Supervision and Management

Question 1

Statutory Disqualification

Answer 1

• Must report associated person promptly but not later than 30 days of learning of event.
• If convicted of money/securities misdemeanor or any felony within last 10 years (with exceptions); willful failure to disclose

Question 2

U4 (key items)

Answer 2

• Name, address, SSN, DOB, identification information, 10 year business employment, 5 year residence information, bankruptcy
• does NOT include marital status or education
• Changes to CRD within 30 days
• Representatives signature for new and amended with DRPs

Question 3

30 (days)

Answer 3

Updates to U4 (i.e. change in name) need to be made in __ days or a late fee will be charged

Question 4

10 (days)

Answer 4

If a statutory disqualification event occurs then the Form U4 must be amended within ___ days of learning from it

Question 5

3 (years)

Answer 5

A broker-dealer must verify information recorded on form U4 by checking the person’s references and contact each employer listed for the proceeding ___ years regarding the accuracy of the information given on the U4

Question 6

U5; 30 (days)

Answer 6

If an individual registered with a member resigns or is terminated, the member must file the Form ____ with the CRD within ___ days of termination date and provide a copy of the form to their former employee within the same time frame.
- A new employer must get a copy of this form from FINRA or new employee, not from former employer (within 2 business days of request)

Question 7

2 (years)

Answer 7

If a rep is no longer registered, he continues to be subject to the jurisdiction of regulators for at least ___ years after his registration is terminated. Must file any residential address changes for ___ years following his termination date or last Form U5 amendment to FINRA. Licenses remain valid for __ after leaving employer.

Question 8

2,3

Answer 8

Regulatory element of Continuing Ed must be completed within 120 days of __nd registration anniversary and every ___ years after (__,__)

Question 9

Series 6

Answer 9

Investment Company and Variable Products Representative - allows the holder to offer investment company products and variable contracts by prospectus

Question 10

Series 7

Answer 10

General Securities Representative - allows the holder to offer all types of securities subject to approved business lines of the representative’s broker-dealer

Question 11

Series 22

Answer 11

Direct Participations Programs Limited Representative - allows the holder to sell DPPs such as limited partnership agreements

Question 12

Series 52

Answer 12

Municipal Securities Representative - allows the offer of municipal securities, municipal fund securities and municipal markets.

Question 13

Series 57

Answer 13

Securities Trader Examination - allows the holder to trade (as an agent or a principal) OTC equity and convertible debt securities. Required for NASDAQ equity trading, market making, OTC equity trading, and proprietary trading

Question 14

Series 86/87

Answer 14

Research Analyst - allows the holder to prepare research reports. For individuals who prepare communications that analyze equity securities or individual companies/industry sectors

Question 15

Series 99

Answer 15

Operations Professional - required for those senior managers with direct responsibility to supervise or manage client on-boarding in addition to funds collection, maintenance, disbursement and reinvestment margin, stock lending, contributing to the process of preparing regulatory reports, trade confirmations, and other back office functions.

Question 16

30

Answer 16

FINRA must be notified within ____ days of the relocation or opening of a new branch and the filing of form BR

Question 17

30, 17

Answer 17

FINRA requires firms to update contact information promptly, but in no event later than ___ days following any change. Firms must review and, if necessary, update the information within ___ business days after the end of each calendar year

Question 18

Series 4

Answer 18

Registered Options Principal - qualifies an individual to supervise the member’s options business. All members engaged in options transactions for customers must have at least one qualified ROP to make sure those customers benefit from strong supervisory procedures

Question 19

Series 9/10

Answer 19

General Securities Sales Supervisor - allows the registrant to supervise the sales efforts of a member firm, both options and general securities. - Cannot oversee investment banking, trading, or market making or approve retail communications. - Can approve new accounts, review correspondence of RRs, and review transactions.

Question 20

Series 14

Answer 20

Compliance Officer - No prerequisite exam required

Question 21

Series 24

Answer 21

General Securities Principal - allows the registrant to supervise most activities of a member firm, including trading, market making, investment banking, and sales. May also approve retail communication, including communications regarding municipal securities. Must have two of these principals to operate a general securities firm.

Question 22

Series 26

Answer 22

Investment Companies/Variable Products Principal - qualifies a person to function as a principal for the solicitation, purchase, and sale of redeemable investment company securities and variable contracts

Question 23

Series 27

Answer 23

Financial and Operations Principal (FinOp) allows the registrant to supervise the preparation of the firm’s financial and operations reports. Responsible for the weekly reserve computation and make sure firm is in compliance with the net capital requirements. Responsible for the maintenance of firm books and records, safekeeping, and the processing and clearing functions of the firm.

Question 24

Series 51

Answer 24

Municipal Fund Securities Principal - must pass the 24 or 26 first

Question 25

Series 53

Answer 25

Municipal Securities Principal. All municipal securities firms must have at least two unless the firm 1. belongs to another securities association such as FINRA, or 2. Has fewer than 11 associated persons

Question 26

Series 79

Answer 26

Investment Banking Representative - allows the holder to perform the functions of an investment banker,