Regulators

Question 1

What does the SEC reg

Answer 1

BDs transacting sec bus with customers or other BDs
exchanges
Issues
client protection and insider trading

Question 2

What is FinCEN

Answer 2

financial crimes enforcement network
combat money laundering
other illegal money moves
promote national security of finan intelligence

Question 3

Is the abreviation for Office of the Comptroller of the Currency OCC

Answer 3

no that stands for Options Clearing Corporation

Question 4

What act regs packaged products like mut funds, closed end funds, and UITs

Answer 4

Investment Comp Act of 1940

Question 5

What act regs BDs from bankruptcy

Answer 5

Sec Invs Protection Act of 1970

Question 6

All BDs that are regd with the SEC must also be regd with and who are exempt

Answer 6

SIPC
banks that only deal with munis or US gov secs
firms dealing exclusivily in redeemable investment comp secs

Question 7

What does SIPC do

Answer 7

is notified of a problem BD, investigates, if find failure, court orders trustee to liquidate the firm

Question 8

What is considered a separate acc for SIPC

Answer 8

Johns acc and his custodian acc for Jane Doe are separate
having another margin acc is not separate

Question 9

What does SIPC cover in margin accs

Answer 9

only the equity

Question 10

What amount does SIPC cover

Answer 10

500k per separate acc, up to 250k of cash

Question 11

What is a consid for SIPC and a BDs advertisign

Answer 11

must mention but cant overstate SIPC benefits or uniqueness to that BD
must have sign on premise
font cant be bigger than the firms name

Question 12

They first word in SIPC is security what does it only cover

Answer 12

secs
options have a sec inderlying so they are covered

Question 13

What is a rule for new clients set by SIPC

Answer 13

must disclose info on SIPC can be gained by contacting SIPC
and once yearly

Question 14

What is the FDIC

Answer 14

Federal Deposit Insurance Corp
insures deposits at banks max 250k PER PERSON
So indivi acc and joint acc both get 250k coverage

Question 15

What does FINRA reg

Answer 15

investment banking (sec underwriting)
OTC markets
licensing of sec representatives
other stuff same as SEC

Question 16

People who work for FINRA are often called

Answer 16

associated person

Question 17

member firms of FINRA can only what and what are the exceptions

Answer 17

work with other FINRA members
bank underwriting munis
foreign firms tthat are members of their FINRA equivalent

Question 18

Exchanges have the power to

Answer 18

freeze trading or delist a sec

Question 19

What records are kept indefinitely

Answer 19

Partnership agreements
corp charter
stock certificate books
minutes
amendments
organizational records like a Form BDW

Question 20

What records need to be kept for 6 years

Answer 20

generally the holdings of the firm and its customers
financial records
blotters - essentially actions taken on investments
general ledger of balance sheets
stock record
customer ledgers and account documents
Appointments of principal

Question 21

What records are held for 4 years

Answer 21

written complaints

Question 22

What records are held for 3 years

Answer 22

mostly anything else

Question 23

Consid for 3 and 6 year records

Answer 23

first two they need to be readily available so not off site