Dates, Times, Abbreviations Flashcards
FINRA must be notified _______ days prior to the effective date of a statutory subordinated loan
30 days
For how long must a broker dealer maintain institutional sales material?
3 years
What is the maximum criminal penalty for an individual convicted of insider training?
$5 million fine and or up to 20 years in prison
True or false: a temporary location used less than 30 days per year is a branch office
False
If use less than 30 days per year at temporary location is a non-branch office (vacation home)
When is FOCUS report part 1 required to be filed by carrying broker dealer and introducing broker dealer?
For carrying broker, dealers, within 10 business days of month end
For introducing broker dealers, the report is not required
After what time May market and limit -on -close orders no longer be canceled (even for a legitimate error)?
3:58pm
Delivery versus payment DVP requires payment to be made no more than ______calendar days from the transaction
35 calendar days
When must clients of a broker dealer receive the firms most recent balance sheet?
On request
All forms of communication with the public must be kept for _____ years, but easily accessible for the first ____years
Kept for three years, easily accessible for two years
When must a broker dealer fill a clients limit order after executing a trade for its own account at the same or better price?
Immediately – within 60 seconds
If an analysts firm just published research on a company, how long must he wait before trading the stock?
Technically, he doesn’t have to wait because there is no restriction, but a research analyst must follow his own firms procedures
How often must senior management be apprised of the status of the firm supervisory control system?
Annually
Upon validation of a transfer, the transfer must be completed within _______business days
Three business days
After notification that the bond has been delivered, the actual buying may not occur for ________business days
Two business days
A net adjustment is required for short securities differences remaining unresolved after ______business days
7 business days
A non-branch office must be reviewed on a ______cycle
Periodic
Copies of confirmations must be maintained for ___ years
3 years
For trades that occur between 8 AM and 6:29:59 PM ET, when is the TRACE report made?
Within 15 minutes of the trade
An arbitration award must be paid within _____days
30 days
Under the code of procedure, a sanction becomes effective _____ days after the firm has received final notice
30 days
What entity is the parent of the national securities clearing corporation NSCC?
DTCC the depository trust and clearing corporation
How long must a syndicate member wait before publishing research on the issuers IPO?
10 calendar days
Within ____business days of being sent to an OSJ, a principal must approve or reject a variable contract application
7 business days
Under the TCPA, on what days do the call restrictions apply?
Every day of the year
If a written complaint relates to general securities activities , for how long are the records required to be maintained?
4 years
For how long must a prospectus be provided in the aftermarket for a non-exchange IPO?
90 days
True or false: although NASDAQ marketmaker open hours are 9:30 AM to 4 PM, extended trading hours are available
True, however, specific risks are inherent in extended hours trading
The hearing panel must give a member firm _____days prior notice before a hearing is held
28 days
According to the HSR Act, and M&A deal may not be completed until_____ days after notification
30 days
The statute of limitations for submitting an arbitration claim is _____years from the occurrence of the event
6 years
What is the ADF?
The alternative display facility;ECNs use it to display orders rather than the NASDAQ market center execution system
For retail communication regarding variable contract performance, what periods must be covered?
1, 5, 10 year periods ( if under 10 years, whatever the policies life is)
According to industry rules, _____ % is the maximum sales charge on mutual funds
8.5%
A market maker withdrawing its quote for legal or regulatory reasons will be excused for up to _____days
60 days
What is the penalty of a NASDAQ market maker has an unexcused withdrawal from publishing a quote?
20 business days suspension in that stock
Between 8 AM and 6:29:59PM ET, 2 FINRA members are involved in a trade. Who reports it to TRACE?
Each FINRA member is required to report its side of the trade
When buying securities and restricted margin account clients must deposit ___% of the trade within_______ business days
50% ; three business days
Generally, how often will a broker dealer calculate the required deposit in its special reserve bank account?
On a weekly basis
Upon making changes to its Fidelity bonds, the broker dealer must notify its DEA______
Promptly
How often are firms required to evaluate their training needs?
Annually
Rule 147 offerings may not be sold to an out-of-state investor for _____months following the last sale of a new issue
Six months
A trial balance used to calculate net capital is prepared ______
Monthly
How often are broker dealers required to send statements to clients regarding penny stocks in their accounts?
Monthly
After filing notice of an impending M&A deal, it may not be completed until how many days have elapsed?
30 days
Individuals must register with the SEC within _______ of becoming an insider
10 days
What step is required if a failed-to-deliver position has been open for 13 consecutive settlement business days?
Mandatory closeout
What time limit exists for issuers/affiliates of actively traded securities that are re-purchasing their own security?
They may not purchase their security within the last 10 minutes of the trading day
Regulation A requires an issuer to file _____ years of financial statements that may be________
2 years ; unaudited
On an annual basis, when are representatives required to complete the regulatory element of continuing education?
December 31
A market maker’s registration ceases if no quote is made within _____business days
Five business days
When recommending a variable annuity to a client, when must the principal review and approve/disapprove the trade?
Within seven business days
What are the justifiable reasons for denying an individuals registration?
Conviction for any felony or securities related misdemeanor within the last 10 years
Typically, investment companies are allowed no more than ______days from request to complete a redemption
Seven days
If an investment analysis tool is made available to retail investors, FINRA must be provided access______
Upon request
A clients name and number must be kept on the do not call list____
Indefinitely
Broker dealers must review their Fidelity bond coverage____
Annually
What is the CQS? And what does it do?
The consolidated quotation system; provides quotes for NYSE and AMEX listed securities, including third market quotes
What are treble damages?
The civil penalty for insider trading, which is three times the profit made or loss avoided
What is the aftermarket prospectus requirement for the follow on offering of an exchange listed stock?
Zero days; no requirement exists for the follow on offering of an exchange listed stock
NASDAQ system hours are _____ am to _____ pm ET
4am to 8pm ET
If a customer changes his address, where and when must notification of the change be sent?
Notification must be sent to the customers old address within 30 days of the change
The NBBO or national best bid and offer is also referred to as the _______ market
Inside market
A satisfactory subordinated loan has a minimum maturity of _____
One year
For how long must a prospectus be made available in the secondary market for an exchange listed IPO?
25 days
When must retail communication concerning CMO’s be filed with FINRA?
Within 10 business days of first use
Define short swing profit
A profit earned nonstock held less than six months
When is the firm business continuity plan made available to FINRA?
Promptly upon request
Under the TCPA, if requested, a client must be placed on the do not call list within ______days of request
30 days
When must insiders report their transactions?
Within two business days of the trade
True or false: trades executed between 8 PM and 8 AM Eastern time must be reported within 10 seconds of execution
False.
The 10 second reporting requirement applies to trades executed between 8 AM and 8 PM Eastern time
Fails-to-deliver and threshold securities that have existed for _______ settlement days must be closed out
13 consecutive
When showing mutual fund returns, what time periods must be included?
1, 5 , 10 years or life if the fund if less than 10
How often must broker dealers publish reports summarizing their order routing practices?
Quarterly
An issuer with $700 million outstanding voting shares will be placed in what category?
Well known seasoned issuer (WKSI)
A seasoned issuer may use a free writing prospectus (FWP)______ filing its registration statement with the SEC
After
Jim was convicted of insider-trading and served a three-year prison term. May he now re-enter the securities industry?
No – statutory disqualification bars as a person from the securities industry for 10 years from the date of the conviction
If a qualification exam has been failed for the third time, what waiting period applies?
180 days after the third unsuccessful attempt and each attempt after that
Trades involving corporate and municipal security, settled by the_____ day following the trade date (T+_)
First business day (T+1)
For how long is a firm required to retain any written or electronic communication?
Three years from the date of last use
All documents are to be maintained readily accessible for the first ____years
Two years
Once notified by a code of procedure hearing panel, the hearing must be held within _____days
28 days
What is the private investment in public equity (PIPE)?
When a broker dealer acts as a placement agent for restricted securities of an issuer whose securities are already publicly traded
Three months ago an insider required stock at $12. If she sells the sheriff today at $15 may she keep the profit?
No – under the short swing profit rule and insider may not keep a profit earned on stock held less than six months
A syndicate member must wait____ calendar days before publishing research on the issuers IPO
10 calendar days
If securities are discovered missing during a quarterly securities count , what is the reporting period?
No later than 10 business days from discovery
According to regulation M, the restricted period begins either ____ or _____business days before pricing
1 or 5
The special reserve bank account must be evaluated by carrying firm on a _____basis
Weekly
How long are securities restricted that are received by a broker dealer as compensation for an underwriting?
Six months
To be considered a threshold security, excessive fails to deliver must occur for ______consecutive settlement days
5
Mutual fund shares have lone value after they have been owned for ____days
30 days
True or false: form U5 is retained for six years, following termination of employment
False, it is retained for three years
For insider trading violations, the SEC can sue for treble damages – what does the statement mean?
The SEC can sue for three times the damage – profit made or loss avoided
What is the NBBO?
The national best bid and offer, also considered the inside market
Investors may not purchase a new issue if those shares were sold short _____business days prior to the offering
5
In CQS, what is the penalty if a market maker fails to provide timely quotes for a security
One business day suspension from market making in that security
Under the limit order display rule, how quickly must orders that improves the market makers quote be displayed?
Immediately, but no later than 30 seconds
Unless appealed when do penalties become effective under the code of procedure?
No later than 30 days from the decision
As stated in a broker dealers supervisory program, with whom must the CEO annually conduct a meeting?
The CCO – the broker dealers chief compliance officer
The final settlement of a syndicate account must occur within ______of the syndicate closing
90 days
How often must all registered personnel participate in a compliance meeting?
Annually
Or margin clients, a firm must provide at least _____days written notice of changes in the method of computing interest
30 days
When must RRs complete the regulatory element of continuing education?
Annually by December 31
How long must an underwriting manager wait before publishing research on an issuers IPO?
10 calendar days
The SEC must be notified ____days prior to the effective date of a satisfactory subordinated loan
10 days
A carrying broker dealer must file FOCUS report part ll within _____business days of the end of the quarter
17 business days
Insiders must return swing profits, which are profits earned on stock that has been held for less than _____months
6 months
A penalty imposed by hearing panel is generally effective ____days after assessment
30 days
For how long is an employee questionnaire (form U4) and fingerprint cards retained?
For three years after the representative leaves the firm
Shelf registration is valid for up to ____ years
3 years
NASDAQ market maker normal market hours are ____am to _____ pm ET
9:30am to 4pm
What two choices does a firm have once it is notified that it has met the threshold established under the taping rule?
Either begin taping within 60 days, or reduce its staff level below the threshold within 30 days
Once form 144 is filed, owners have ____ days to sell their securities
90 days
What must be noted by a client to prevent her by limit and sell stop orders from being reduced on the ex- dividend date?
Do not reduce – DNR
The _______ and _______ of an underwriting may not immediately issue research reports on investment banking clients
The manager and comanager
According to the piggyback exception , when is the filing of form 211 not required?
When the stock has been quoted on a regular and continuous basis for the past 30 days
Issuers of non-actively traded securities may not purchase their own shares during the last ____minutes of trading
During the last 30 minutes of trading
When may regulation S securities be re-sold through a designated offshore securities market?
Immediately
If the S& P 500 falls by 20% from the previous days close, trading halts for_____
The remainder of the day
Any trades affected by representatives must be approved ______by a principal
Promptly
And mutual fund, retail, communication, performance statistics must cover ____, ____, and ____ year periods
1,5,10
What is considered regular and continuous quoting as defined by the piggyback exception?
Over the last 30 days, no more than four business days elapsed without a quote
If a storyboard has been filed, when must the final version of a TV or video advertisement be filed with an SRO?
Within 10 business days of initial broadcast
Once appointed as a principal, a candidate has ______days to qualify for the position
120 days
Customer ledgers ( account records) are maintained for _____years
Six years
How many days advance notice is provided to clients if a broker dealer changes loan terms (interest rate)?
30 days
If owned for____ days, open an investment company (mutual fund) shares may be used as collateral in a margin account
30 days
An offering effective date is generally_____ days after the filing of the last amendment
20 days
A market maker may withdraw its quote for up to_____ business days for issues beyond its control (eg system outages)
Five business days
How many business days prior to presentation must evidence of incumbency be dated?
No more than 60 days
An underwriting manager must wait_____ calendar days before publishing research on an issuers IPO
10 calendar days
When may telemarketers place calls to perspective clients?
From 8 AM to 9 PM on any day of the year
If a firms net capital is below 120% of its minimum, or its aggregate indebtedness to net capital ratio exceeds 12:1, when is notification required?
Within 24 hours of discovery
And what does a real estate investment trust (REIT) invest?
A diversified portfolio of properties and or mortgages
For how long must a prospectus be provided in the aftermarket for an IPO of a stock to be listed on an exchange?
25 days
What is the system that provides quotes for the third market?
The consolidated quotation system – CQS
An applicant will be subject to statutory disqualification for any felony conviction within the last ____years
10 years
What system facilitates the mandatory reporting of secondary market trades in eligible fixed income securities?
TRACE
Trade reporting and compliance engine
An underwriting manager must wait _____calendar days before publishing research on the issuers secondary offering
Three calendar days
The manager or co-manager of an IPO must satisfy a quiet period of _____calendar days prior to publishing research
10 calendar days
When does the restricted period begin for security with the public float of $50 million and and an ADTV of $125,000?
One business day prior to pricing
According to the locate requirement of regulation, SHO, broker dealers may use an easy to borrow list less than ______ old
24 hours
What other term may be used for a companies chief executive officer (CEO) or chief financial officer (CFO)?
Principal executive officer (PEO) or principal financial officer (PFO)
A temporary subordinated loan for underwriting purposes carries a maximum maturity of _____days
45 days
According to regulation T, what happens to a client account if she fails to pay in timely manner?
Her account will be frozen for 90 days
For their customers with free credit balances, broker dealers must provide a notification at least_______
Quarterly
When will the following trades be reported to TRACE? One was executed at 6:20 PM, and the other at 8:40 PM
Both need to be reported within 15 minutes of TRACE opening on the next business day
What investment facilitates the trading of foreign securities in US markets?
American depository receipts ADRs
Define initial public offering IPO
A company’s first public offering of securities
Securities quoted through the CQS are ______securities trading over-the-counter
Listed
What type of transaction is being executed when a client purchases securities with payment made by a third-party?
Delivery versus payment DVP or collect on delivery COD
If non-public information is unintentionally disclosed to an analyst, when must it be disclosed to the public?
Within 24 hours of its disclosure
Annual report of financial condition is filed with SEC no later than ____from the date of the financial statement
60 days
A broker dealer, outstanding subordinated debt may not exceed __% of its debt equity total for a period exceeding ___ days
70% , 90 days
A broker dealer, outstanding subordinated debt may not exceed __% of its debt equity total for a period exceeding ___ days
70% , 90 days
A branch office must be inspected every___
Three years
What is the benefit of ACATS?
It replaces a manual account transfer system with a fully automated and standardized one
What are the regular hours for the ADF trading center?
9:30 AM to 4 PM ET
How long must new issues be held before they may be used as collateral?
30 days
How often must market centers publish reports of the efficiency of executions?
Monthly
If equity securities are issued by a non-reporting company under regulation S, when can they be re sold in the US?
One year after issuance
If a firm reduces its staff to avoid the taping rule, the individuals may not be rehired for ____ days
180 days
For underwriting purposes, a broker dealer is allowed up to____ temporary subordinated loans over____ months
Three ; 12
If a client requests a copy of the pre dispute arbitration agreement, when must it be provided?
Within 10 days of the request
Under the code of procedure, a decision must be rendered within____ days after collection of evidence stops
60 days
What is the ADF reporting system?
The alternative display facility, that reports trades in securities
If a discrepancy claim arises after the transfer, the carrying firm must resolve it within_____ business days
Five business days
How many times is a quarterly form 10- Q filed each year?
Three times per year since the fourth quarter is included in the annual report
QIU is a firm that has acted as______ or_____ in at least______ similar offerings within the last_____ years
Manager or co-manager in at least three similar offerings within the last three years
True or false: an order entry firm has 10 seconds to accept or reject a trade report submitted to FINRA
False – the order entry firm has 20 minutes to accept or reject
True or false: form 211 must be filed by all market makers in NASDAQ securities
False – form 211 is required for those initiating quotes in non-exchange OTC securities
In the aftermarket, a prospectus must be provided for_____ days following a non-exchange follow on offering
40 days
What is an ECN?
Electronic communication network – anyone of several systems which permit the entry and dissemination of quotes
When must the Board of Directors of the company, subject to attend her offer, advise at shareholders regarding the offer?
Within 10 days from the date the tender is made
True or false: under regulation, S, investors may resell nonconvertible debt in the US, even if it is held for less than one year
True – non-convertible debt has a 40 day holding period
Filing form 211 is not required if stock has been the subject of regular and continuous quotes for the past ____days
30 days
A DVP transaction must be completed within _____calendar days
35 calendar days
Upon receiving a second notice from the department of enforcement regarding a complaint, firms must respond within_____days
14 days
On 5/1 , Joe emails 20 clients to promote a product. On 7/1 the same email as sent to 15 clients. Is approval needed?
No, since the promotional email is sent to 25 or fewer clients over 30 calendar days, only review is required
When are clients provided with a copy of the Predispute arbitration agreement?
The earlier of 30 days from signing the agreement or within 10 business days of request
Who publishes a list of all threshold securities?
A self regulatory organization SRO
If retail investors are provided direct access to an investment analysis tool, when must FINRA be provided equal access?
Upon request
A person must register with the SEC within____ days of becoming an insider by filing form____
Within 10 days of becoming an insider by filing form 3
A branch that supervises one or more non-branch locations must be inspected
Annually
Corporate bond trades are reported through TRACE within_____ minutes
15 minutes – TRACE then disseminates information in real time
A member firms written and electronic communication must be retained for______ years from the date of last use
Three years
Based on written request, what is the maximum period that a broker dealer may hold customer correspondence?
Three months – two exceeded three months, the customer must provide the broker dealer with a valid reason for the request
If a client equity falls below 25% the maintenance call must be met______
Promptly
True or false: all branch offices are inspected annually
False – branch offices that supervise one or more other offices are inspected annually
If a Fidelity bond is modified or canceled, when must FINRA be notified?
Promptly
When does the decision to ban or expel a registered representative from association with a member firm become effective?
Immediately
Illustrations showing returns for variable products must be for a minimum time of_____ year
One year
What is CAT?
The consolidated audit trail; it enables FINRA to review all trading activity in the US equity and option markets
What is TOD as it relates to a customer account?
Transfer on death – transfer on death allows assets to transfer to a named beneficiary owners death
Schedule____ must be filed with the SEC within_____ business days of acquiring more than___% of the companies stock
13D ; 5 days ; 5%
The principle of a member firm must approve discretionary orders_____
Promptly
To not be a branch office, a location may not be used for securities business more than_____ business days per year
30 business days
Define promptly as it relates to a principles approval of discretionary orders
Promptly means on the day of the trade, but not in advance
Account statements must be sent to a customer at least ______
Quarterly
In the aftermarket, a prospectus must be provided for_____ days following a non-exchange IPO
90 days
What is the maximum period that a stabilizing bid may remain open in the marketplace?
Indefinite
Based on written instructions, the broker dealer may hold customer correspondence for ______months
Three months
A carrying broker dealer must file FOCUS report part 1 within_____ business days of month-end
10 business days of month-end
After resignation of registration, how long does FINRA’s jurisdiction last?
Two years
A record of all customers securities positions, along with profits and losses, must be maintained for _____years
Six years
What does UTP mean?
Unlisted trading privileges, which allows an exchange to trade securities, not listed on that exchange
To begin using a form of electronic storage the broker dealers DEA requires a ______days advance notice
90 days
The telephone consumer protection act TCP, allows calls from______to ______ local time of the called party
8 AM to 9 PM
What happens if a variable contract is sold to a client who then cancels the contract within seven business days?
The selling broker dealer must return its portion of the sales charge
For how long are securities restricted if received by the syndicate as compensation?
Six months
The holding period for unregistered (restricted) securities under rule 144 is______
6 months
How often must an updated copy of the privacy notice be provided to customers?
At least once during each 12 months cycle
What amount of time must elapse before debt securities issued under Regulation S may result into the United States?
40 days the securities would remain exempt from registration
According to New York Stock Exchange rules the S&P 500 falls by 13% from the previous days. Close, trading will hold for ____minutes.
15 minutes
A trade in a TRACE eligible security is executed at 2:55 PM. When is the trade required to be reported?
By 3:10 p.m. – within 15 minutes
Customer account information must be updated every ____ months
36 months – three years
When is a broker dealer required to report operational difficulties?
Within 24 hours
What is the OFAC list?
The office of foreign assets control of the United States treasury list – it identifies suspected terrorists and criminals
For passive market making to occur for a stock it must have how many independent marketmakers?
One
Any awards granted by an arbitrator must be paid within how many days?
30 days
Trades executed through an electronic system are reported________
Automatically
A TRACE- eligible corporate bond trade occurs at 6:20 PM. When is the trade required to be reported?
It may be reported within 15 minutes of opening on the next business day
A branch office that is NOT responsible for supervising another office is inspected every_____ years
3 years
What is TRACE?
The trade reporting and compliance engine – TRACE is a reporting system for corporate bonds
Broker dealers are not required to take action if a margin deficiency is less than $______
$1000
________ following the trade date settlement for trades of US government securities or option contracts
One business day T+1
Within _____ days of notification that it is subject to rule, a firm may reduce its staff to avoid the rule
30 days
Client information is sent to the client within____ days of the account opening and updated at least every_____ months
30 days; 36 months
When do CAT reports need to be submitted to FINRA?
On the trading day after the data is recorded
How often must clients be notified of the availability of the broker check system?
Annually
If the terms of a tender offer are changed, for how many additional days must the offer remain open?
For at least 10 business days from the change
To be considered a WKSI, the issue must have been a reporting company for the previous_____ months
12 months
A broker dealers equity is below____% of its debt equity total, a violation will occur if not corrected within______ days
30%, within 90 days
The CQS is the ________________
Consolidated quotation system
How frequently do broker dealers conduct physical accounts of securities in their possession?
Quarterly
For how long after an associated person leaves a broker dealer or employee records maintained?
Three years
For SEC purposes, if it insider purchases or sells his stock, what form is filed and when is it filed?
form 4 must be filed with the SEC within two business days of the trade
After an account is closed, for how long our customer account records maintained?
For six years after the account is closed
According to the equity IPO rule, firms must update the eligibility of purchasers_______
Annually
Using the MQP, a person may be out of the securities industry for up to_____ years before having to qualify
Up to five years
True or false: a registered person with no disciplinary actions for 15 years is excused from the regulatory element
False all registered personnel must complete the regulatory element of continuing education annually by December 31
What is the criminal penalty for insider trading by corporations?
$25 million per violation
Under Sarbanes-Oxley, how often must a company file reports detailing internal controls over financial reporting?
Annually
What is the maintenance requirement for all forms of communication with the public?
Three years from last use
To avoid a close-out, a selling client must deliver the securities to the broker dealer within how many days from settlement?
10 business days
Issuers of actively traded securities may not purchase their own shares during the last_______ minutes of trading
The last 10 minutes of trading
When is FOCUS report part ll ( for carrying broker dealers) and FOCUS report part llA (for introducing broker dealers) required to be filed?
Within 17 business days of the end of the quarter
An investor is eligibility to purchase an equity new issue must be confirmed________
Annually – called the precondition of sale
By what date must a clearing firm send to the introducing firm the list of all reports that it can generate?
By July 1 – there after, the introducing firm may request any of the reports listed
If a broker dealers investment company communications include self created rankings, when must they be filed with FINRA?
At least 10 business days prior to use
Under regulation T, does the payment requirement apply to cash or to margin accounts?
Both – payment is due within three business days for a cash account (100% payment) and a margin account (50% payment)
When must a BD notify the authorities if securities are discovered missing due to a securities count ?
Within 10 business days
In the after market - for how long must a prospectus be provided following an IPO of a stock to be listed on an exchange?
25 days
If a security is recovered after having been reported as lost/missing, when must the SIC be notified?
Within one business day of recovery
When is a non-branch office inspected?
Periodically
If a firm is acting as a dealer (not a manager or co-manager) on an IPO, what’s the quiet period On research?
Dealers cannot publish research until 10 calendar days after an IPO
A registered representative discovered securities are lost/missing. When must she report this fact to the SIC and transfer agent?
Within one business day following a two day search
After receiving notice from the department of enforcement regarding a complaint, the firm must respond within_____ days
Within 25 days
The SEC may suspend trading on an exchange for up to ____ days
90 days
What is the trade reporting system form NASDAQ securities?
Trade reporting facility TRF- formerly ACT
Notice of buy-in may not be delivered to a seller sooner than______ business day after settlement
One business day
A carrying broker dealer must file FOCUS report part ll _________
Quarterly
When is settlement for a transaction That’s using a sellers option settlement?
On a date that’s agreed on by both parties, but not earlier than two business days after the trade date
A firm that reduces its staff to prevent from having to tape its calls must wait______ days before hiring those registered representatives
180 days
When must accompany file a form 10-K with the SEC?
Annually
What is TRF?
The trade reporting facility
TRF reports trades in NASDAQ and third market securities
What is the ORF?
The OTC reporting facility that reports trades in OTC markets (eg pink market)
And introducing file FOCUS report part llA Within_______ business days of the end of the quarter
17 business days
What is the penalty if a CQS market maker (third market) has an unexcused withdrawal from publishing a quote?
One business day in that stock suspension
What program allows a registered representative to leave a broker-dealer and later rejoin the industry within five years and not need to requalify?
Using a maintaining qualification program MQP, a person has five years before being required to requalify by exam
Under the code of procedure, the first opportunity to respond is within______ days, and within______ days for the second
Within 25 days and within 14 days for the second
Short securities differences will have a 100% haircut (reduction) after how many days have elapsed ?
28 days (increments of seven days)
If a non-transferable asset is sold, the carrying BD has_____ business days to pay the client
Five business days
What exception allows an underwriting manager to immediately publish research on a company due to a significant event?
The hot news exception
What is the trade reporting system for OTC equities ?
Over the counter reporting facility ORF
Once placed, a tender offer must remain open for at least _____ business days from the announcement
20 business days
What is the SIC?
Securities information center ; created to identify and intercept stolen, forged or missing securities
On termination of a registered representatives employment, when must form U5 be filed with FINRA and a copy provided to the RR?
Within 30 days
For active accounts, many firms send account Statements_______
Monthly
A firm preparing research must disclose whether it received underwriting compensation within the last________ months
Within the last 12 months
If an auditor for a member firm finds a deficiency, when must the broker dealer notify the regulators?
A procedural deficiency is reported within 24 hours of discovery
Corrective action plan is sent within 48 hours
If a transaction is reported at a clearly erroneous price, when will review and action be taken by FINRA?
Under normal circumstances, within 30 minutes
To cover a short sale, investors may not use a new stock issue if the short sale occurred within_______ days of the offer
Within five days of the offer
True or false: for a seasoned issuer, a shelf registration becomes effective immediately
False – a seasoned issue may use a shelf registration, but it will be subject to SEC staff review
When must a broker dealer buy in the securities if a selling client fails to deliver securities?
No later than 10 business days from settlement of the transaction
True or false: CQS transactions must be reported within 10 seconds of completion
True – CQS transactions must be reported within 10 seconds
The criminal penalty for insider trading by an individual is a maximum of $______ And/or ______ years in prison
$5 million and or 20 years in prison
The_____ is the office providing final approval of retail communication
The OSJ- office of supervisory jurisdiction
For how long must a prospectus be provided in the aftermarket for a non-exchange follow on offering?
40 days
Retail communication concerning an investment company must be filed with FINRA within______ days of use
10 business days of use
An RR Leaves his firm to join the military. After being discharged, his special and active status continues for_____days
90 days
Letters of intent may be backdated for ______ days
90 days
An established customers one that has traded with a firm for more than _____year
One year
An established customers one that has traded with a firm for more than _____year
One year
True or false: after completing a 20 business day suspension as a market maker, a firm may immediately begin quoting the stock
False – the firm must reapply, and once its application is approved, it may begin quoting on the same day
Under the TCPA, an existing relationship exists if a client has engaged in transactions within_______ months
18 months
Once a TRACE report is made , when is the information available to the public?
Immediately
Retail communication for collateralized mortgage obligations CMOs must be filed within______ business days of use
10 business days of use
What two situations would require a trade to be reported to TRACE within 15 minutes of the next TRACE opening?
A trait occurs within 15 minutes of TRACE closing or a trade occurs when TRACE is not open
When must trades executed between 8am and 8pm be reported ?
Within 10 seconds of execution
True or false: the ex dividend date is on the same date as the record date
True
When must final settlement of a syndicate occur?
Within 90 days of the syndicate closing
What system is used for reporting corporate bond trades?
TRACE
Form U5 is filed with F INRA within _____ days of resignation or termination of association with a member firm
30 days
Once notified that taping is required, firms have_____ days to start taping, and tapes are retained for_____years
60 days and 3 years
For a WKSI, a shelf registration becomes effective_______
Immediately
List some records that must be maintained for three years
Trade tickets, confirms, trial, balances, retail communication, correspondence, and employee records
Form U5 must be retained by member for_____ years
Three years
For an order to NOT be adjusted, it must be marked________
Do not reduce DNR
Broker dealers are required to monitor the status of all fully paid and excess margin securities on a______basis
Daily
What is SIPC?
Securities investor protection corporation
SIPC protects separate customers in the event of broker dealer bankruptcy
If a broker dealers investment company communications do not include self created rankings, when must they be filed with FINRA?
Within 10 business days of first use
Under portfolio margin rules, margin requests must be satisfied within_____ business days of request
Three business days
Customers are given_____ business days after settlement date to pay for their portion of a trade (I.e. S+___ or T+___)
Two business days
S+2 or T+3
Within what period must any required adjustment be made to a firm’s Fidelity bond?
Within 60 days of the anniversary of posting the bond
When I request to transfer an account is received, how long does the firm have to validate or protest the transfer?
One business day
What is the penalty for a voluntary withdrawal as an NASDAQ market maker?
A 20 business day suspension from quoting that security
The industry minimum maintenance requirement for a long account is____%
25%- equity must be at least 25% of LMV
A person has been registered for nine years. When is she subject to her next regulatory element of continuing education?
December 31 of the current year
A carrying broker dealer must file FOCUS report part l________
Monthly
Complete the statement: an ad referring to a six-year-old funds ranking based on total return must referred to_________
The total return for the one and five-year periods by the same ranking entity
Mutual funds are required to provide a______ report to their shareholders
Semi annual
Generally, TRACE reporting is required within______ minutes of the trade
Within 15 minutes
The SEC may suspend trading for up to______ business days for an individual issue
Up to 10 business days
If an associate request a copy of his U5 how long does the member firm have to respond?
Responses must be made within two business days of request
Though acting in good faith, a customer sells securities, but does not deliver. When was the broker dealer close out the trade?
All fails to deliver must be closed out within 35 calendar days
What are the system hours of operation for the ADF?
8 AM to 6:30 PM ET
If securities are in transit and are identified as such, the buy in will be delayed for______ calendar days
Seven days
Customer confirmations must be maintained for_____ years
Three years
According to NYSE rules, if the S&P 500 falls by 7% from the previous days close, trading will halt for______ minutes
It will halt for 15 minutes
True or false: an office of supervisory jurisdiction OSJ is inspected monthly
False –OSJ are inspected annually
Firms subject to the taping rule must commence taping phone calls within_____ days
Within 60 days
In order to NOT file form 211, no more than_______ business days may have elapsed without a quote for the stock
No more than four business days
How often are the circuit breakers that are used to determine the triggering of a trading halt reset?
Daily
A broker dealer may allow a selling client up to______ business days from______ to deliver the securities before closing out
A broker dealer may allow us selling client up to 10 business days from settlement to deliver the securities before closing out
If an error has been identified in a report that submitted by a firm into the consolidated audit trail, CAT system, it must be corrected by:
8 AM ET on the third business day following the trade
Under portfolio margining rules, maintenance calls are due within __________ business days
3 business days
The purchase and sales blotter must be retained for _______
6 years
Regulation M notice is required to be filed with FINRA by no later than__________ business day prior to the start of the restricted period
One business day
a DK notice must be sent by the receiving firm within______
One business day
A broker dealer has received a complaint, which indicates that one of its representatives has stolen securities from a client. This complaint requires the firm to notify FINRA within______ days
30 days
According to FINRA’s uniform practice code, a buy-in can occur no sooner than____ business days following the settlement day
3 business days
Market centers are required to report the percentage of trades that received price improvement______
Monthly
When is the last time a market on open (MOO) can be updated ?
9:28am
A carrying broker dealer that receives or holds customer funds and securities is required to maintain a minimum net capital of:
$250,000
According to the Bank Secrecy Act BSA, firms must file BCTRs within ______ days
15 days
According to the Bank Secrecy Act BSA, firms must file SARs within ______ days
30 days
_____ securities are not subject to the 5% policy
IPOs
A client received an instant message from her registered representative, which suggests that she consider rebalancing her portfolio based on his latest analysis the RR’s instant message is considered ________ communication and ______ by her principal
Correspondence and reviewed by her principal
The ACAT system is most likely used to transfer _____ because most common stocks are transferable in the ACAT system
Penny stocks
Any unsatisfied judgments or liens against RRs must be disclosed to FINRA within ______ days and disclosed in form U4
30 days
A client who has a portfolio margin account receives a maintenance call as a result of an unfavorable market move. This maintenance call is due within ______ business days
Three business days
An issuer is required to provide an annual proxy statement to shareholders at least _________ days prior to the meeting
20 CALENDAR days
Under SRO rules, how many business days does a firm have to resolve a discrepancy on a transfer from a transfer request ?
5 business days
A clearing firm that engages in best efforts underwritings is required to have a minimum net capital of:
$250,000
If a customer executes an equity trade in a cash account, Reg T requires the BD to obtain payment on a _________ basis
T +3
Broker dealer A is an introducing firm that has a trading desk. It typically provides the DTC number of its clearing firm to trade counterparties. This is a ______
Give up
A member may, by agreement, permit another member to report and lock in trades on its behalf
If a storyboard has been filed, when must the final version of a TV or video advertisement be filed with an SRO?
Within 10 business days of initial broadcast
The ____________ must sign the account form
Supervising principal
True or false: investment company retail communication that contains performance figures is considered a prospectus
True
If variable product retail communication, mentions liquidity, what must also be described?
Any potential fees or expenses
If variable product retail communication, mentions liquidity, what must also be described?
Any potential fees or expenses
