited senior

Answer 4

15 days plus additional 10 days if firm believes the customer is being exploited

Question 5

Record keeping requirement for a Complaint on RR

Answer 5

4 years

Question 6

Any printed or electric communication directed only to institutional investors

Answer 6

Institutional communication

Question 7

Any printed of electronic communication directed to more than 25 retail investors in any 30 day period

Answer 7

Retail communication

Question 8

Any party other than an institutional investor. All individuals including accredited individuals

Answer 8

Retail investor

Question 9

Retail communication that is distributed via mass media. BD has no control over audience. Ex: news paper ad, commercials on tv, or radio

Answer 9

Advertising

Question 10

All retail communication is required to be filed with FINRA within what time frame

Answer 10

Within 10 business days after first use

Question 11

Record keeping requirement for retail communication

Answer 11

3 years from last date of use

Question 12

Type of retail communication where BD controls the distribution of the material. Provided to targeted audience such as group emails text messages and form letters to more than 25 prospects. Research reports and brochures are examples

Answer 12

Sales literature

Question 13

Written or electronic communication that is targeted to one individual. Can be sent to fewer than 25 retail customers

Answer 13

Correspondence

Question 14

Communications with no real time dialogue

Answer 14

Static communication

Question 15

Communications that have real time dialogue with third parties

Answer 15

Interactive communication

Question 16

Any person violating interstate commerce rules is subject to ?

Answer 16

Civil liabilities

Question 17

Recordkeeping requirements for CTR, SAR, CRS for IAs

Answer 17

5 years

Question 18

Recordkeeping requirements for correspondence and communication including emails messages records of gifts

Answer 18

Three years

Question 19

Recordkeeping requirements for customer account records waters municipal complaints POE’s form CRS for broker-dealers

Answer 19

6 years

Question 20

Recordkeeping requirements for articles of incorporation partnership agreement board meeting minutes stock certificate books amendments

Answer 20

Life +3

Question 21

FINRA reporting requirement for member firms to report specified events

Answer 21

No later than 30 days after the firm concluded the violation

Question 22

Associated person must probably disclose required information on form U 4 with respect to

Answer 22

Any customer complaint, examination, or inquiry

Question 23

Set out the rules for settling monetary related disputes in the securities industry.

Answer 23

Code of arbitration