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FINRA Rules Exam 174 Questions with Verified Answers,100% CORRECT
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FINRA Rules Exam 174 Questions with Verified Answers
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FINRA Rules Exam 174 Questions with Verified AnswersEnforcement Bodies - CORRECT ANSWER Securities and Exchange Commission,
FINRA
Federal Reserve determines - CORRECT ANSWER which securities are marginable.
Enforcement is performed by FINRA. - CORRECT ANSWER MSRB writes rules for
municipal market participants
FINRA is the regulator for all of the securities markets - CORRECT ANSWER
Primary Market (new issues); the First Market (trades on exchanges); the Second
Market (OTC trades of non-exchange listed securities); the Third Market (OTC
trades of exchange listed issues) and the Fourth Market (direct trading between
institutions on ECNs and ATSs)
FINRA does not regulate - CORRECT ANSWER CBOE options trading floor. There,
the CBOE is the regulator
"RR") may be compensated only by - CORRECT ANSWER brokerage firm for which
the RR works, based on trading commissions, salary, or asset based fees.
Customers may not pay compensation - CORRECT ANSWER directly to registered
representatives.
To take a second job - CORRECT ANSWER each registered person gives written
notice to the employing member firm and must follow instructions of the
employing member firm.
no requirement to notify, or get the approval of, FINRA
,FINRA requires that associated persons give written notice to their employer and
receive employer approval to - CORRECT ANSWER serve as an officer, director, or
partner of another business organization
any outside business activities must be disclosed - CORRECT ANSWER individual's
U-4 filing, so the U-4 must be amended promptly if the employer approves and
outside work is taken.
any outside business activities are shown on - CORRECT ANSWER registered
representative's BrokerCheck report.
FINRA limits gifts related to one's employment in the securities business, either
given or received, - CORRECT ANSWER $100 in value per person per year.
Business entertainment does not fall under the $100 gift limit. - CORRECT
ANSWER is permitted as long as it is not too excessive or too frequent and it must
comply with the firm's policies and procedures.
Business entertainment means - CORRECT ANSWER representative and the
customer are together at some type of event.
Registered representatives can only shares commissions and fees with - CORRECT
ANSWER other registered persons at the same broker-dealer
prohibited from sharing in commissions or paying fees to registered persons at
other brokerage firms and to any unregistered individual.
Continuing Education - Firm Element - CORRECT ANSWER each member firm must
deliver a Continuing Education program to each registered person that covers
relevant compliance issues, regulatory issues, and product features and issues
must document each person's participation and completion of the annual Firm
Element Continuing Education program
Continuing Education - Regulatory Element - CORRECT ANSWER Regulatory
Element Continuing Education program must be completed. This is administered
by FINRA on the PROCTOR system
, Regulatory Element Continuing Education program must be completed. -
CORRECT ANSWER each registered person's 2nd anniversary of registration and
every 3rd year thereafter,
Regulatory Element - CORRECT ANSWER training session that must be completed
within 120 days of notification , Not completed, that person's license is suspended
until completion occurs.
Failure to Complete Regulatory Element - CORRECT ANSWER Not completed, that
person's license is suspended until completion occurs.
Parking Licenses - CORRECT ANSWER prohibited practice; person cannot arrange
to have a member firm hold his or her license during the period when he or she is
not employed at a member firm.
If a registered person leaves the industry, all licenses lapse after 2 years. -
CORRECT ANSWER If that person re-enters the industry after 2 years, all of the
licensing examinations must be taken again.
Sales Assistants/Assistant Representative - CORRECT ANSWER Order Processor is
an individual that has a Series #11 license.
This person can only accept unsolicited customer orders, but cannot solicit
customers or make recommendations to customers.
This person can take new account information (e.g., customer name, address,
social security number, etc.), but cannot perform a suitability determination or
sign the new account form.
This person can be paid a salary, but cannot be paid commissions.
FINRA must be notified if a registered person: - CORRECT ANSWER has violated
the Securities Acts;
is suspended or expelled by another self-regulatory organization;
is sued under the Securities Acts;
is convicted of a misdemeanor involving securities or monies; or is convicted of
ANY felony;
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