Time frame to memorize Flashcards
A Suspicious Activity Report (SAR) must be filed within what time period?
30 days
When is an order-entry firm required to accept, reject, or file its version of a trade?
Within 20 minutes of execution
Under the Limit Up/Limit Down Rule, what is the length of the trading pause?
The length of the trading pause under the Limit Up/Limit Down Rule is five minutes. During this window orders may be entered but no executions may occur.
If an error has been identified in a report that’s submitted by a firm into the Consolidated Audit Trail (CAT) system, it must be corrected
If an error is identified in the data that a firm has reported to CAT, the firm must submit corrected data by 8:00 a.m. ET on the third business day following the trade
From Monday, January 2, 20XX, to Friday, January 6, 20XX, Broker-Dealer X’s ADF connections and quoting systems have gone down three times. What are the repercussions for Broker-Dealer X
An ADF market participant that experiences three unexcused system outages within a five-business-day period will be suspended from quoting for all securities in the ADF market for 20 business days
In order to comply with do not call regulations, a FINRA member must use a version of the National Do Not Call Registry obtained
No more than 31 days prior to when the call was made
Which of the following is TRUE regarding a request for an excused withdrawal as market maker?
A market maker may be granted an excused withdrawal for up to 5 business days for technical issues such as system outages. This withdrawal period may be up to 60 calendar days for legal or regulatory issues. No SEC approval of the withdrawal is required.
Each member firm is required to review its contact information that’s been provided to FINRA within
A member firm is required to review and, if necessary, update its required contact (executive representative) information within 17 business days after the end of each calendar year. In addition, it’s also required to update its contact information to FINRA promptly, but (in any event) not later than 30 days following any change in such information
When a broker-dealer changes its record-keeping system from a physical format to an electronic-based one, when must it notify its Designated Examining Authority?
At least 90 days before the change
Under the provisions of Regulation S, a U.S. issuer makes an overseas offering of non-convertible debt. How long must an investor who participated in this offering wait to resell the position to an investor in the United States?
Non-convertible debt offerings (straight debt) being sold under Regulation S is subject to a 40-day holding period; however, convertible debt is treated as equity securities under Regulation S.
Under the Code of Arbitration, what’s the statute of limitations?
Under the Code of Arbitration, the statute of limitations is six years from occurrence of the event
A firm is the managing underwriter of a follow-on offering of an OTC security. The aftermarket prospectus delivery rule
Requires the firm to deliver a prospectus for 40 days
An issuer is required to provide an annual proxy statement to shareholders at least
20 calendar days prior to the meeting
Which of the following statements is TRUE concerning the Consolidated Audit Trail system and clock synchronization?
Computerized clocks must be synchronized to within 50 milliseconds of the NIST and manual time stamping devices must be synchronized within one second of the NIST standard.
Form 8-K is filed
All companies that are registered with the Securities and Exchange Commission are required to promptly file Form 8-K for current reporting, upon the occurrence of any material event that would affect its financial condition or the value of its shares, and that would be deemed of significant interest to the public.
Final settlement of a syndicate account must be made by no later than how many days following the syndicate settlement date?
90
What is the typical minimum free-look period for a variable annuity, during which an investor may surrender (cancel) their policy without penalty?
10 days
Under the order display rule a market maker must update its quote within what time frame?
30 seconds
What is a graphic communication?
The term graphic communication includes any form of electronic media including audio- and videotapes, CD-ROM, facsimiles, websites, and voicemail messages, as well as substantially similar messages widely distributed by computer.
The filing of Form 144 allows the sale of restricted and control stock for a period not exceeding
90 days
If an unrecognized trade is received by a firm and it cannot be confirmed, the receiving firm must send a DK notice within
One business day
Under the TRF reporting rules, an order-entry firm
Under the TRF rules, the order-entry side of the transaction must:
Enter a version of the trade within 20 minutes of execution using the OE function
Accept the market-maker’s trade entries on the TRF within 20 minutes of the execution
Decline incorrect market-maker trade entries on the TRF to cancel trade entries, when necessary
When does a TRACE reporting day begin?
The TRACE reporting day runs between 8:00 a.m. and 6:29:59 p.m.
AAA Financial receives an ACAT transfer request from BBB Brokerage. Under SRO rules, how many days does AAA Financial have to resolve a discrepancy in the transfer?
Under SRO rules, the carrying broker-dealer has one business day to either protest or validate a transfer request. If validated, the transfer must take place within three business days. Under FINRA rules, when a member receives a claim notice relating to a securities account asset transfer, the member must resolve the claim within five business days from receipt of such claim or take exception to the claiming member by setting forth specific reasons for denying the claim.
A broker-dealer has reported a trade to TRACE. FINRA will confirm that it has received notice that the trade has been accepted
Broker-dealers are required to report trades to TRACE within 15 minutes. FINRA will send the firm a notice immediately confirming that it has received the trade report.
A non-reporting U.S. issuer makes an offering of convertible corporate bonds in an overseas transaction. According to Regulation S, how long must an investor who participated in this offering wait to resell the position to an investor in the United States?
365 days
A Regulation M notice is required to be filed with
A Regulation M notice is required to be filed by the managing underwriter with FINRA by no later than one business day prior to the start of the restricted period.
A syndicate member may publish a research report for an IPO
The restriction for a member firm preparing a research report on an IPO is 10 calendar days. Follow-on offerings have a restricted period of 3 calendar days for managers and co-managers. Other distributions participants may publish research on a follow-on offering immediately.
If a customer executes an equity trade in a cash account, Regulation T requires the broker-dealer to obtain payment
On a T + 3 basis
What’s the holding period for securities that are purchased under Regulation A?
There’s no holding period
How frequently are market centers required to report the percentage of trades that received price improvement?
Monthly
What period(s) must be covered by performance advertising for a variable product?
One, five, and ten years
A market maker has been granted an excused withdrawal due to its participation in a merger transaction. What’s the maximum duration of this withdrawal?
Firms may be granted an excused withdrawal for up to 60 calendar days for legal or regulatory issues. On the other hand, a market maker may be granted an excused withdrawal of up to five business days for issues beyond its control, such as due to a systems outage or power failure.
Under Regulation SHO how frequently must a firm’s Easy to Borrow list be updated?
Daily
A transaction in an equity security is executed at 5:05:01 p.m. The trade must be reported to the FINRA
5:05:11 p.m. the same business day. The TRF and ORF are open from 8:00 a.m. to 8:00 p.m. ET. Transactions in equity securities must be reported to FINRA as soon as practicable but no later than 10 seconds after execution anytime the reporting systems are open.
During normal market hours a broker-dealer is required to submit reports of transactions in securities trading in the third market
Within 10 seconds
Which of the following statements is TRUE of a respondent who receives a complaint from FINRA’s Department of Enforcement?
The RR must generally respond within 25 days.
An individual who has been named an officer of a publicly traded corporation is required to report to the SEC
An individual who becomes an insider is required to report this fact to the SEC within 10 days of becoming an insider by filing Form 3.
Consolidated Audit Trail (CAT) system reports must be submitted
On a trading day basis
A Currency Transaction Report (CTR) must be filed within how many days?
15
A broker-dealer is conducting an internal investigation due to allegations of insider trading by one of its registered representatives. Which of the following actions should the firm take?
It’s required to file a report with FINRA within 10 business days of the end of each quarter to describe each open or completed internal investigation.
If a client’s account is frozen because of a failure to pay under Regulation T, the account must remain frozen for how many days?
When a client fails to pay for a purchase of securities, the member firm is required to sell out the securities and freeze the customer’s account for 90 days.
A broker-dealer is permitted to enter into temporary subordination agreements for purposes of engaging in underwriting activities if the duration of the agreement does NOT exceed
Subordination agreements must have a duration of one year. There is, however, an exception to this requirement. A broker-dealer is allowed to enter into a temporary subordination agreement for purposes of engaging in underwriting activities. Temporary subordination agreements may not exceed 45 days in duration.
A registered person has become subject to statutory disqualification. In this case, the firm must
Notify FINRA within 10 days
Retail communications that pertain to mutual fund shares must be
Filed with FINRA within 10 business days of first use
What’s the maximum number of days that a firm is able to maintain a temporary hold on disbursements or transactions in an account that’s believed to be the subject of financial exploitation?
To protect an account from financial exploitation a broker-dealer may place an initial hold on transactions or disbursements of 15 business days from the date it was first placed. If an internal review supports a reasonable belief that the account is subject to financial exploitation, the hold can be extended for an additional 10 business days. If the firm’s belief is that the potential still exists for financial exploitation, the hold can be extended an additional 30 business days. This amounts to a hold extending for a total of 55 business days.
If a member of a syndicate (other than the manager) effects a stabilizing bid
The firm is required to notify the manager within three business days of any stabilizing transaction
The person against whom a complaint is filed must file a response to the complaint within how many days of first receiving it?
Once a respondent receives a copy of a complaint from the Department of Enforcement, a response must be provided within 25 days. If this response is not filed, a second notice will be sent and the respondent then has 14 days to answer. Failure to respond to the second notice may be treated as the respondent’s admission to the allegations in the complaint.
How often can Form 144 be filed with the SEC?
Once every 90 days
Financial Reporting for Carrying Broker - Dealers
- FOCUS Part I Monthly (within 10 business days of month end)
- FOCUS Part II Quarterly (within 17 business days of the end of the quarter); also upon termination of
exchange or SRO membership
Financial Reporting for Introducing (Non-Carrying) Broker - Dealers
- FOCUS Part I Not required
- FOCUS Part IIA Quarterly (within 17 business days of the end of the quarter); also upon termination of
exchange or SRO membership
Records that need to be kept for a lifetime
Corporate and partnership documents
Records that need to be kept for 6 years
-Blotters (records of original entry),
-ledgers,
-new account forms,
-account statements, and
-powers of attorney
Records that need to be kept for 3 years
-Order tickets,
-confirmations,
-Forms U4 and U5,
-employee records,
all forms of customer communication,
-trial balance
An issuer is required to provide an annual proxy statement to shareholders at least:
20 calendar days prior to the meeting
If an error has been identified in a report that’s submitted by a firm into the Consolidated Audit Trail (CAT) system, it must be corrected
By 8:00 a.m. ET on the third business day following the trade
According to the FINRA Corporate Financing Rule, compensation disclosures must be filed with FINRA under which of the following time frames?
The FINRA Corporate Financing Rule has two different filing requirements based on whether the securities are registered or exempt from registration. If the securities are to be registered, the required disclosures are to be filed with FINRA by no later than three business days following the filing of the issuer’s registration statement with the SEC (or any state securities commission). If the issue is exempt from registration, the disclosures must be filed with FINRA at least 15 business days prior to the anticipated offering.
A customer who has purchased shares of an exchange-traded fund (ETF) may be extended credit by a broker-dealer
Immediately
