Important Timelines Flashcards
settlement day for cash
Same Day
Regular way settlement for U.S. Government securities and options
T+1
Regular way settlement for Municipal and corporate securities, and Mutual Funds
T+2
amount of time specific financial information for a mutual fund can be used in a prospectus
16 months
max time customer can place options before signed option agreement required
15 Days
How long is the cooling off period?
20 Calendar Day
Statue of limitations for fraud
5 Years from violation or 2 from Discovery
Statute of Limitations for Securities Violations
Federal - 3 Years from violation/1 From Discovery. State - 3 Years from violation/2 From State
Retail/Correspondence Communication
25 retail investors within 30 days/Less than 25 within 30 days
Copies of retail comm. must be filed with FINRA ?
<1 Year - at least ten days before use. >1 year, within 10 days of first use
How old can the company’s do not call and FTC Do not call lists be?
No more than 30 days old
Account record requirements?
Furnish a copy within 30 days. Updated account within 30 days notification, at least every 3 years
Account statement requirements?
At least every quarter
What regulation requires privacy notice at relationship establishment and annually?
Regulation S-P
What is on the Form U4
5 year residency and 10 year employment history. Any statutory disqualifications must be filed within 10 business days. Any standard changes must be filed with central registration depository no later than 30 days after member is made aware.
Form U5
within 30 days of termination/resignation. Two years jurisdiction for FINRA and regulators. No need to requalify within the 2 years
The SIE is good for?
4 Years
How does military service affect registration?
Special inactive service until 90 days after leaving service. Two years start at the end of the 90 days
Statutory disqualification
felony conviction or misdemeanor conviction involving securities or money within the past 10 years
SIPC coverage
must be given to new customers at the account opening and once each year thereafter
Contemporaneous traders
may bring a suit against an insider trader up to five years after the violation
Temporary Holds on disbursements and review of financial exploitation
can be no longer than 15 days and notification must be sent no later than two days after the hold started
Firm Partnership agreement or corporate charter, and BOD meeting minutes
must be held for the life of the firm
Stock records, general ledger, and customer account records
Must be held for 6 years
SAR Records
must be held for 5 years
Written complaints records
must be held for 4 years
Report listing all written complaints is filed with FINRA
within 15 days of the end of each calendar quarter
what is the penalty for freeriding?
account frozen for 90 days
Regulation Crowdfunding
Investors cannot sell securities for 12 months and companies can raise up to $5M
SEC Customer Protection Rule
stock in a valid transfer location is considered a good control location for a maximum of 40 days
Requirement to open a Coverdell ESA. also, how long does the person have to withdraw the funds after they turn 30?
Child must be under 18 and 30 days
Customer Protection Rule
BD must make a deposit no later than 2 days after the date of calculation
IRA Rollovers have a time limit of
60 DAYS
Mutual Funds and Margin
cannot be bought on margin but can be used as collateral after being held for 30 days
Customer Relationship Summary (CRS)
must be delivered before the earliest of entering into an investment advisory contract or the opening of a brokerage account for the retail investor
Customer must pay for purchases in accordance with Reg T within
4 business days
Which Act deals with Misusing nonpublic information
Securities and Exchange Act of 1934
Cash value of variable annuity required to be calculated
at least monthly
Letter of Instruction (LOI)
13-month window begins date of original purchase and can be backdated 90 days
Companies are required to notify FINRA of corporate actions
10 days prior to the record date
Review of unusual activity must be maintained for
18 months
Performance stats in a mutual fund prospectus must be updated every
12 months
Ex date for Stocks/Mutual Funds
Day before Record Date/Day after Record Date
Face amount certificates have a maturity of at least
24 months
FINRA members must report violations within
30 days
An issuer with average DTV of at least $100K and $25M in public float has a restriction period of
1 Day
The purchase of an equity option settles on __ and the exercise of an equity option settles on __
T+1 and T+2
To qualify as a conduit, a mutual fund must pay out a minimum of?
90% of net income
