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Series 24 > Unit 1 Supervision of Registration of the BD and Personnel Management Activities > Flashcards

Unit 1 Supervision of Registration of the BD and Personnel Management Activities Flashcards

1
Q

Foreign associates of a member firm who are noncitizens and who conduct all business outside the US must

A

be registered with FINRA but are exempt from passing a qualification examination

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2
Q

Required information on Form U4 includes

A

a 5 year residency history and 10 year employment history

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3
Q

If an individual fails a qualification exam 3 straight times, a 4th attempt may not be made for

A

180 days

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4
Q

A member firm may grant discounts, concessions, or other allowances to

A

a foreign nonmember ineligible for FINRA membership but registered with its country’s SEC approved regulatory authorities

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5
Q

A registered person leaves the industry and, 18 months later, reassociates with another member firm. Under FINRA rules, this person’s cycle for determining the dates for the regulatory element of continuing education is based on

A

initial registration date

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6
Q

Before signing Form U4, a principal must verify the applicant’s employment history for the previous

A

3 years

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7
Q

Under FINRA rules, amendments to FORM BD must be made within

A

30 days of any change

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8
Q

Under FINRA rules, which of the following must be registered as principals?

A

Managers of an OSJs

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9
Q

An individual will be statutorily disqualified from registration with FINRA if convicted of money or sec related fraud within the previous

A

10 years

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10
Q

A Series 6 license holder is permitted to sell

A
  1. mutual funds
  2. closed end funds as a new issue
  3. unit trusts
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11
Q

A RR leaves the BDA to join BDB. Which are true regarding U5?

A
  1. BDA must file Form U5 and FINRA
  2. BDA must provide a copy to its former employee
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12
Q

A member firm may join with a nonmember in

A

underwriting exempt sec

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13
Q

Under FINRA rules, a RR must complete the regulatory element of continuing education within how many days of a registration anniversary date?

A

120 days

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14
Q

A member firm files Form U5 with FINRA for a former employee. 2 years later, the member learns of facts that would cause the information filed to be inaccurate. Under FINRA rules, the member must file an amended Form U5 within

A

30 days

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15
Q

Which are true regarding various forms that BD use in the sec business?

A
  1. Form MC-400 is used when employing a statutorily disqualified individual
  2. Form U4 is used to register an associated person
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16
Q

Investors wishing to investigate the registration history of the RR handling their account would do so by going to the Broker Check program at

A

the CRD

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17
Q

A RR with your firm terminated her registration for personal reasons. Now, 16 months later, she wishes to return to work. Which are true?

A
  1. She does not have to retake the exam
  2. She must file a new Form U4
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18
Q

All are true relating to a FINRA member firm’s executive representative.

A
  1. the individual must be a member of the firm’s senior management
  2. the individual must be registered as a principal
  3. changes to the executive representative must be noted in writing to FINRA
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19
Q

You are interviewing a potential RR. She indicates that she previously was employed by another FINRA member firm. You ask for a copy of her Form U5 and are told that she has lost it. You would be able to obtain a copy from.

A

the CRD

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20
Q

A registered principal voluntarily terminates his registration. Should a complaint surface relating to activity occurring while he was registered, FINRA would have jurisdiction for a period of

A

2 years

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21
Q

A candidate for registration with your firm fails to indicate on Form U4 that he was once arrested for embezzlement. The charges were eventually dropped when the guilty party admitted to the crime. Several months later, this matter is brought to your attention. You should

A

require the individual to file an amendment to Form U4

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22
Q

Jim, one of your RR, wishes to pursue a financial degree at a nearby community college. Your firm has expressed willingness to rehire him when he returns with his degree. He worked very hard to obtain his Series 6 license and wants to know how to keep it current while he is in school. You tell him

A

His license will terminate when he leaves the firm, but if he returns in 2 years or less, he need not retake the exam

23
Q

You have just hired a new RR who is 21 years old. You must verify his employment record for the last how many years?

A

3 years

24
Q

A RR who does not complete the regulatory element of continuing education within the prescribed time frame

A

may not perform any of the functions of a rep until the Regulatory Element is satisfied

25
Q

A RR leaves the industry to accept a position as a finance professor. The rep must requalify by examination to return to the industry if he is unaffiliated with a BD for more than

A

2 years

26
Q

The Code of Arbitration would handle

A

disputes involving a member and the public if brought by the public customer

27
Q

If a member wishes to merge with another member, FINRA must be notified

A

at least 30 days prior to the closing date

28
Q

Investors wishing to investigate the registration history of the RR handling their account would do so by going to the Broker Check program at

A

www.finra.org

29
Q

You have hired a Tier 1 individual. This will involve an annual charge by FINRA of

A

$1500

30
Q

A newly registered introducing BD refers business to another registered BD that has a line of business approve in its FINRA membership agreement. The referring BD

A

may share in commissions in a broker to broker split

31
Q

After being expelled by the NYSE, a firm may NOT be granted membership in FINRA if it files Form BD and a Form U4 for each associated person. True or False?

A

True

32
Q

A restriction agreement prohibiting certain activities of a member firm remains effective throughout the life of the firm. True or False?

A

True

33
Q

Member firms are obligated to notify FINRA 30 days prior after merging with or acquiring another member firm. True or False?

A

True

34
Q

Member firms are obligated to notify FINRA promptly, but not later than 30 calendar days if one of its associated persons is subject to a customer complaint alleging theft. True or False?

A

True

35
Q

If a member firm fails to pay fees and assessments in a timely manner, its membership may be revoked or suspended upon 21 days’ written notice from FINRA. True or False?

A

True

36
Q

Allows the holder to sell only corporate sec

A

Series 62

37
Q

Allows the holder to enter unsol orders, provide quotes, fill out new acct forms, and update client information but not make recommendations or solicit business

A

Series 11

38
Q

Allows the holder to sell general sec but not commodities

A

Series 7

39
Q

Allows the holder to supervise the member’s options business; all members engaged in option transactions must have at least one

A

Series 4

40
Q

Allows the holder to supervise most activities of a member firm, including trading, market making, investment banking, and sales; also may approve public communications

A

Series 24

41
Q

Allows the holder to sell investment company products sold with a prospectus

A

Series 6

42
Q

Allows the holder to supervise transactions in municipal sec; all member firms engaged in muni business must have at least one

A

Series 53

43
Q

Allows the holder to supervise transactions in municipal funds sec only

A

Series 51

44
Q

Allows the holder to act as a Compliance Official

A

Series 14

45
Q

Allows the holder to act as a municipal sec rep and is an acceptable prerequisite test for the Municipal Securities Principal Exam

A

Series 52

46
Q

An amendment to Form U4 involving possible statutory disqualification requires submission of an amended form

A

within 10 business days

47
Q

If a member learns that information it filed on Form U5 is inaccurate or incomplete, it must file an amended Form U5

A

within 30 days

48
Q

All of the the following may be SROs in the sec industry

A
  1. FINRA
  2. a registered stock exchange
  3. a registered clearing agency
49
Q

A stock exchange member firm that wishes to join FINRA must submit Form BD to which of the following?

A

FINRA’s district office where the applying firm has its hold office

50
Q

Which of the following must FINRA member firms that hold customer funds or sec supply to their customers at least once per calendar year?

A
  1. FINRA’s BrokerCheck hotline number
  2. FINRA’s website address
51
Q

Any of the following individuals would be an associated person of a registered BD firm

A
  1. a partner
  2. a RR
  3. a principal

Not file clerks

52
Q

Application for FINRA membership carries with it the firm’s agreement to do which of the following?

A

Comply with federal securities laws

53
Q

A member firm may be suspended or barred from association with FINRA members for which of the following?

A

Failure to pay dues

Series 24 (11 decks)

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