UNIT 31 QBANK Flashcards
When an employee is either terminated from, or willfully leaves, a member firm, Form U-5 must be filed. Under these circumstances, which of the following is true?
A) The employee is responsible for filing Form U-5 only when leaving the firm willfully.
B) Under either circumstance, the employee is responsible for filing Form U-5.
C) The employing firm is responsible for filing Form U-5 only if it has terminated the employee.
D) Under either circumstance, the employing firm is responsible for filing Form U-5.
D) Under either circumstance, the employing firm is responsible for filing Form U-5.
Explanation
Whenever a registered employee leaves a member firm under any circumstance, it is the employing member firm that is responsible for filing Form U-5.
A U-5 form should be filed with the Central Registration Depository within how many days after termination of a registered representative?
A) 10 business days
B) 30 days
C) Next business day
D) 15 business days
B) 30 days
Explanation
The U-5 form must be filed by the former employer within 30 days.
An amended Form U-5 must be filed and a copy sent to the former employee within how many days of discovery of the inaccuracy?
A) 25
B) 90
C) 10
D) 30
D) 30
Explanation
If a broker-dealer discovers that a filed Form U-5 was inaccurate, an amended form must be filed and sent to the former employee within 30 days of the discovery of the inaccuracy.
A registered representative was guilty of an undetected minor rule violation during the last year of employment at a broker-dealer firm. The representative has now decided to leave the industry. For how long might the representative still be subject to fines or other sanctions by Financial Industry Regulatory Authority (FINRA) if the violation is belatedly detected?
A) 6 months
B) 30 calendar days
C) FINRA no longer has jurisdiction
D) 2 years
D) 2 years
Explanation
FINRA retains jurisdiction over a registered person for two years after the person leaves the industry.
A registered representative has left a firm and joined another. The new firm must obtain a copy of the Form U-5 filled out by the old firm. Where might the new firm obtain a copy of the form?
I. From the new employee
II. From the Securities and Exchange Commission (SEC)
III. From Financial Industry Regulatory Authority (FINRA)’s Central Registration Depository (CRD)
IV. From the representative’s former employer
A) II and IV
B) II and III
C) I and III
D) I and IV
C) I and III
I. From the new employee
III. From Financial Industry Regulatory Authority (FINRA)’s Central Registration Depository (CRD)
Explanation
Copies of a new employee’s Form U-5 may be obtained from the employee, or from FINRA’s Central Registration Depository (CRD). Whichever the source, the firm must obtain the copy within 60 days of filing the new Form U-4 for the new employee.
If after a registered representative terminates the firm learns of something that should have been reported to the Central Registration Depository, how long does the firm have to make an amendment if that information would cause statutory disqualification?
A) 20 days
B) 10 days
C) 45 days
D) 30 days
B) 10 days
Explanation
The rule requires notification within 10 days if the information involves statutory disqualification.
When an employee is either terminated from, or willfully leaves, a member firm, Form U-5 must be filed. Under these circumstances, which of the following is true?
A) Under either circumstance, the employee is responsible for filing Form U-5.
B) Under either circumstance, the employing firm is responsible for filing Form U-5.
C) The employee is responsible for filing Form U-5 only when leaving the firm willfully.
D) The employing firm is responsible for filing Form U-5 only if it has terminated the employee.
B) Under either circumstance, the employing firm is responsible for filing Form U-5.
Explanation
Whenever a registered employee leaves a member firm under any circumstance, it is the employing member firm that is responsible for filing Form U-5.
A U-5 form should be filed with the Central Registration Depository within how many days after termination of a registered representative?
A) 15 business days
B) 10 business days
C) 30 days
D) Next business day
C) 30 days
Explanation
The U-5 form must be filed by the former employer within 30 days.
Registered representatives must complete or satisfy each of the following except
A) state registration requirements.
B) the regulatory element.
C) the Form U-5.
D) the firm element.
C) the Form U-5.
Explanation
Financial Industry Regulatory Authority (FINRA) requires that registered representatives complete both the regulatory and the firm elements of a continuing education (CE) program. In addition to satisfying FINRA requirements for registration, each state has its own requirements that must be satisfied before a representative can act in that state. A representative is not required to file a Form U-5. That form is filed by the member firm upon the termination of a registered representative for any reason. A copy will be provided to the departed representative.
When a registered person leaves the securities business, Financial Industry Regulatory Authority (FINRA) retains jurisdiction over that person for how long?
A) In perpetuity
B) 1 year
C) 2 years
D) 30 days
C) 2 years
Explanation
If a terminated person becomes subject to a customer complaint or charges are brought against that person by FINRA, that person remains subject to FINRA jurisdiction for two years following termination.
