Unit 18 Flashcards
(34 cards)
When must an appeal be made by?
Within 25 days of the decision date
Sanctions can include
- Censure
- Fine
- Suspension up to 2 years
- Expulsion
- Barring a member
FINRAs formal method of handling securities- related disputes or clearing controversies between members, public customers, clearing corporations or clearing banks. Any claim, dispute or controversy between member firms or associates persons is required to be submitted to arbitration
Code of Arbitration Procedure
FINRAs formal procedure for handling trade practice complaints involving violations of the Member Conduct Rules. FINRAs Department of Enforcement is the first body to hear and judge complaints. Appeals and review of Depsrtment of Enforcement decisions are handled by the National Adjudicatory Council
Code of Procedure (COP)
No arbitration claim is eligible for submission if
6 years or more have elapsed from the time of the event giving rise to the claim
When must the award from arbitration be given by?
Within 30 days of the decision date
What’s re the arbitration thresholds?
- $50,000 or less = one arbitrator
- $50,000-$100,000 = one arbitrator unless both parties agree to three
- Greater than $100,000 = three arbitrators unless both parties agree to one
Any person who worked in financial industry and any financial industry professional who regularly represents or provides services to investor parties in disputes concerning investment accounts or transactions
Non public arbitrators
In arbitration, how long does the respondent have to respond to the director and claimant?
45 calendar days
If a customer requests to see the pre dispute arbitration agreement she has signed, how long does a member firm have to supply it?
Within 10 business days of the request
In what scenarios is arbitration mandatory?
- A member against another member or registered clearing agency
- A member against an associates person
- An associates person against another associated person
The arrangement whereby FINRAs Board hears and settles disputes between members, Allie’s members, member organizations and their employees. No. Members in dispute with member or employees may submit voluntarily. Once both parties agree to the process, there is no appeal
Arbitration
What are the 6 categories of DRP?
- Criminal disclosure
- Regulatory action disclosure
- Civil judicial disclosure
- Customer complaint/arbitration/civil litigation disclosure
- Termination disclosure
- Financial disclosure
When must changes to a U4 be made?
No later than 30 days after member is made aware of changes
What is in Form U4?
- Name, address and aliases
- 5 year residency history
- 10 year employment history (verify past 3 years)
- Disclosure of felonies
Shows that assumed rates of return may be used to demonstrate the performance of variable life policies
Hypothetical illustrations
When must retail communication be delivered for options?
At least 10 calendar days before first use if the OCC Disclosure Booklet has not been delivered
Who is responsible for advance approval of retail communications?
Registered Options Principal (ROP)
A description issued by an independent third party. Relates to the sensitivity of the NAV of a portfolio of an open end management investment company that invests in debt securities to changes in market conditions and the general economy
Bond mutual fund volatility rating
Refers to any entity that provides general information about investment companies to the public that is independent of the investment company and its affiliates and whose services are not procured by the investment company or any of its affiliates to assign the investment company a ranking
Ranking entity
How long must retail communication be kept on file?
3 years from first use
Within a firms first year, when must a firm file retail communication?
At least 10 business days before first use
After the first year of registration, the firm may file retail communication when?
Within 10 business days of first use
What type of communication does not require principal approval?
Institutional
