Unknowns 3 Flashcards
What functions are performed at an OSJ?
- Order execution and market making
- Structure public/private offerings
- Custody of customer funds/securities
- New acct forms final approval
- Review/approve customer orders
- Final retail comms approval
- Responsible for supervising one or more ppl at branch offices
How often is an OSJ inspected?
Annually
Can an OSJ supervise a branch office and a non-branch office?
Yes
How often is a supervising branch office inspected?
Annually
How often is a non-supervising branch office inspected?
Every three years
How often is a non-brach inspected?
Periodically
How many emergency contact ppl are needed for Business Continuity Plans?
Two contacts but ONLY ONE must be senior management AND a registered principal
Bank Secrecy Act Currency Transaction Report (BCTR or CTR) is reported for transaction that exceed
____ during a business day by one customer and filed within ____ days.
$10k of withdrawals or deposits (CASH only) and filed within 15 calendar days
Suspicious Activity Report (SAR)
Filed for a transaction or group of transactions equals or exceeds $5k AND the firm is suspicious
Filed within 30 calendar days
How long are records retained for when an RR leaves the firm on BrokerCheck?
10 years
A location from which member firms effect, solicit, or induce securities transactions. Maybe supervised by a principal or an RR.
Branch office
If a branch office moves, what form and when does it need to be filed?
Form BR within 30 days
Non-Branch offices do what?
Back office operations (non-sales)
Sole function is ONLY soliciting investment banking services
Non-branch location types
- back-office, operations
- location of convenience used occasionally or by appt only
- floor of an exchange
- temporary or emergency office
- temporary location used less than 30 times per year (vacation home)
- Less than 25 trades per year
- RR’s primary residence
Step out
a broker-dealer allocates part or all of the transaction to another broker-dealer for clearing purposes
Give up
One member agrees to permit another member to report and lock in trades on its behalf. Requires written documentation and both firms may still be held responsible if the trade is not properly reported
TRF and ORF operational hours
8a - 8p
Transactions imust be reported to FINRA no later than 10 seconds anytime the reporting systems are open
Under the anti-dilution provisions of the New Issue Rule, a restricted person may purchase shares of an equity IPO if
Held the shares for at least one year prior to the effective date and doesn’t sell the shares for three months following the effective date
Excused withdrawal for OTC equity and Reg M restricted period
Firms that are quoting OTC equity securities are permitted to withdraw their quotes without a re-registration penalty and, therefore, a request for an excused withdrawal status is not required.
A short position can be covered by purchasing securities in a public offering if the short sale occurred more than how many days preceding the pricing of the offering?
at least 5 business days
When must an error report be submitted to CAT by a firm?
The firm must submit corrected data by 8:00 a.m. ET on the third business day following the trade.
All of the following are required to be disclosed by a research analyst in a public appearance
The spouse of the research analyst has a short position in the subject company
The subject company is currently a client of the firm
A member of the research analyst’s household is an officer of the subject company
Not for public appreace: Firm makes a market in the subject security
When a transactions involving a restricted equity security is executed between midnight and 8:00 am under Rule 144A the trade must be reported to the ORF or TRF
Must be reported at any time on the same business day as the transaction. All other transactions involving equity securities that are executed between midnight and 8:00 a.m. are reported to FINRA/TRF between 8:00 a.m. and 8:15 a.m.
Are research reports required to be filed with FINRA?
No FINRA filing is required. Just approval by a Supervisory Analyst.