Securities Act of 1933 correct answers Enacted to regulate how securities are registered, issued and distributed to the public. Primary market focused. AKA the Paper act.
Securities Exchange Act of 1934 correct answers Regulated broker-dealers and how existing securities are traded in the second...
FINRA Series 24 || with Complete Solutions.
Securities Act of 1933 correct answers Enacted to regulate how securities are registered, issued
and distributed to the public. Primary market focused. AKA the Paper act.
Securities Exchange Act of 1934 correct answers Regulated broker-dealers and how existing
securities are traded in the secondary market. Created the SEC and SROs. AKA the People Act
Securities Exchange Act of 1934 (5 things) correct answers 1. It contains important trading laws
2. It gave the Federal Reserve Board the power to regulate margin requirements
3. It created the SEC to be responsible for the creating and enforcement of securities laws
4. It allows securities exchanges to regulate themselves
5. It allows broker-dealers to regulate themselves
FINRA correct answers Only fully registered national securities association. All BDs must
register with FINRA except bank dealers and those who deal in exempt securities.
Self-regulatory organizations correct answers Exchanges and national securities associations can
regulate themselves. FINRA, MSRB, NASDAQ, NYSE, CBOE
Form BD correct answers An application for registration which identifies the type and nature of
the applicants business. Also must identify all owners and officers of the firm.
Fingerprint card correct answers Every officer or employee of a member firm who sells, handles,
or processes securities, or who supervises those who do, must be fingerprinted
Investment adviser correct answers The Investment Advisors Act of 1940 defines an investment
adviser as any person or firm that is in the business of providing advice or reports about
securities for compensation
Exempt from Advisers Act correct answers Advice is incidental to its business:
Lawyers, accountants, teachers, engineers (LATE)
Banks, broker-dealers, publishers
Only U.S. government securities or GSEs
RIA registration correct answers >$100mm in AUM
Pension consultants of plans >$200mm
principal office in Wyoming
Advisers to registered investment companies
Form ADV Part I correct answers Part I - general information about the business and its
ownership, clients, employees, business practices and any disciplinary events of the adviser or its
employees.
Form ADV Part II correct answers Part II - plain english narrative about business practice,
investment strategies, fees, conflicts of interest, disciplinary information
, Securities Investor Protection Corporation (SIPC) correct answers Nonprofit corporation that
provides insurance for the assets contained in investors' securities accounts.
General Principal (Series 24) correct answers A person engaged in managing or supervising
registered employees with respect to all activities of her office, except those involving options
accounts or financial reporting to regulators. A general principal may also approve advertising
and sales literature, including communications regarding municipal securities
General Security Sales Supervisor (Series 9 & 10) correct answers Supervises sales activities but
cannot supervise investment banking, trading or market making, or approve advertising or sales
literature
Financial & Ops Principal (Series 27) correct answers Prepares the financial reports for a
clearing firm, filed with FINRA and the SEC
Limited Financial & Ops Principal (Series 28) correct answers Prepares the less-involved
financial reports for a non-clearing firm, filed with FINRA and the SEC
Investment Companies & Variable Annuities Principal (Series 26) correct answers Supervises
sales of redeemable securities such as annuities, variable life insurance, and mutual funds
Direct Participation Program Principal (Series 39) correct answers Manages firms solely engaged
in the sales of limited partnerships such as real estate or energy products
Municipal Fund Securities Limited Principal (Series 51) correct answers Manages activities in
municipal funds securities such as college savings plans and local government investment pools
but may not supervise any other type of municipal security
Municipal Principal (Series 53) correct answers Supervises the purchase and sale of municipal
securities
Legal Reporting Requirements correct answers Must report to FINRA within 30 calendar days
whenever the member firm or any of its associated persons:
- Violates or is alleged to have violated any securities laws
- Customer complaint
Business Continuity Plan correct answers Member firms must create and maintain a business
continuity plan identifying procedures that must be followed in an emergency or business
disruption. It does not need to be filed with FINRA, but must be available upon request and
maintained at a secure off-site facility.
Must be series 24 approved and reviewed/updated annually
Regulatory Element correct answers Must take continuing education within 120 days of the
person's second registration anniversary and every three years thereafter
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