Timeline Questions Flashcards
Taping Rule, when do all firm employees need to be recorded?
60 days
Arbitration timeline
6 years from the event, not time of discovery
Rule 17a-11, BD is req’d to send immediate notice to the SEC and DEA, if:
- Total amount of subordinated loans exceeds 70% of the debt/equity total of the BD for a period exceeding 90 days
- Immediate notice if AI to net capital exceeds 1,500%
- Material inadequacies including being under net cap requirement,
○ Reported in 24 hours
Terminated employee, how long must former firm report events, subsequent to her termination?
ongoing with no time limit
What is free-riding, what is the penalty?
failure to pay for a security prior to selling it, must pay BD first!
90 day frozen account
Physical to electronic record keeping
notify DEA at least 90 days prior to switching to new storage media, besides optical disk
3 unexcused outages within 5 business days results in a :
20 business days suspension
Rule 147:
Provides an exemption from registration for the sale of the securities on an inter-state basis:
must wait 6 months prior to out-of-state resident
if before 6 months, can selll to in-state resident
Location change
file with FINRA within 30 days
physical moves
WKSI bankruptcy
last 3 years matter for designation
Trace reporting
T+1
CAT errors
must submit corrected data by 8am ET on the 3rd business day of the following the trade
CAT Clock synchronization
50 milliseconds of NIST
Manual within 1 second of NIST
Restricted equity securities reporting rules:
ANY TIME during the same business day if trans is between midnight and 8am
Regulation M filing
Filed by managing underwriter with FINRA no later than 1 business day prior to start of restricted period.
Rule 144 allows the sale of restricted and control stock for a period not exceeding:
- 90 days
Nasdaq security transaction executed at 3:05:01am, trade is reported to TRF @:
- 8:00:01 am, asap, no later than 10 seconds
Fidelity Bond Coverage must be reviewed
ANNUALLY
FINRA Investor Education and Protection Rule requires member firms to provide the FINRA website, broker check hotline and a statement as to the availability of an investors brochure that describes FINRA broker check
ANNUALLY
REGULATION T
- BD closes out an unpaid purchase no later than:
○ 3 business days following the settlement date
- Must receive payment in t+4 for an equity trade
Free look period for annuities
- At least 10 days
- Some states require longer
§ No surrender charge if …
Stabilizing a Nasdaq requires notifying
-
FINRA market regulations department
SRO rules state a BD cannot interfere with an account transfer UNLESS there is
a lien for money owed or another bona fide claim
Limit Order Display rule a market maker must update its quote within for any customer that improves the spread
30 SECONDS
Intermarket Sweep Order SWO
- Allows BDs to execute trades at inferior prices in one market while simultaneously directing orders for execution’s to other markets displaying protected quotes
Filmed TV or video ad must be FILED with SRO within
10 business days of FIRST USE
Unlisted REITs, when are BD’s permitted to use the NET investment method as a means of providing REIT’s estimated value on their account statements?
- At any time before 150 days following the second anniversary of breaking escrow
DPP compensation limits:
10% MAX! plus 0.5% of the proceeds for reimbursement
Net Capital Short Securities failure to Deliver =
3 business days before hair cut
Regulation A
- Selling shareholders
-
Tier 1 - 6m and 20m
Tier 2 - 22.5m and 75m
Blockbuster trades is held for _________, if clearing firm doesn’t respond by the end of the period, the trade is accepted.
15 minutes
