UNIT 28 CHECKPOINT EXAM Flashcards
FOCUS reports, U-4 forms, and order tickets are examples of records that must be kept for
A) four years.
B) six years.
C) three years.
D) 10 years.
C) three years.
Explanation
These documents must be kept on record for three years.
Sennacherib Partners, a broker-dealer partnership, maintains its records to meet or exceed regulatory requirements. Once a year, the partners gather for the annual partnership meeting. In order to meet the regulatory requirement, how long must Sennacherib maintain the minutes from the most recent partnership meeting?
A) For 10 years
B) For six years
C) For four years
D) For the life of the partnership
D) For the life of the partnership
Explanation
The partnership agreement and records of partnership meetings are kept indefinitely.
Dwight was appointed a principal for Seacoast Securities in June of 1996. He continued in the position until 2012, when he left to start his own firm. How long did Seacoast need to maintain the record of his principal designation?
A) Until 2004
B) Until 2018
C) Until 2016
D) Until 2002
B) Until 2018
Explanation
Principal designations are retained for six years after the designation ends. Six years after Dwight left is 2018.
Tony was fired for cause from Great Plains Investments. A U-5 Form was promptly filed stating that the cause was rude treatment of coworkers creating a hostile work environment. Great Plains will keep the U-5 record for a minimum of
A) three years.
B) two years.
C) six years.
D) indefinitely.
A) three years.
Explanation
U-5s have a three-year retention requirement.
All of the following are records that are kept for the life of the firm except
A) articles of incorporation.
B) trade blotters.
C) board meeting minutes.
D) stock book.
B) trade blotters.
Explanation
Trade blotters are maintained for six years. Documents that are related to the creation of the firm and its basic organizational structure are normally kept for the life of the firm.
Written complaints are kept for
A) six years.
B) three years.
C) 10 years.
D) none of these.
D) none of these.
Explanation
Complaints are kept for four years after resolution.
Stock ledgers, a record of stocks owned by the firm, are maintained for at least
A) three years.
B) 10 years.
C) six years.
D) four years.
C) six years.
Explanation
Financial and holding’s records are normally retained for six years.
Schmidt, a customer, has sent a written complaint to a firm principal. After a conversation with the customer, the principal was able to resolve the customer’s concerns. How long must the complaint be held on file after the resolution?
A) Six years
B) Three years
C) Indefinitely
D) Four years
D) Four years
Explanation
Any record of written complaints must be kept for four years.
