Supervision and Management Flashcards
Statutory Disqualification
- 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
U4 (key items)
- 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
30 (days)
Updates to U4 (i.e. change in name) need to be made in __ days or a late fee will be charged
10 (days)
If a statutory disqualification event occurs then the Form U4 must be amended within ___ days of learning from it
3 (years)
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
U5; 30 (days)
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)
2 (years)
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.
2,3
Regulatory element of Continuing Ed must be completed within 120 days of __nd registration anniversary and every ___ years after (__,__)
Series 6
Investment Company and Variable Products Representative - allows the holder to offer investment company products and variable contracts by prospectus
Series 7
General Securities Representative - allows the holder to offer all types of securities subject to approved business lines of the representative’s broker-dealer
Series 22
Direct Participations Programs Limited Representative - allows the holder to sell DPPs such as limited partnership agreements
Series 52
Municipal Securities Representative - allows the offer of municipal securities, municipal fund securities and municipal markets.
Series 57
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
Series 86/87
Research Analyst - allows the holder to prepare research reports. For individuals who prepare communications that analyze equity securities or individual companies/industry sectors
Series 99
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.
30
FINRA must be notified within ____ days of the relocation or opening of a new branch and the filing of form BR
30, 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
Series 4
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
Series 9/10
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.
Series 14
Compliance Officer - No prerequisite exam required
Series 24
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.
Series 26
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
Series 27
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.
Series 51
Municipal Fund Securities Principal - must pass the 24 or 26 first
