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Series 10 > Part 1: Supervision of Associated Persons & Personnel Management Activities > Flashcards

Part 1: Supervision of Associated Persons & Personnel Management Activities Flashcards

1
Q

FINRA is authorized by ___________

A

Congress

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2
Q

Which 2 forms must a firm electronically file to become a FINRA member (in addition to other requirements)?

A

New Membership Application (NRA) & Form BD

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3
Q

_____ maintains info on all persons registered with FINRA, including information on customer complaints, arbitrations, and disciplinary history.

A

Central Registration Depository (CRD)

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4
Q

What 2 things will the U4 never ask?

A

Marital and educational status

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5
Q

Form U4 requires how many years of employment history?

A

10 years

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6
Q

Form U4 requires how many years of your residential history?

A

5 years

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7
Q

Form U4 requires how many years of history regarding securities convictions?

A

10 years

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8
Q

How soon must updates be made to the U4 before late feels will be charged?

A

30 days

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9
Q

How many years must a firm keep a copy of a RR’s U4, after their termination?

A

3 years

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10
Q

If there is a statutory disqualifying event, how many days do you have to update Form U4?

A

10 days within learning of it

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11
Q

A person’s former employers for the past ____ years must be contacted to check the accuracy of their records and information given regarding a U4.

A

3

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12
Q

If a BD is approached by a potential employer for one of their former employers, how many days do they have to furnish the requested information?

A

10

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13
Q

What is a Form U5?

A

The form filed when a RR is terminated or resigns.

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14
Q

If a member firm files a U5 and then learns of facts that would necessitate a change in the U5, how many days to they have to file an amended U5?

A

30

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15
Q

Who provides the U5 to the new employing member firm?

A

Either the employee or FINRA’s Web CRD.

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16
Q

If requested, how many days does the new employee have to provide the Form U5?

A

2 days, unless they don’t have it yet, but when they get it they have 2 days.

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17
Q

What is the Form U6?

A

When BDs and APs are disciplined, the regulators file the U6 to report the action. Can also be used to report final arbitration awards.

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18
Q

How many years are someone’s licenses valid after leaving the industry?

A

2 years

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19
Q

Securities Industry Essentials (SIE)

A

intro-level exam, basic securities concepts. Passing this alone does not qualify an individual for registration. They must pass this and a qualification exam.

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20
Q

Series 6

A

Investment Company and Variable Products Representative - allows the holder to offer investment company products and variable contracts by prospectus (MF’s, UIT’s, etc)

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21
Q

Series 7

A

General Securities Rep - allows the holder to offer all types of securities subject to approved business lines of the BD.

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22
Q

Series 22

A

Direct Participation Programs Representative - allows the holder to sell DPP’s such as limited partnership interests

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23
Q

Series 52

A

Municipal Securities Rep - qualifies a rep to offer municipal securities, muni fund securities. Also covers US Government, Federal agency, and other financial instruments

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24
Q

Series 57

A

Securities Trader Exam - allows the holder to trade OTC equity and convertible debt securities.

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25
Series 86
Research Analyst - allows the holder to prep research reports, specifically for analysis
26
Series 87
Research Analyst - focuses on rules and regulations
27
Series 99
Operations Professional - for those required to supervise or manage client on-boarding in addition to funds collection, maintenance, disbursement, etc. *Note: You may register as OP's if you have the 6, 7, or 24, etc.
28
How many resident principals are required at each OSJ?
1
29
If the branch relocates or a new one opens, how many days to notify FINRA by filling out Form BR?
30
30
When do firms need to review (and if necessary, update) their contact information each year?
Within 17 business days of the end of each calendar year.
31
Series 4
Options Principal - allows individuals to supervise the BD's options business
32
Series 9/10
General Securities Sales Supervisor - allows registrant to supervise sales efforts of a member firm.
33
Series 14
Compliance Officer - Chief Compliance Officers. This is one of few exams that has no prerequisite.
34
Series 24
General Securities Principal - can supervise most activities of a firm: trading, market making, investment banking, sales. Can also approve retail communication. Req. before taking the series 51
35
Series 26
Investment Company/Variable Products Principal - can function as a principal for the solicitation, purchase, and sale of redeemable investment company securities and variable contracts.
36
Series 27
Financial and Operations Principal - allows them to supervise the preparation of the firm's financial and operational reports. No prerequisite.
37
Series 51
Municipal Fund Securities Principal - allowed to supervise activities in muni fund securities (ex: 529s). Prereq: Series 24 OR 26
38
Series 53
Municipal Securities Principal - to supervise the purchase and sale of muni securities. All FINRA/MSRB engaged in muni business must have at least 1.
39
Series 79
Investment Banking Rep - can perform the functions of an investment banker....advising on or facilitating debt or equity offerings thru a private placement or IPO.
40
Who administers the test necessary for NYSE floor brokers, clerks, and DMM's?
The NYSE
41
How many days must a person wait before retesting, if they have failed the exam 4+ times?
180 days
42
How often do municipal brokers or deals need to be examined (audited)?
At least once every 4 years
43
Under Code of Procedure rules, an appeal of an adverse decision must be made within how many days of the decision date?
Within 25 days
44
A report must be filed with FINRA promptly, but no later than 30 calendar days, after the member knows (or should have known) of the existence of a complaint against a registered representative alleging ____, _____, or _____.
forgery, theft, or misappropriation of customer assets
45
A registered representative admits to a minor rule violation and signs an acceptance waiver and consent. What is the maximum penalty?
$2500
46
Exchange Traded Notes (ETN's) are subject to the registration requirements of the ______.
Securities Act of 1933
47
Contributions of up to ____ per election are permitted if the contributions are made by Municipal Finance Professionals eligible to vote for that official.
$250
48
Which rule prohibits muni firms from engaging in muni securities business with an issuer for 2 years after a contribution is made to an official of that issuer by the muni firm, any MFP associated with the firm, non-MFP executive officers, PAC's controlled by the firm, or bond ballot contributions?
Rule G-37
49
Which rule requires that the member firm be contacted in writing and duplicate confirms sent if an account is opened for an employee of another member firm?
Rule G-28
50
How often do reports need to be filed with the MSRB on Form G-37 detailing all contributions made by the dealer and its professionals?
Quarterly. Filed by the last day of the month following the end of each calendar quarter.
51
How many exemptions to G-37 can be granted for one MFP?
Only one. The BD may not take advantage of more than one automatic exemption for political contributions made by the same MFP.
52
How many exemptions is a BD entitled to for a 12-month period?
2 automatic exemptions (can't be the same MFP)
53
When may a broker-dealer submit Form G-37x?
If they have not engaged in municipal securities business for 8 consecutive quarters, they may become exempt from most of the requirements of Rule G-37.
54
How long must copies of Form G-37 be maintained?
6 years
55
What is FINRA's rule regarding political contributions?
FINRA Rule 2030
56
Regarding FINRA Rule 2030, what is the contribution limit to any official per election?
$350
57
Regarding FINRA Rule 2030, if the covered associate is not entitled to vote for the official at the time of contribution, what is the maximum contribution amount per election?
$150
58
Which report is the annual report that details the member firms' supervisory control systems?
Rule 3120 Report
59
How long must the designation record be maintained?
for 6 years after any change is made.
60
MSRB Rule _____ states that all municipal firms must deal fairly with all persons and not engage in any deceptive, dishonest, or unfair practice
Rule G-17
61
How often must a non-OSJ branch be reviwed/audited?
At least once every 3 years.
62
Reviews of office inspections must be in writing and kept for ___ or more years.
3
63
How often must a FINRA staff member audit municipal broker-dealers that are members of FINRA?
Once every 4 calendar years.
64
A dispute between a registered representative and his customer that results in a settlement exceeding $_____ or in commissions in excess of $____ being withheld by the firm, must be reported to FINRA promptly, but no later than 30 days after the event.
$15,000; $2,500
65
All managers of OSJ offices must be registered as a _______
principal.
66
In a competitive offering of municipal bonds, the issue is usually awarded to the syndicate that offers to sell the bonds ______________
with the lowest net interest cost to the issuer.
67
True or False: The MSRB has no enforcement authority.
True!!!! They create & interpret rules.
68
The Series 7 license permits a representative to sell virtually any security. One exception to this is: __________
commodity futures
69
Upon validating customer municipal securities accounts after transfer instructions have been received, how many business days until the transfer of the account must be completed?
3 business days
70
Is a limited partnership unit considered a passive investment?
Yes. Therefore, the prohibitions against outside business activities do not apply.
71
After giving __ days' written notice, FINRA may suspend or revoke the membership of any member in arrears in the payment of fees, dues, assessments, or other charges
15
72
Members must file notice with FINRA to report securities- or commodities-related judgments, awards, or settlements of $___ or more against individuals and $___ or more against member firms.
$15k; $25k
73
Under the Code of Procedure, a respondent must reply to the hearing officer within ___ days of receiving a complaint.
25
74
Principal designation records must be maintained for __ years.
6
75
A municipal bank dealer with eleven or more associated persons requires __ principals, unless the firm belongs to another registered securities association.
2
76
The 24-month time restriction on bidding in municipalities in which prohibited political contributions were made pertains to [negotiated bids or competitive bids?]
negotiated bids. They may submit competitive bids
77
An associated person of a municipal dealer who supervises the preparation of financial reports that must be filed with regulators must have passed the Series __
27 - Financial and Operations Principal
78
A member firm may grant discounts, concessions, or other allowances to _____
a foreign nonmember ineligible for FINRA membership.
79
True or False: The MSRB has no jurisdiction over issuers.
True
80
OTC securities report to FINRA on the ____
ORF (over the counter reporting facility))
81
A member can grant discounts and other concessions only to __________.
other member firms. The only exception is that a member firm can grant concessions to a foreign nonmember firm that is ineligible for FINRA membership.
82
Non-public arbitrators are people who have in the past five years devoted __% or more of their time servicing the securities industry.
20
83
Your firm must provide FINRA an update to any change in emergency contact persons within how many days?
30
84
FINRA Rule 2165 permits firms to place a temporary hold (__ business days) on disbursements from the accounts of individuals aged 65 or older; and individuals aged 18 or older whom firms reasonably believe have an impairment that prevents them from protecting their own interests (a specified adult).
55 (this was amended March 2022)
85
FINRA requires fingerprints to be kept for _____
3 years after the employee's termination
86
MSRB requires fingerprint cards to be kept for ______
4 yrs
87
To calculate how low the market value may drop before a client would be at the minimum maintenance requirement, divide the debit balance by __%.
75% ex: ($15,000 ÷ .75 = $20,000)
88
Time extensions for a Regulation T margin calls are requested from ___
the SRO

Series 10 (4 decks)

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