FINRA Rules Flashcards
What does the CRD stand for?
Central Registration Depository - database of registered representative information
When are RRs required to have training?
Regulatory - computer training after 2nd anniversary/every 3 years after
Firm - Firm required to have annual training
What is a U-5 form?
Termination of Registration
How long does a member firm have to notify FINRA of a reportable event?
30 days
What is the RR gift limit?
$100 per person per year
Can an RR pay a customer for work?
Yes, but there must be a written agreement and the principal must approve it
How long is the underwriting manager prohibited from issuing research reports on an IPO or add-on offering?
IPo: 40 days after IPO
Add-on: 10 days after offering
How long is a researcher prohibited from trading the issue of the firm they are researching?
30 days prior to report
5 days after
Definition of a research report
Any communication that analyzes securities if it:
provides information upon which to base an investment decision
and is distributed to at least 15 persons
Code of Procedure Steps
File Complaint District Hearing Panel National Adjudicatory Council SEC Federal Court
Does a brokerage firm have to forward all complaints to its self regulatory organization?
No, not if complaint is resolved
If a representative is a member of an investment club, what is there maxiumum level of investment that would allow the club to purchase an IPO?
10%
What is the definition of correspondence?
communication to 25 or fewer existing or prosepective clients; anything more is sales literature
What does regulation AC require?
That analysts provide a written certification for each research report, and a quarterly certification of all public appearances
How long must research reports be kept on file?
3 years
