Form NMA correct answers Opens 180 day window for new application for b/d registration
Finra responsibilities correct answers Obl/authority interpret rules, fees, compliance issues, disputes, CRD, education
Form BD correct answers form used by B/D to register with SEC, SRO's. Must be updated ...
Form BD correct answers form used by B/D to register with SEC, SRO's. Must be updated
within 30 days when out of date.
Form CMA correct answers must be filed electronically when there is a change in ownership or
control.
Finra regulates which securities? correct answers OTC nonexempt securities
Nasdaq rule 1014 correct answers org chart, business plan, supervisory systems, financial
projections, record keeping
When are DBA's acceptable? correct answers acceptable if filed with finra and commission
Each B/D must have a min of how many principals register (except for Sole proprietors)? correct
answers 2 principals (min)
DMR ( Dept of Member Registration) process/responsibilities? correct answers review
applicants capital, scope of business harmony with public interest and protection of investors.
DMR issues a written decision within how many days of the pre-membership interview? correct
answers 30 days (grant the application, deny it, grant with restrictions)
Finra requires how many resident principals for Office of Supervisory Jurisdiction? correct
answers 1 resident principal
What is statutory disqualification? correct answers disciplinary actions in the last 10 years by
SEC.
What is form MC400? correct answers Form that needs to be completed if a firm wants to
sponsor a person who was disqualified. Disqualifications also include DUI and assault, however,
they do not pose a risk to investors and may be approved.
What is the fee paid by firms to employee statutory disqualified employees (if approved by
finra)? correct answers $1500 annually Tier 1
$1000 annually Tier 2
If Finra bars or suspends a Associated Person, member firms cannot correct answers employee
these people in any capacity
, What is rule 9522? correct answers Dept of Member Regulation (DMR) has right to approve
statutory disqualified persons to become an associate of a member firm.
What is rule Rule 4530 correct answers must report within 30 calendar days.
What is Form BDW used for ? correct answers used to withdraw registration as a B/D
Member firms membership can be suspended/revoked if feed are not paid with in how many
days? correct answers 15 days
When is a principal required? correct answers 1)actively engaged in mngt of investment
banking/securities business
2) When supervising associated persons
How many days does a b/d have to respond to a potential employer regarding an associated
person? correct answers 10 business days
How many years of employment do principals need check before signing U-4? correct answers 3
years
Finger printing correct answers 3 attempts
summer interns do not need finger printing
non- registered persons - outside bookkeeping vendors
U-5 correct answers 1) must be completed in 30 days of termination.
2) new employer gets U-5 from Finra (not former employer)
3) if requested, new employee has 2 business days to forward u-5 to employer
Regulatory element requirements correct answers 120 days after 2nd registration anniversary and
every 3 years there after. If person fails to meet requirement, license will be "inactive'. Cannot
perform any job duties. In-Firm exemptions may apply if approved by Finra.
Firm element correct answers annual training by firm to review regulatory developments, sup
needs, scope of member business activities.
Brokerage supervision (principals) responsibilities correct answers 1) ensure RR have good
working knowledge of WSP's.
2) SEC Act 1934
3) review accts/activity/transactions
4) accepts new customer accounts
make sure RR is properly qualified
5) Suitability
What should a member firm do if customer refuses to provide information for new acct? correct
answers 1) Member firm may use whatever info available to decide whether to open account or
not.
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