UNIT 31 CHECKPOINT EXAM Flashcards
When a registered person terminates from a FINRA member firm, filing Form U-5 is the responsibility of
A) the depository trust company.
B) the registered person.
C) the member firm.
D) FINRA.
C) the member firm.
Explanation
Should a person registered with a member resign or be terminated, the member must file Form U-5 with the Central Registration Depository (CRD) within 30 days of termination date.
Josephine takes and passes the Securities Industry Essentials exam while employed as an intern at Seacoast Securities, Inc. She then returns to school full time to complete her undergraduate degree in Business Administration at the University of San Francisco. How many years does she have to affiliate with a member firm and complete a top-off exam before she would be required to retake the SIE?
A) Two years
B) Five years
C) Four years
D) 10 years
C) Four years
Explanation
Once an individual passes the SIE, a person must also take and pass a top-off exam within four years. After four years have passed they will need to requalify by taking and passing the SIE again before passing a top-off exam.
On Form U-5 all of the reasons for termination listed here require an additional explanation except
A) voluntary.
B) other.
C) permitted to resign.
D) discharged.
A) voluntary.
Explanation
Of the five reasons for termination on the form, only voluntary and deceased do not require further explanation. In a voluntary termination, the representative may not have stated the reasons for leaving. If deceased, that explains itself.
After terminating from a securities firm and leaving the industry, regulators retain jurisdiction for a former representative for a period of
A) 2 years.
B) 1 year.
C) 5 years.
D) 180 days.
A) 2 years.
Explanation
Regulators retain jurisdiction for a period of two years from termination. A regulator may investigate and hold hearings for actions taken while employed during this period.
Rihanna resigns from her position as a Series 7 registered representative with Princeton Securities, a FINRA member firm, where she has worked for five years. After completing an accelerated graduate studies program, and receiving a Ph.D. in 30 months, she wishes to return to her prior position as a registered representative. In order to do so she
A) does not need to take the exams due to the education exemption.
B) must retake the Series 7 exam but not the SIE exam.
C) must retake the Series 7 exam and the SIE exam.
D) does not need to take the exams because she is returning to the industry within 36 months.
B) must retake the Series 7 exam but not the SIE exam.
Explanation
The time limit to return for a representative exam (Series 6 or 7) is within two years. The time limit for the SIE exam is four years. There is no education exemption.
