According to SEC rules, fingerprinting is required for all broker dealer employees EXCEPT
those not engaged in the sale of securities, or do not regularly have access to the keeping, handling, or processing of securities, money, or original books and records relating to securities or money. (18-459) Edit
Series 24 General Securities Principal Registration DOES NOT qualify an individual to function as what?
(1) Registered Options Principal, (2) General Securities Sales Supervisor for Options/Municipal Securities, (3) Municipal Securities Principal, (4) Municipal Fund Securities Principal, (5) Financial and Operations Principal, (6) Introducing Broker-Dealer Financial and Operations Principal (18-463) Edit
Series 9/10 General Securities Sales Supervisor Registration DOES NOT qualify and individual to what?
(1) Supervise the origination and structuring of underwritings, (2) Supervise Market Making, (3) Determine final approval of advertisements, (4) Supervise overall compliance with financial responsibility rules. (18-463) Edit
Office of supervisory jurisdiction; Each member firm is required to designate as an OSJ any branch office that conducts: (1) order execution/market making, (2) Structuring of public offerings or private placements, (3) Maintaining custody of customer's funds/securities, (4) final acceptance of new accounts, (5) final approval of advertising or sales literature, (6) review and endorsement of customer orders, (7) supervising of activities of persons associated with the member at one or more branch offices. (18-467) Edit
Difference between OSJ, Branch Office, Non-branch office
an OSJ is a main or regional head office that is headed by a principal, Branch offices are not registered as OSJs but have registered reps working there, and Non-branch offices are tertiary locations including admin, rep's home/location of convenience (such as Starbuck's), or an off-site disaster recovery location. (18-470) Edit
the status of an individual who does not complete Regulatory Element within 120 days of the 2 year anniversary of registration. A person who is CE Inactive cannot engage in or receive compensation for the activities of a registered rep, other than trailing commissions for business conducted before the inactive period. (18-470) Edit
What events could cause Statutory Disqualification?
(1) felony convictions w/in 10 years, (2) securities, fraud, or ethics-related misdemeanors w/in 10 years, (3) injunctions involving investment activities regardless of age, (4) expulsions from a SRO (self-regulatory organization), (5) bars/suspensions ordered by SEC or SRO, (6) denial of registration by SEC, (7) findings that a person made a false statement before an SRO, (8) Involvement in arbitration or civil litigation with findings of sales practice violations, (9) revocations or suspensions from an accountant, attorney, or federal contractor role, (10) filing for bankruptcy w/in past 10 years, (11) findings by SEC, CFTC, or an SRO of willful violation of securities or commodities laws. (18-473) Edit
Which of the following statements about statutory disqualification are TRUE (select all that apply)
(I) AN individual or firm may be subject to statutory disqualification, (II) Certain persons may re-enter or continue in the securities industry following a SD, (III) Disqualifying events can include bats, injunctions, suspensions, and expulsions from certain activities, SROs, and exchanges. (IV) Once it becomes aware of a SD event, a member is obligated to report the event to FINRA.; All (18-475) Edit
In order for a firm to begin business as a broker-dealer, it must have satisfied all of the following requirements EXCEPT (a) filed a Form BD, (b) Become a member of an SRO, (c) Received approval from the SEC to begin business as a registered broker dealer, (d) Become a member of SIPC
C (18-475) Edit
A Series 79 qualified rep may engage in all of the following activities EXCEPT: (a) Facilitating a debt offering through a private placement, (b) Offering to sell a customer restricted securities, (c) Advising a customer of a financial restructuring, (d) Assisting a client in a corporate acquisition
B (18-476) Edit
IN which of the following scenarios has a violation of the FINRA CE requirements occurred?
(a) A firm has defined its Firm Element program to include courses prepared internally, (b) An experienced rep has not completed Regulatory Element within 130 days of the 5th anniversary of registration, (c) A new rep has not completed firm element withint 93 days of the 2nd anniversary, (d) A firm has completed its training plan for the next fiscal year, but does not file it with FINRA before year end.; B (18-476) Edit
All of the following persons are subject to completion of the Firm Element Training requirements EXCEPT (a) Supervisors of registered reps, (b) Sales assistants with no customer contact, (c) Investment company shareholder servicing agents, (d) Registered research analysts that deal directly with institutional customers.
B (18-476) Edit
Statutory disqualification can result in all of the following EXCEPT (a) DQ from registration for a firm or rep, (b) A fine imposed by FINRA on the firm or rep, (c)DQ from continued activities in the business of securities for the firm or rep, (d) The filing of an eligibility proceeding
B (18-477) Edit
All of the following could result in a statutory DQ of a registered rep EXCEPT (a) A felony drug charge 15 years ago, (b) Conviction of a misdemeanor in the mortgage business 8 years ago, (c) a failure to supervise violation in the past 5 years, (d) Suspension from all trading activities on the PHLX 6 years ago.
A (18-477) Edit